Pre-Legal Notification Midland Credit Mgmt

[Jackyesp]

Hi. First time posting here. I had found another thread about this but it was rather old and it didn’t help me since I didn’t get the acronyms and I’m pretty inexperienced. Today I got a pre-legal notification from midland credit management about an old cc acct that has gone unpaid since 2013. It says that they’ve made several attempts to reach me which is true they call and send me letter that I always ignore, and that they’re considering forwarding my account to an attorney. Now this account is only a little over $500. Would they really sue me for that ? 

Also, I recently moved and this letter had been sent to my old address. I just got it to my new address today ... It’s dated 2/9/2018 and it says they needed to hear from me by 3/11/2018. So that’s way passed that now... I assume they’ve called me but again I don’t answer unknown numbers. What do I do ? 

[Clydesmom]

44 minutes ago, Jackyesp said:

Now this account is only a little over $500. Would they really sue me for that ? 

Yes, they WILL sue you.

44 minutes ago, Jackyesp said:

What do I do ? 

Send them a debt validation letter and if the creditor is anyone other than Cap1 state that you are electing private contractual arbitration in JAMS for any dispute they might have with you.

[WhoCares1000]

When exactly did the account go unpaid. You are getting very close to the WA State SOL here (unless you moved to WA from another state).

[Jackyesp]

6 hours ago, WhoCares1000 said:

When exactly did the account go unpaid. You are getting very close to the WA State SOL here (unless you moved to WA from another state).

It says on this letter they sent me that the “chargeoff date” is 12/23/2013 and the last payment date was 8/28/2013. It went unpaid because I lost my job then I just didn’t ever start paying it because other bills took priority. I moved to WA state almost three years ago from Texas which is where the debt originated. 

[Jackyesp]

14 hours ago, Clydesmom said:

Yes, they WILL sue you.

Send them a debt validation letter and if the creditor is anyone other than Cap1 state that you are electing private contractual arbitration in JAMS for any dispute they might have with you.

I’m sorry I don’t understand what Cap1 state or JAMS means. Is there an acronym list? Thanks ! 

[BV80]

14 minutes ago, Jackyesp said:

I’m sorry I don’t understand what Cap1 state or JAMS means. Is there an acronym list? Thanks ! 

Cap1 means Capital One.  Clydesmom's sentence meant that if the creditor is a business other than Capital One, write a letter stating that you are electing private contractual arbitration.  JAMS is a private arbitration company used by most creditors.  

Who is the original creditor?

[Jackyesp]

1 minute ago, BV80 said:

Cap1 means Capital One.  Clydesmom's sentence meant that if the creditor is a business other than Capital One, write a letter stating that you are electing private contractual arbitration.  JAMS is a private arbitration company used by most creditors.  

Who is the original creditor?

The original creditor is GE Capital retail bank. It was like a banana republic card. Are there letter templates for something like that. Also would that mean I’m telling them I’m getting a lawyer ? 

[BV80]

5 hours ago, Jackyesp said:

The original creditor is GE Capital retail bank. It was like a banana republic card. Are there letter templates for something like that. Also would that mean I’m telling them I’m getting a lawyer ? 

Go to the Consumer Financial Protection Bureau credit card agreement database and locate your cardmember agreement based upon the year you defaulted on the account.  It's probably in the archives.  Once you download it, you can review it to see if his has an arbitration provision.

https://www.consumerfinance.gov/credit-cards/agreements/

[fisthardcheese]

On 3/18/2018 at 6:41 PM, BV80 said:

Once you download it, you can review it to see if his has an arbitration provision.

(It does)

First thing is first.  Send a letter to midland with a very short and simple letter that says "Per your letter dated 02/09/2018, which I received on 03/17/2018, I dispute this alleged debt entirely."  This will buy you a little time.  They will be required to respond with "verification" (which will just be another little letter) before they can file a lawsuit.

After they send verification, you may even get yet another letter from an attorney with scary looking language and threats to sue.  I would again respond to this letter with the exact same "I dispute this alleged debt entirely".  Again, they should respond with "verification" before they sue (if they send this new letter).

Since your SOL expires in August, I would expect them to sue just before that August deadline.  The Card Agreement for GE (that "fine print" no one reads), says that for "any dispute" you are entitled to private arbitration instead of court.  They list the arbitration firm as JAMS.  This is the name of the arbitration group.  When you read the arbitration clause in the agreement you will also see that "they" (GE and now Midland) will pay ALL of your arbitration costs (The JAMS consumer fee is normally $250, but for you it is $0). While JAMS caps consumer fees, the company must pay a minimum of $5,000 and it can go way up from there.  While suing you in court can cost Midland around $100 to collect $500 from you, going to JAMS will cost them $5000.  This is why it is the better avenue.

