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Pre-Legal Notification by Midland Credit Management, Inc. - Capital One Bank (Florida)

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Hi everyone,

I recently received a "Pre-Legal Notification" letter from Midland Credit Management, Inc. informing me about a balance owed to Capital One. The letter says,

"After numerous attempts to contact you regarding this account, Midland Credit Management, Inc (MCM) will transition your account into the attorney review process after 02-12-2019."

I have never dealt with anything like this before and would greatly appreciate help from someone who has any past experience and knowledge in what to do in this situation. I have read some of the other posts about sending a DV letter, waiting for a response, and using an arbitration clause but I'm not sure I fully understand what to do. I'm a student and don't have a lot of money, much less the amount they're asking me to pay. I would like to avoid paying this if possible and to have the Midland account removed from my credit report.

I would greatly appreciate any reliable advice that you can offer me on what to do in this situation and thank you for your time in advance. 

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1 minute ago, Onebiotech said:

I have read some of the other posts about sending a DV letter, waiting for a response, and using an arbitration clause but I'm not sure I Underfully understand what to do.

You need to send a DV letter immediately.  What is the date on that letter and when did you receive it?  As for arbitration that will not be an option for you when Midland sues.  Cap1 removed arbitration from their card agreements almost 10 years ago so do not focus on that.

2 minutes ago, Onebiotech said:

I would like to avoid paying this if possible and to have the Midland account removed from my credit report.

 Understandable but Midland IS going to sue you.  If they get a judgment FL allows wage garnishment, bank levy and they can seize a car.  There have been creditors that have taken that step.  There was one poster here a few years back who came to the boards because the JDB had a judgment, waited until they paid the car off then seized it via levy.  Do not assume they won't try to collect.

Send the DV letter to buy another 30-45 days and start studying how to defend the suit on the boards here.

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4 minutes ago, Clydesmom said:

You need to send a DV letter immediately.  What is the date on that letter and when did you receive it?  As for arbitration that will not be an option for you when Midland sues.  Cap1 removed arbitration from their card agreements almost 10 years ago so do not focus on that.

What should I include the in the DV letter? The date on the letter is 01-18-2019 and I received it about two weeks ago.

 

7 minutes ago, Clydesmom said:

Understandable but Midland IS going to sue you.  If they get a judgment FL allows wage garnishment, bank levy and they can seize a car.  There have been creditors that have taken that step.  There was one poster here a few years back who came to the boards because the JDB had a judgment, waited until they paid the car off then seized it via levy.  Do not assume they won't try to collect.

Send the DV letter to buy another 30-45 days and start studying how to defend the suit on the boards here.

At the time of this writing, I am not employed and do not have a lot money in my bank account. I own an LLC, but it is not yet profitable. Also, I am still paying off my car.

Is there any way they can harm my company? Also, is taking this to court the best option or should I call and try to reach an agreement?

Thank you for your timely response.

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If this is a true LLC and the debt is personal (not part of the LLC) then the only thing they can do is get a charging order to garnish any profits from the LLC. This is especially true if the LLC has no value if you were removed and the business was sold. Beyond that, the LLC is a separate legal entity from you.

Most debt collectors would rather not deal with charging orders because they are very tricky and in some states, can cause tax issues.

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