RescueToaster

Needing help with Midland Funding lawsuit in MN

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Send a letter tomorrow CMRRR noting the call and the agreement that was reached regarding discovery to confirm the condition. That way you have something in writing about the phone call.

It might be a strange language to you but you are going to have to learn it real quick. Realize though that to you, this is one case and your whole world right now. To them, this is but one of thousands of cases and really, the one that is throwing sand into a otherwise well oiled machine. You have already done more than 97% - 98% of the people this happens to so make sure to finish the job and odds are, you will throw enough sand in the gears to either make them take a settlement that is to your advantage or just walk away and spend some time on easier targets.

Also, arb might be a good option but anyone who has been in a fight will tell you, always have a plan B or plan C to fall back on. Is that one statement enough to prove account stated? Are they allowed to consider the terms of the bill of sale exempt from discovery procedures? Are the persons who supposedly signed those affidavits really who they say they are? Are you ready to get on the stand and say that you do not recall this debt if or when they put you on the stand? You need to do all that stuff too.

Also, are you putting together some funds for a decent settlement should you reach that with the attorney? I have already mentioned what is decent. They offered 80% today but you can bet the longer this goes on and the harder you are to fold, the more that will go down and yes, you are allowed to settle anytime before the judge (or jury) renders a verdict.

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2 hours ago, BV80 said:

Thank you!

Considering that you are from a "pocket docket" state, you obviously know and understand the rules.

Recently, another poster was sued in a "pocket docket" state, and a member replied with:

"You cannot answer when no lawsuit has ever been filed."

Yeah, pocket docket is really a weird process but as far as MN is concerned, it is not going away anytime soon. What is really sad is that the paperwork they give you when you are served includes a statement that says you have been sued in big bold underlined letters and the default rate is still 97% - 98%. Even the OP thought this was false until I threw up all the red flags.

BTW, this is a good read from 2008. At least things have changed a little for the better.
http://www.startribune.com/state-laws-give-edge-to-debt-collectors/27314379/

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Getting this to arb is probably the best thing to do.  AAA will not deal with Midland and if the court orders the parties to arbitrate, that will put midland between a rock and a hard place. They will have no choice but to dismiss or be in violation of the court order.

I would file a motion to compel arbitration to ask the court to order the case to private arbitration.

 

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No, there is no need to file anything with the courts yet. If the OP wished to follow the arb route, they can state in the discovery documents that they want to do so and then include, as part of their discovery packet, the MTC arb they will file with the court should the case get into court. The OP will also probably have to start the arb process.

The real issue though is that I bet this attorney has never seen anyone request arb and the MN courts are not without their reservation to private contractual arbitration. After all, it was the MN AG that put NAF out of business.

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32 minutes ago, WhoCares1000 said:

No, there is no need to file anything with the courts yet. If the OP wished to follow the arb route, they can state in the discovery documents that they want to do so and then include, as part of their discovery packet, the MTC arb they will file with the court should the case get into court. The OP will also probably have to start the arb process.

Agreed.  See my previous reply on the steps I would take to start the arb in AAA and notify the other side.

35 minutes ago, WhoCares1000 said:

The real issue though is that I bet this attorney has never seen anyone request arb and the MN courts are not without their reservation to private contractual arbitration. After all, it was the MN AG that put NAF out of business.

I get that, but a court's reservation should be removed by the authority of the Supreme  Court stating that as a right, arbitration in a contract should be honored above all.

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Sorry for the late response as usual, had family over for a long Memorial weekend and had to house and entertain them.

So far I've gotten pretty much every document together and have been reading up on Arbitration and the AAA, it would certainly be nice if I could push the bill on Midland. 

@WhoCares1000 I will have to borrow money from family if it comes to that.. I tend to brood when I know I owe someone money, especially banks. I haven't heard back from VLN yet, I assume they must have been on break through the holiday or are swamped. I'm thinking at the very least I might want some help with this and if it's free, all the better!

I'd like to settle this before it goes into the court system but that's all up to Midland, I suppose. If they take me far enough I'll do what I need to do, and honestly, telling people I don't recall owing this debt wouldn't be an issue because it's technically the truth, unless they can prove to me otherwise, which is what my first defense is based on. I see why you say I need backup plans though.