Now, if they sue you, you will be required to file a motion in court to ask the court to move this case to arbitration.  I cover all of this information with examples of everything in the arbitration link in my signature below.

(On a side note - feel free to title your dispute letter to them as a "PRE-ARBITRATION NOTICE" in large, bold font at the top.    Thats just for our own amusement on the board here).

[Jackyesp]

6 hours ago, fisthardcheese said:

(It does)

First thing is first.  Send a letter to midland with a very short and simple letter that says "Per your letter dated 02/09/2018, which I received on 03/17/2018, I dispute this alleged debt entirely."  This will buy you a little time.  They will be required to respond with "verification" (which will just be another little letter) before they can file a lawsuit.

After they send verification, you may even get yet another letter from an attorney with scary looking language and threats to sue.  I would again respond to this letter with the exact same "I dispute this alleged debt entirely".  Again, they should respond with "verification" before they sue (if they send this new letter).

Since your SOL expires in August, I would expect them to sue just before that August deadline.  The Card Agreement for GE (that "fine print" no one reads), says that for "any dispute" you are entitled to private arbitration instead of court.  They list the arbitration firm as JAMS.  This is the name of the arbitration group.  When you read the arbitration clause in the agreement you will also see that "they" (GE and now Midland) will pay ALL of your arbitration costs (The JAMS consumer fee is normally $250, but for you it is $0). While JAMS caps consumer fees, the company must pay a minimum of $5,000 and it can go way up from there.  While suing you in court can cost Midland around $100 to collect $500 from you, going to JAMS will cost them $5000.  This is why it is the better avenue.

Now, if they sue you, you will be required to file a motion in court to ask the court to move this case to arbitration.  I cover all of this information with examples of everything in the arbitration link in my signature below.

(On a side note - feel free to title your dispute letter to them as a "PRE-ARBITRATION NOTICE" in large, bold font at the top.    Thats just for our own amusement on the board here).

Thank you so much ! I really appreciate your help. Will be sending that first letter today and will be looping back here as it goes on. They have been calling me everyday... very good to know that my SOL for this one expires in August..

 

Thanks,

Jaclyn 

[fisthardcheese]

2 minutes ago, Jackyesp said:

very good to know that my SOL for this one expires in August..

Don't quote me on that.  I am basing it off what @WhoCares1000 alluded to. I would check your state's SOL and calculate it from your last payment made.

 

[Jackyesp]

2 minutes ago, fisthardcheese said:

Don't quote me on that.  I am basing it off what @WhoCares1000 alluded to. I would check your state's SOL and calculate it from your last payment made.

Gotcha ! Based on texas I believe its correct. Either way I will be moving forward with all the documents you mentioned. thanks !!!

[Goody_Ouchless]

Washington SOL is six years so they have plenty of time to sue. Unless the fact that the debt was charged off while you were still in TX lets TX four year SOL apply, in which case they are already out of luck.

 

[BackFromTheDebt]

Where you in Texas when the 4-year SOL passed?

[Jackyesp]

19 minutes ago, BackFromTheDebt said:

Where you in Texas when the 4-year SOL passed?

Last payment was in mid-2013 and I moved to Seattle in mid-2015 so I guess not unfortunately. 

[BV80]

27 minutes ago, Jackyesp said:

Last payment was in mid-2013 and I moved to Seattle in mid-2015 so I guess not unfortunately. 

That may or may not matter depending upon whether or not TX has a "tolling" statute and how it works.  If you were available for service through a long-arm statute, then the SOL was not tolled and expired in 2017. 

[BackFromTheDebt]

25 minutes ago, BV80 said:

That may or may not matter depending upon whether or not TX has a "tolling" statute and how it works.  If you were available for service through a long-arm statute, then the SOL was not tolled and expired in 2017. 

Yup.

I asked because if you had been a resident of Texas when the SOL happened, OP would be clear.  Now OP has some homework.  Look up the long arm and tolling statutes for Texas, see if you are subject to the Texas or Washington SOL.  

[Jackyesp]

1 hour ago, BackFromTheDebt said:

Yup.

I asked because if you had been a resident of Texas when the SOL happened, OP would be clear.  Now OP has some homework.  Look up the long arm and tolling statutes for Texas, see if you are subject to the Texas or Washington SOL.  

Oh man. Well thats certainly confusing. I tried looking that up but can't really find anything that I can understand nor that seems useful regarding this. The SOL in washington is 6 years which means theyre trying to get me for that since it wouldnt end until 2019 technically. I became a resident of washington in 2016 so theres that. I will start with sending the letter that fisthard cheese mentioned above to buy myself some time and follow those steps. Not really sure what else to do since thisis my first time handling something like this. Thanks. 

