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Going to battle with Midland in AZ


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Hello everyone, thank god for this website. Just got served papers today, ive been expecting them. I don't know why im actually looking forward to this, need a project. Any help advice to get me steered in the right direction appreciated.

 

1. Midland Funding LLC

 

2. Barry Bursey, Esq.

 

3. 1784.04

 

4. Chase Bank

 

5. Served papers

 

6. Served in person

 

7. I believe so he had credentials around his neck

 

8. Phone call and letters which I ignored

 

9. Maricopa County

 

10. Feb 28 2010

 

11. 6 years I believe

 

12. just served today

 

13. no have not disputed with credit bureaus

 

14. no did not request validation

 

15. 20 days to respond

 

16. No evidence with summons

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Hi, If the alleged debt was acquired while you were married , it would be both yours, as az is a comm prop state. I've been through this with Bursey.   You can go to the courthouse and look at the complaint to see what they are suing you for. Usually it shows the evidence they will present.     Is it breach of contract or account stated?

 

This hobby or journey could last 2 years or more.  Or like someone from Az recently did for this relatively smaller amt was to get them to settle for about 1/2 the amount owed.  They will offer you a settlement at the pre-trial conference.  I don't know how much because I wanted to go to trial.  Each situation is unique.  But I will tell you that it is a lot of work writing motions , replying , notarizing, driving to court an endless amount of times.  Ask yourself , does this sound fun?/ and I could lose and owe the full amount  plus atty fees added!!

 

Or could I settle for 800.00 and walk away and 7 years after last pmt it will be gone off your CRA's.  Hope this helps.

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These cases all come down to evidence. If this debt has changed hands a time or two before Midland ended up with it, there's a decent chance Midland won't have all of the paper. If you opened the account with Chase and they sold it directly to Midland, I wouldn't even bother waiting to see what evidence Midland has (if you do, you may waive your right to arbitration). As others have said, arbitration is probably your best chance at beating this all together. If arbitration is not your cup of tea, settlement is probably the next best option.

Bottom line is do everything you can to keep the Maricopa Justice Court system from deciding your fate.

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I like arbitration with these types of cases because Midland does not like to arbitrate.  98% of the time they walk away from cases like this because it will cost them 10x the amount they are trying to get out of you just to have a hearing in a JAMS arbitration.

 

I am not familiar with the Chase credit agreements.  Do you happen to have yours still?  If not, we will have to search for one.  I'm sure we can find one, I will have to look around.  Hopefully the Chase agreements list JAMS as an arbitration forum.  JAMS is the most expensive for the other side, but it caps your fee at $250.  You may even be able to pay less if the Chase agreement says they will pay all or some portion of the consumer filing fee in arbitration.  Again, we will have to find an agreement to see what it says.

 

@Harry Seaward and @Goody_Ouchless are the AZ guys I know of here.  They would be able to help you with AZ proceedure such as whether a Motion to Compel Arbitration should be filed instead of an answer to the suit or with an answer to the suit.  Your motion would be asking the court to dismiss or, in the alternative, stay the case and order the parties to private arbitration per the credit agreement.

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Thanks for the replies account was from 2010 from court documents. I dont have any cc agreements from that long ago. Didnt realize this would be a 2 year battle wow. Im not real confident i can win either believe midland had it direct from chase and i know they have another one too that might be coming down the pipe later on wondering if bk might be my best option with this.

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Filing BK stops everything in its tracks. There won't ever be a judgment on your credit report as long this debt is included with your BK and is successfully discharged before Midland secures a judgment against you (several months from now if you do nothing more than file an answer to this lawsuit).

BK is an excellent option if you're facing lawsuits on multiple debts. One of my greatest regrets is not filing Ch7 BK when I had the chance.

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I did it once but not in the right order. I filed a normal answer and in it "reserved" my right to arb. I don't know if there is such a thing but when Citi filed an MSJ I invoked the arb clause. The judge allowed it, although it seems he wasn't required to at that late stage.

I believe the proper way is to file an answer with a motion to compel arbitration and assert lack of subject matter jurisdiction in the answer because of your invocation of arbitration.

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@craneguy

 

Look for a chase agreement from 2009 and before.  They have arbitration in them, and they have survivability clauses.  I can point you to a 2007 agreement if needed.

 

If you haven't answered their complaint, then it is possible to file a motion to dismiss and compel arbitration as fisthardcheese stated above.  Don't miss your deadlines though

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The biggest hurdle is getting the court to order arbitraiton.  After that, it is all a waiting game. Midland will stall and not want to pay for arb, but if they stall too long and the arb closes their case they would be in violation of a court order and you can go back to court and ask the judge to sanction them for failing to follow the order.  It puts them between a rock and a hard place and puts you in the position of leverage.

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@Harry Seaward

When the court grants the MTC and orders arbitraiton, the consumer SHOULD initiate arb.  This makes them compliant with the court order and the arbitration case manager will start to send out notices and bills to the JDB. 

 

Usually, I have found that the JDB will ignore the first notice to pay (or two) and they will wait until the final notice is sent out before taking any action.  That action could include dismissing the court action, contacting the consumer to settle or pay the arb fees.  Generally, at this point most consumers are able to negotiate a mutual walk away.

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@Harry Seaward

 

Oh, sorry, I misread your question.

 

If a defendant files an arbitration initiation but never files a Motion to Compel, then the JDB will simply ignore the contact attempts from the arbitration firm (JAMS) and continue to litigate in court as if arb does not exsist.  Eventually JAMS will close their case for non payment which may or may not be before a judgement in the court case.

 

If the defendant files a Motion to Compel and has already initated with JAMS, I would include copies of the initiation forms and any response from JAMS showing they have recieved the initiation.  Submitting this evidence along with a Motion to Compel may bolster the stance that the defendant is serious about arbitrating the case.  Although I don't believe it is nessecary, since there is plenty of case law to use to show that when an arbitration provision exsist in a contract, then that should be the preferred resolution matter over court.

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@craneguy

If you intend to go the arbitration route, when you file your answer, be sure to deny the court has subject matter jurisdiction on Midland's causes of action.  If you submit to the courts jurisdiction Midland can use this to argue you waived your right to arbitration.

 

The problem I see with a motion to dismiss is the court retains jurisdiction when deciding on the motion to compel and will again acquire jurisdiction once the arbitration decision is rendered.  If you simply rely on a motion to dismiss which is eventually denied, you then have the jurisdiction issue to deal with if you don't deny jurisdiction in your answer.

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Hi Craneguy-

 

I went up against Bursey and Midland by going the Arbatration route.  In the end, they paid me to go away and dismissed with pred.  

 

As you can see from my first post on this board, I was scared and didnt know anything at the time.  With the help of the CIC Members here I beat them in about 9 months. 

 

Take a look at my profile to see a complete history of my posts.  Heres a link to my first post:

http://www.creditinfocenter.com/community/topic/316705-being-sued-by-midland-in-az-should-i-try-to-settle-the-debt-now-or-fight-it/

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