Midland Pre-Legal Notification

[ra0724]

So I know this topic is on here hundreds of times probably, but each case is so different so I had to ask for myself. I'm trying to research and educate myself on the matter, but please excuse my ignorance because this is all so new to me.

So I received a letter from Midland Credit Management with the title "Pre-legal notification". It reads "Midland Credit Management has tried to reach you regarding this account. This letter is to inform you that Midland Funding LLC is considering forwarding this account to an attorney in your state for possible litigation." "If we don't hear from you or receive payment, Midland funding LLC may proceed with forwarding this account to an attorney. Midland Credit Management would like to make an arrangement with you to resolve the above- referenced account using the following: 

1) Biweekly payments as low as $25.00 until balance is paid in full.

The opportunity to pay the listed above does not alter or amend your validation rights as described in our previous letter to you. .... Once you have completely fulfilled the above payment arrangement, Midland Credit Management, Inc. will completely release you of the obligation. We are not obligated to renew this offer."

This is the first letter I've received from them though. I mean I'm really bad about checking my mail but this specific letter came in a fancy UPS envelope so I for sure would have noticed that if they sent it to me previously. And also my balance that I owe is over $5000, so $25 biweekly seems too good to be true. 

They've been calling me multiple times a day from various phone numbers but I've never picked up a call from them. The reason I know it's them is because I look up the phone numbers every time they call. According to everything I've read it seems like everyone says not to answer their phone calls and/or if you do just play dumb about the debt and ask for validation. I also read that if they take you to court they have little evidence against you due to the fact that they do not have the original agreement, copies of statements, terms and conditions of the acct, etc. Pretty much that the only info they have is your name and info and the amount you owe.  

However, looking at the letter I received I am seeing that they have my original account number from which I owe my debt (Citibank), along with my balance and last paid date (01/10/2018). Is it typical for them to have this information? Typically I would just start making payments but after reading about this company I'm very nervous about doing that now. I definitely owed money to Citibank, I won't deny that. But the fact that it has transferred over to this company is what worries me now because it sounds super shady. I just don't know what my next step should be?

Any advice is greatly appreciated!!

[Harry Seaward]

Nothing shady about it at all. Midland is a national corporation that buys the rights to collect defaulted debts. 

When was the last time you paid on the account? What state are you in? 

[ra0724]

On 5/9/2018 at 11:25 PM, Harry Seaward said:

Nothing shady about it at all. Midland is a national corporation that buys the rights to collect defaulted debts. 

When was the last time you paid on the account? What state are you in? 

It says the last paid date was Jan 2018. And I'm in CO. It's just that everything I've read about this company has me kind of freaked out so I don't know what my next steps should be. They are even calling my family members which is crazy to me.

[Harry Seaward]

Seriously.  There's nothing shady about what they do.  Their entire business is buying debts and collecting them.  They know what they are doing and will have no problem proving to the court that they own your debt if they sue you.  They are calling people you know because they want to get paid and they can't get a hold of you.

With a last payment of Jan 2018, this debt is still within statute of limitation (SOL) and Midland can legally sue you to recover this debt.  They sue people over $300 debts so for $5,000, I would expect them to sue you at some point.

The good news for you is Citi has an arbitration clause in their agreements, and arbitration is Midland's Kryptonite.  Sometimes there's a hitch with Citi debs due to a "small claims" exemption in the Citi arbitration clauses which precludes parties from using arbitration in cases brought in small claims court.  The good news for you is that attorneys are not allowed in Colorado small claims court.  Midland cannot sue you without an attorney, so the small claims exemption will not apply to your case, and you should have no problem sending Midland packing with arbitration should they decide to sue you.

Of course, you can always pay them if you want to. If not, lay low and wait for them to sue you and then follow the arbitration strategy discussed in the Arbitration Forum. https://www.creditinfocenter.com/community/forum/199-arbitration/

[fisthardcheese]

Since this is your first letter from Midland, the first thing I would do is send a letter back disputing their alleged debt. (the "DV letter").

The next thing I would do is answer the next call to my cell phone, record the call, and state that I am revoking any prior permission to auto-dial my cell phone.  After stating this, no matter what they say next, I say "thank you" and hang up.  I will then answer every call I can to my cell phone after this notice is given to them. I record these calls. I say hello a few times (waiting for the computer's delay) until they come on the line.  I then hang up.  If you get many of these calls still, I might state again that I revoke any permission to auto-dial my cell phone.

If they eventually sue you, you will have 2 good options. Assuming you have several phone calls after asking them to stop auto-dialing, you may be able to get an attorney to deal with your case for no up front costs to you.  If not, you can use the Citi Card Agreement's arbitration clause to ask the court to move the case to arbitration, which Midland really does not like.