[Clydesmom]

1 hour ago, BackFromTheDebt said:

Look up the long arm and tolling statutes for Texas, see if you are subject to the Texas or Washington SOL.  

The OP is going to be subject to the Washington SOL.  The Long Arm statute would only apply if Midland had already sued in Texas.  That suit would have had to been filed prior to the OP leaving the state and they would be subject to the long arm statute and have to return to Texas to defend it.  

The tolling statute would only apply if they were temporarily out of Texas.  Permanently relocating does not allow for that. 

Since the SOL was alive when they left Texas it was still alive on relocating to Washington which means the 6 year SOL applies.  With a default in 2013 Midland is well within the SOL to file a suit.

For a debt that small I would see if they will take a couple hundred bucks as settlement in full and walk away.  

[Jackyesp]

18 hours ago, Clydesmom said:

The OP is going to be subject to the Washington SOL.  The Long Arm statute would only apply if Midland had already sued in Texas.  That suit would have had to been filed prior to the OP leaving the state and they would be subject to the long arm statute and have to return to Texas to defend it.  

The tolling statute would only apply if they were temporarily out of Texas.  Permanently relocating does not allow for that. 

Since the SOL was alive when they left Texas it was still alive on relocating to Washington which means the 6 year SOL applies.  With a default in 2013 Midland is well within the SOL to file a suit.

For a debt that small I would see if they will take a couple hundred bucks as settlement in full and walk away.  

womp womp. well i had planned to send a verification letter today and then go from there... have not been answering their calls. Some of the letters i received before said that I could settle for around 40% less than the full amount but id rather have it lower. Just not sure whats best to do. so complicated! thanks for your help. 

[fisthardcheese]

17 hours ago, Jackyesp said:

womp womp. well i had planned to send a verification letter today and then go from there... have not been answering their calls. Some of the letters i received before said that I could settle for around 40% less than the full amount but id rather have it lower. Just not sure whats best to do. so complicated! thanks for your help. 

It can seem overwhelming the first time you have to deal with this stuff.  Midland may settle for 50% or less, but maybe not.  All you can do is send a letter and ask.  In my letter I would still deny that I owe anything, but that in the interest of  putting this issue to rest, you will agree to a full and final settlement of this alleged debt for $XXX.  Just see what they say.

Filing an arbitration claim against them would most likely get them to settle for $0, but it requires some learning and a lot of paper work.

[Jackyesp]

8 hours ago, fisthardcheese said:

It can seem overwhelming the first time you have to deal with this stuff.  Midland may settle for 50% or less, but maybe not.  All you can do is send a letter and ask.  In my letter I would still deny that I owe anything, but that in the interest of  putting this issue to rest, you will agree to a full and final settlement of this alleged debt for $XXX.  Just see what they say.

Filing an arbitration claim against them would most likely get them to settle for $0, but it requires some learning and a lot of paper work.

Gotcha. Thanks for your help I appreciate it. Since this is my largest debt in collections and I dont plan on doing this again (lets hope). I think I may just do what you suggest above and move on. My question though is for getting it scrubbed from my credit report.. What verbage is best to get them to 'remove it' rather than mark it as paid which I hear isnt ideal since its still on there? Any way I can get it removed so that it can improve my credit score? Thanks. 

[fisthardcheese]

8 minutes ago, Jackyesp said:

Gotcha. Thanks for your help I appreciate it. Since this is my largest debt in collections and I dont plan on doing this again (lets hope). I think I may just do what you suggest above and move on. My question though is for getting it scrubbed from my credit report.. What verbage is best to get them to 'remove it' rather than mark it as paid which I hear isnt ideal since its still on there? Any way I can get it removed so that it can improve my credit score? Thanks. 

Unfortunately there is very little chance of that happening.  You can try, but without extra leverage like using arbitration, there is little to no reason they would agree to remove it from credit reports.

If you get a written agreement that you are settling the account in full for $X, you can always just nit pick the credit report to see if there are ANY errors in their reporting and then continue to dispute it in hopes the CRAs remove it.  That's not as easy to do as it used to be, though.

[Clydesmom]

1 hour ago, Jackyesp said:

What verbage is best to get them to 'remove it' rather than mark it as paid which I hear isnt ideal since its still on there? Any way I can get it removed so that it can improve my credit score?

All you can do is submit a settlement offer of all the terms of your paying.  Midland has a hard line stance against PFD and the chances are slim to none that it gets removed.  

[AnnieB1981]

Whatever came of this Im asking cause I got a letter from mcm to