Cavalry hired Attny for collection. What now? Missouri

[Louis]

Missouri resident. OC were 3 credit cards.

I tried to work things out a few years ago but could pay nothing. They sold the debt, a few different times. Cavalry ended up with it. I am now in a better place financially, was gathering funds and trying to prep my tax return to call and make an offer. It took longer than expected. I have since received letters from the attorney for a law firm representing them. 

Questions:
I can sum up the questions as: “What do I do?” but more specifically…..

1- Is this when they truly become litigious, or is this another bargaining tool? 

2- I don’t have the funds to pay the full amount, though I could probably come up with 60%. Do I send letters of DV to buy a little time while I attempt to scrape together more? 

3- Do I go to a credit counselor and let them fight and bargain with the attorney? 

4 - Do I dare attempt an offer letter to the attorney? 

Law firm based in Kansas City, KS but licensed in MO and KS. Will provide name of firm if helpful. Letters summarized with what I understand to be pertinent information.

 

THANKS FOR THE HELP!!!
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1st letter:
Jan 23, 2017
RE: Account balance w Cavalry SPV
Cavalry account No: 111111111 (not real number)
Original Creditor: Citibank, NA
Creditor: Cavalry SPV

The above debt has been referred to our law office….we hereby demand payment of debt (~$4500) as of Jan 23. 

Please direct all phone calls, payments and inquiries to our office. You may call and ask for Jane Doe ext 123.

Notice: This is a from a debt collector and is an attempt to collect a debt. Unless you notify this office within 30 days, etc, etc.

(Please return this portion w/payment to: XYZ Law Group. Amount paid: $_________ )

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2nd letter:
Jan 26, 2017
RE: Account balance w Cavalry SPV
Cavalry account No: 111111222
Original Creditor: Citibank, NA
Creditor: Cavalry SPV

The above debt has been referred to our law office….we hereby demand payment of debt (~$3900) as of Jan 23. 

Please direct all phone calls, payments and inquiries to our office. You may call and ask for Jane Doe ext 123.

Notice: This is a from a debt collector and is an attempt to collect a debt. Unless you notify this office within 30 days, etc, etc.

(Please return this portion w/payment to: XYZ Law Group. Amount paid: $_________ )
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3rd letter:
Feb 10, 2017
RE: Account balance w Cavalry SPV
Cavalry account No: 111111333
Original Creditor: Citibank, NA
Creditor: Cavalry SPV

The above debt has been referred to our law office….we hereby demand payment of debt (~$2300) as of Jan 23. 

Please direct all phone calls, payments and inquiries to our office. You may call and ask for Jane Doe ext 123.

Notice: This is a from a debt collector and is an attempt to collect a debt. Unless you notify this office within 30 days, etc, etc.

(Please return this portion w/payment to: XYZ Law Group. Amount paid: $_________ )

[Louis]

Bump.

 

I thought I had another day but tomorrow is 30 days from their date of Jan 23. So I guess I have to call them to have any way of keeping them from going to court.

 

Does anyone have any sort of guidance??

 

[fisthardcheese]

Do not call them.

Send a letter, certified mail with return receipt requested.  You have 30 days from the day you RECEIVED their letter, not from the date they printed on the letter.  In your letter you only need to state the following:  "I dispute this alleged debt and request verification".  Include the account number they printed on their letters.  After you print and sign the letter, scan a copy of it.  It is important to save a copy of everything you send them.

Send a separate letter for each of these accounts.

This will buy you at least a couple weeks.  The next steps I would take is to initiate an arbitration claim against Cavalry for each of these accounts.  Citibank card agreements contain arbitration, but they also have a tricky so-called small claims exception, so it will make it much easier on yourself if you file an arbitration claim before they can file suit in small claims court.  Cavalry does not like arbitration at all because it is too expensive for them and goes against their business model.  You can read up here about arbitration and why it can eventually make all 3 of these debts go away, but for now, send those dispute letters to buy some time to learn about and get an arbitration plan together.