@fisthardcheese Thank you for all of your help and involvement so far. I love the MST3K / Space Mutiny name.  I've been reading up arbitration and I think that it sounds like a decent idea as long as I can effectively use it.

@debtzapper I am and will be available from now on. Can I help you with something?

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If VLN does not call back (and they might not, after all public defenders are so swamped in MN right now, they cannot even deal with criminal cases properly), then here would be my reply:

1) I would request an accounting of the account from 0.

2) I would request the terms and conditions of the bill of sale. They might say that those are private records under law but then I would mention to them that you intend to file a motion to compel discovery once this gets to court.

3) I would mention that a search through your personal records have produced nothing in regards to the debt and that you are currently looking through your bank records.

4) Mention the arbitration clause, have an application filled out for AAA, and state that you intend to file with AAA and will file a motion to compel arbitration once this gets to court.

5) Make an offer between $300 and $500 to settle this and make it go away.

That should be enough to move discovery forward which is what the system wants. At some point, there will be a meet and confer as the courts demand it. In the meantime, continue looking through bank records as you can be sure they will demand those anyways and continue to look for those employees who signed the transfer affidavits to see if they are real people.

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Apparently, VLN is only open on Monday, Wednesday and Thursday from 9am to 1pm, so I'm going to try that tomorrow, I'd be a happy man if I could score someone to back me up in person through this.

I'm fairly certain that I do not have any old bank account or credit card statements anymore, is that going to negatively effect me? I've moved twice within the past 2 years and I lost quite a lot during the moving's

I'll start on that AAA form tonight, doesn't hurt to have it ready I suppose! It would be interesting if some of those people didn't actually exist on those affidavits..

Thank you! 

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I doubt VLN can supply an attorney for this. Public Defender funding is cut to the bone.

If you remember what bank you dealt with during the years of this debt, you can go to them and for a fee, obtain back statements and review those. You will be asked to do that anyways so not unreasonable.

As for non-existing people signing affidavits, if you look around these boards, you will find that it happens more often than you think. This is a well oiled machine designed to churn out default judgements. You are slowly becoming the sand in the gears that brings the thing down.

Finally, I would Google "CFPB Consent Decree Midland" and find out what the recent one says they have to provide in a lawsuit and review what they sent. You can demand anything in the decree that was not sent to you as they are required to have that documentation. If they claim to not have the documentation, file a complaint with the CFPB that they are not following the consent decree.

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13 hours ago, RescueToaster said:

Apparently, VLN is only open on Monday, Wednesday and Thursday from 9am to 1pm, so I'm going to try that tomorrow, I'd be a happy man if I could score someone to back me up in person through this.

You will not get a public defender for a civil suit.  As @WhoCares1000 said funding is cut to the bones and public defenders are only provided in criminal cases where jail time is a possibility.  For misdemeanors with no jail you cannot get a PD.  

You can try Legal Aid and see if you qualify or see if there is a law school at a college nearby.  Often they offer low or no cost clinics to offer advice on how to handle a case but will not represent you as they are law students.

 

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15 hours ago, Clydesmom said:

 

You can try Legal Aid and see if you qualify or see if there is a law school at a college nearby.  Often they offer low or no cost clinics to offer advice on how to handle a case but will not represent you as they are law students.

 

No.

 Law school clinics do in fact represent clients.  Law students are supervised by faculty members as here at the Univ of MN Consumer Law Clinic.

https://www.law.umn.edu/course/7030/consumer-protection-clinic

At some law school clinics, such as the Univ of Wisconsin Consumer Law Clinic, students  represent clients at every stage of the process.

https://law.wisc.edu/eji/clc/

Consumer Law Clinic students participate in all aspects of the clinic's work. They interview and counsel clients, investigate and evaluate potential cases, draft complaints, briefs, motions and discovery requests, prepare counsel to take and defend depositions, argue before courts, and participate in trials. Student work on legislative and administrative advocacy projects includes drafting and analyzing proposed legislation and administrative rules, delivering testimony at public hearings, and meeting with government officials. Students also prepare and deliver presentations on issues of concern to low-income consumers at community centers.

 

 

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10 hours ago, debtzapper said:

No.

