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lawtexlin

Lawsuit filed against me by Midland Funding

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I am currently waiting to be served by Midland Funding. I consulted with an attorney who said Midland will probably settle for about 25% is this something I should try to handle myself. I will be out of a total of $1500 with lawyer fees and settling. Has anyone gotten their case dismissed in TX and if so what did you do. Thanks 

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Depending on the original creditor, arbitration is the only certain way to send Midland packing.

Who was the OC? What was the total amount of the debt? When did you last pay on the account? 

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Credit One, @2189.71  I think the last payment was January 2017. It was sold to two agency's before midland purchased the electronic files. 

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1 hour ago, lawtexlin said:

Credit One, @2189.71  I think the last payment was January 2017. It was sold to two agency's before midland purchased the electronic files. 

Credit One has a carve out on arbitration for actions in small claims.  Texas also has mandatory mediation at a cost of $1000 split between the parties.  Odds are the debt was not sold to two agencies prior to going to Midland. The Sherman Group owns A LOT of debt collection agencies of their own and it merely gets transferred internally to move their profit and losses around.  You need to be prepared to litigate this if getting it into private arbitration is not possible.

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I read the credit card agreement it says that arbitration is not a covered claim if filed by "you or us in small claims court or your states equivalent.  Has anyone heard of a 609 letter?

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1 hour ago, Harry Seaward said:

JDBs can't sue in Texas small claims, so the small claims carve out doesn't apply here.

Justice Court is the equivalent.  Depending on the court at MTC might sneak past but if the law firm fights back it won't.  There is still the mandatory mediation at a wasted $500 to the OP.  

1 hour ago, lawtexlin said:

Has anyone heard of a 609 letter?

Also called a "jack attack" letter.  It is for disputing errors on a credit report.  It does not apply to this lawsuit.

Are you being sued in Justice Court?  If so, what precinct?

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3 minutes ago, Clydesmom said:

There is still the mandatory mediation at a wasted $500 to the OP.  

I have serious doubts a court can force mediation when a party has already filled a MTC.

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I am being sued by Midland Funding at the Justice Court precinct 6. I have not been served yet. They just filed yesterday for alternative service.  I reached out to a local attorney who said they can work on my behalf for $850 and Midland will probably settle for about 25%. 

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3 hours ago, Harry Seaward said:

I have serious doubts a court can force mediation when a party has already filled a MTC.

Not really clear what you don't understand about MANDATORY but what ever. Despite your "doubts" the Judges have been doing an amazing job of ordering mediation before anything else. The reality is the Judge doesn't have to hear the MTC until after the mandatory mediation is completed at great expense.  Justice Court in Texas is WAY different than Arizona you need to understand that.  You need permission from the court to do discovery.  They won't even read that motion or hold a hearing until mediation is complete.  The first order they issue at the pre-trial is for the MANDATORY mediation.  PERIOD.

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2 hours ago, lawtexlin said:

I reached out to a local attorney who said they can work on my behalf for $850 and Midland will probably settle for about 25%. 

You could do that on your own and save $850.  

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4 hours ago, Clydesmom said:

Not really clear what you don't understand about MANDATORY but what ever.

There's a written agreement that says arbitration stands in place of court proceedings, and there's a ton of federal caselaw prioritizing contractual arbitration over court proceedings. The court ordering mediation is a court proceeding. It seems like the court steamrolling a defendant into a pathway in which the court stands to gain is unconstitutional, especially when the defendant has expressed their intent to make use of a contractual right to an alternative dispute resolution. 

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35 minutes ago, Harry Seaward said:

There's a written agreement that says arbitration stands in place of court proceedings, and there's a ton of federal caselaw prioritizing contractual arbitration over court proceedings. The court ordering mediation is a court proceeding. It seems like the court steamrolling a defendant into a pathway in which the court stands to gain is unconstitutional, especially when the defendant has expressed their intent to make use of a contractual right to an alternative dispute resolution. 

And yet Judges deny motions to compel arbitration all the time.  Go figure.  

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33 minutes ago, Clydesmom said:

And yet Judges deny motions to compel arbitration all the time.

And these rulings are reversed on appeal all the time. 

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