 Law school clinics do in fact represent clients.  Law students are supervised by faculty members as here at the Univ of MN Consumer Law Clinic.

https://www.law.umn.edu/course/7030/consumer-protection-clinic

At some law school clinics, such as the Univ of Wisconsin Consumer Law Clinic, students  represent clients at every stage of the process.

https://law.wisc.edu/eji/clc/

Consumer Law Clinic students participate in all aspects of the clinic's work. They interview and counsel clients, investigate and evaluate potential cases, draft complaints, briefs, motions and discovery requests, prepare counsel to take and defend depositions, argue before courts, and participate in trials. Student work on legislative and administrative advocacy projects includes drafting and analyzing proposed legislation and administrative rules, delivering testimony at public hearings, and meeting with government officials. Students also prepare and deliver presentations on issues of concern to low-income consumers at community centers.

 

 

That is unique to MN then.  Two states I have been in they will give advice but not represent in court.  It may also be unique to that law school.

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13 hours ago, Clydesmom said:

That is unique to MN then.  Two states I have been in they will give advice but not represent in court.  It may also be unique to that law school.

That is not "unique" to MN or to WS.  A Google search turns up link after link of law schools that represent clients in their consumer law clinics:

https://www.google.com/?gws_rd=ssl#q=consumer+law+clinic+law+schools&start=0

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I plan on going in to VLN some time this week if possible (they have very small windows of availability) I also have had a lawyer help me with a few issues in my past that I was considering calling up just to see what he thinks. Hell, I might as well call the UMN Law School as well. I'm hoping that they can point me to new resources if they themselves can't help out. 

@WhoCares1000 Is there anything in particular I would be looking for with my bank statements? Payments from my old bank account (which I haven't had for close to 3 years now) towards the account that Midland now claims to own? I'd guess the last transaction from my bank account to my old Best Buy account would be around  3 or 4 years ago now.

I've said it with every post (and I'll continue to do so) but I really appreciate the help everyone's offering!

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On 4/16/2016 at 6:26 PM, RescueToaster said:

Hi there, thank you for taking the time to check this out,

Last week I received a 'summons' from Midland Funding LLC by a courier for a debt they say I owe them. Just today they sent another copy of the 'summons' in a letter that came through the mail (USPS).

After quite a few Google searches which linked me to a lot of  posts on this forum I decided to start my own thread since I believe my issue may be a bit different than the others I've read through. If it isn't something totally 'new', I apologize but I could use help still!

 

Some more of the story:

Last week (April 7th) a courier delivered a few documents stapled together (not in an envelope) to my father and after looking through it, it appears to me to be a fake summons. My father told the courier that I was here but that I was sleeping and accepted it himself.  I'm not sure if it matters, but my father and I share the same name, is that something I can use in my favor? After looking things up, it seems that that may have been a big no no for them to give the document to anyone but me,  or am I mistaken?

I also say 'fake summons' because after checking ( https://www.law.cornell.edu/rules/frcp/rule_4 ) I noticed a few things missing on the 'summons'. There are no signatures anywhere except Midland's attorney, nor do I see a court seal. It also doesn't state the time I must defend myself, so there are at least 3 things missing that supposedly MUST be on it. 

 

After some more researching, I've realized that this may just be them showing me their intent if I do not follow their 'plan'. It also seems more like a bully tactic to scare me into calling them, confessing all of my sins while they record it to use it as evidence to collect on this figure they've come up with which is larger than the limit on any card I've had.

So now, I guess what I'm asking is what should I do next? So far, I haven't done anything. I've read through these documents and quite a few similar issues on here,  and now I'm here looking for help! The documents say I have 20 days to respond (so, from April 7th, which would give me until the 27th, 11 days from today) if it IS legit.

 

Should I try to get free legal help? I cannot really afford an attorney let alone the debt Midland says I owe them, but I've heard Minnesota courts are some of the worst for the consumer (IE: me!) in the country. I don't want to have the deck stacked against me when I'm trying to get my life back in gear. I'll save the full sob story, but I've dealt with addiction and I'm starting up school this fall and this issue is really distracting me from continuing on with the next stage in life. I really hope this isn't as big of an issue as my mind is making it, but trying to stay positive is getting very difficult.

 

Anyway, any help at all would be greatly appreciated! If there's anything I've left out that could be of help,  please let me know so I can provide it.

 

Thank you again for taking the time to read this,

Jeff -

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hey there... im new to the threads so i copy pasted this here, becasue it looks like you can use the info....

 I saw your question and this is the same thing kind of that im doing, but im sending dispute letters to the Credit Reporting Agencies first and then i will send letters to the 3rd party collectors. I have my templates ready to go for the cra's i just got to get them notorized before i send them certified mail...as far as your question...you should right the 3rd party (midland) have it notorized asking for a valid contract with them that you signed. cuz from what i understand when the creditor discharges the debt to a buyer/collectionagency like midland the the creditor not only loses rights to that claim but now you get to ask midland where it is that you contracted with them?... because your initial contract was with a creditor...not with midland...

 

A contract requires transparency and agreement of the parties involved. Did you sign with your wet ink signature making a new contract with this third party? By the way when the collection agency sends you an invoice and you pay a dollar on it, then you just contracted with them....

 

Send them a notorized letter of "request for production", certified mail and send it directly to their lawyer at that collection agency, in that letter you get to ask for 1. copy of a contract signed by both parties therefore binding both parties... (remember you didn't sign a contract with midland)  Number 2. ask for "VALIDATION"(the actual accounting) of the debt not verification. 3. have them verify their claim against you: (sworn affidavit or a hand signed invoice in accordance with The Uniform Commercial Code) and 4. Please provide me with a true and certified copy (not photocopy) fo the Original Note (credit agreement), under penalty of perjury and with unlimited liability and confirm that this Note, has never been sold. Please also confirm the name of the individual who is the duly authorized representavie from your company, who has carried out due diligence under the Mondy Laundering Crontrol Act of 1986 and what actions s/hehas taken in relation to this account.

 

Once a debt is discharged by any party, that party looses prior claim to it. remember its all based on contracts. lender or creditors claim their interest in the money that was lent to you. If they recover that money, by selling the debt to a third party or they retract their interest in the contract by discharging the debt, they lose all claims to it over you.

 

this is exactly what happens in 3rd party debt collection (midland). the party you originally contracted with sold your debt, giving up their claim to it. and now a third party is trying to compel you to contract with them on a debt that had absolutely no valid enforceable authority in law, but only if you assert your rights and dispute the claim.

 

ive also attached a link, that i found if you are representing yourself in court and its scripted perfectly:

 

 

 

BTW im in the process of disputing my cra's first then i'll send the letters out to the collection agencies. disclaimer, i am not a "professional" just a neighbor.

 

the 3rd party has no rights over you! they are trying to compel you to sign somehting or say that you owe them the m oney, don't do it, they have to prove to you that you contracted with them! and they can't do it, because you didn't contract with them.

 

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18 hours ago, janus said:

hey there... im new to the threads so i copy pasted this here, becasue it looks like you can use the info....

 I saw your question and this is the same thing kind of that im doing, but im sending dispute letters to the Credit Reporting Agencies first and then i will send letters to the 3rd party collectors. I have my templates ready to go for the cra's i just got to get them notorized before i send them certified mail...as far as your question...you should right the 3rd party (midland) have it notorized asking for a valid contract with them that you signed. cuz from what i understand when the creditor discharges the debt to a buyer/collectionagency like midland the the creditor not only loses rights to that claim but now you get to ask midland where it is that you contracted with them?... because your initial contract was with a creditor...not with midland...

 

A contract requires transparency and agreement of the parties involved. Did you sign with your wet ink signature making a new contract with this third party? By the way when the collection agency sends you an invoice and you pay a dollar on it, then you just contracted with them....

 

Send them a notorized letter of "request for production", certified mail and send it directly to their lawyer at that collection agency, in that letter you get to ask for 1. copy of a contract signed by both parties therefore binding both parties... (remember you didn't sign a contract with midland)  Number 2. ask for "VALIDATION"(the actual accounting) of the debt not verification. 3. have them verify their claim against you: (sworn affidavit or a hand signed invoice in accordance with The Uniform Commercial Code) and 4. Please provide me with a true and certified copy (not photocopy) fo the Original Note (credit agreement), under penalty of perjury and with unlimited liability and confirm that this Note, has never been sold. Please also confirm the name of the individual who is the duly authorized representavie from your company, who has carried out due diligence under the Mondy Laundering Crontrol Act of 1986 and what actions s/hehas taken in relation to this account.

 

Once a debt is discharged by any party, that party looses prior claim to it. remember its all based on contracts. lender or creditors claim their interest in the money that was lent to you. If they recover that money, by selling the debt to a third party or they retract their interest in the contract by discharging the debt, they lose all claims to it over you.

 

this is exactly what happens in 3rd party debt collection (midland). the party you originally contracted with sold your debt, giving up their claim to it. and now a third party is trying to compel you to contract with them on a debt that had absolutely no valid enforceable authority in law, but only if you assert your rights and dispute the claim.

 

ive also attached a link, that i found if you are representing yourself in court and its scripted perfectly:

 

 

 

BTW im in the process of disputing my cra's first then i'll send the letters out to the collection agencies. disclaimer, i am not a "professional" just a neighbor.

 

the 3rd party has no rights over you! they are trying to compel you to sign somehting or say that you owe them the m oney, don't do it, they have to prove to you that you contracted with them! and they can't do it, because you didn't contract with them.

 

Everything you just said is completely incorrect.  I'm not sure where you got your information, but I would suggest reading this board for quite a while to get a true understanding of how the laws work.

A debt buyer like Midland does legally have a right to attempt to collect a debt that they purchase from any original creditor.  They do not have to make a new contract with you, their contract is with the creditor who holds your note.  Secondly, you can ask for anything you want but they are under no obligation to provide anything you request to you or even respond at all.  

I don't know why you would bother notorizing a letter to the CRAs.  A simple dispute letter sent CMRRR is all that is ever needed to dispute something on your credit reports.

Disputing something on your credit reports is only dealing with your credit reports.  It will have no effect on a JDB's collection attempts or prevent them from continuing collections including suing you.

EDIT:  Oh, I now see that you have posted this garbage on many threads here.  Reported for spam.

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It looked wrong when first reading it, but I have to admit I it twice :p

@janus I appreciate your attempt to help, but it appears you're a bit misinformed with what you should be doing. If you're really going through something like I am, I think you need to get some help so you don't put yourself in a bad position to deal with. Good luck with everything!

 

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@RescueToaster Good luck with the fight!  I have learned so much from this forum and I am grateful to have found it.  I am in a battle with Midland as well so I feel your pain.  Lucky for you, you are still at the point where you can settle and make this go away, especially if the debt is legit and you truly owe the money.    My input is not legal in nature, only my real world experience and advice.  

@WhoCares1000 is right on.  You can try some of these arguments and back Midland into a corner and force them to take action.  They might sue, they might go away.  If they do sue they will be paying more to file than they paid for the debt, with no guarantee that they will win the case.    The recent CFPB consent order puts them in a position to follow certain rules and requires them to have account level documentation in order to proceed with collection cases.  If (and thats a big IF) they are following the rules now they wouldn't be pursuing a collection if they cannot verify the debt and provide chain of ownership.  If they have everything they are supposed to they will not hesitate to sue.   But if it does get to that point push them to provide every shred of documentation you can think of.  

Don't wait until its too late to talk settlement.   I know that's not easy but it is a better alternative then losing a judgement and having your wages garnished or bank account levied for the full amount plus court costs and lawyer fees.  That is a nightmare!  Try to scrape up as much as you can while you are fighting on the other end.  $300-$500 is likely the magic number as @WhoCares1000 has stated.  But don't be afraid to offer less and try to save more because you really never know.  Just keep these few things in mind: 

  • If they accept your settlement offer do not send any money until they send you something in writing stating the agreed upon amount will be accepted as "Payment in Full".
  • Pay the settlement offer as one lump sum, not in payments.  Don't agree to a settlement before you have saved (or borrowed) the money.     
  • You can get a cashier's check,  money order or prepaid debit card to pay them (send it certified mail, return receipt receipt requested - and keep a copy of the check or money order).
  • Don't give them any access whatsoever to your checking account, bank account, debit card etc. 
  • Don't believe promises or agreements that they don't document on paper or digitally.  They are never, never, never acting in your best interest.  

 

 

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