Carlos28

Pre Legal Letter Midland Funding

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I received a Pre-Legal Letter from Midland Funding today stating that if I do not make a payment by 4/21/19 they may proceed with forwarding this account to an attorney.  The current balance is $3100 and I have not been working for almost 2 years.  The money that I have is all from savings.  I offered $620 to settle the account and they said they want the balance in full. Is there a way I can settle with Midland?

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1 hour ago, Carlos28 said:

The current balance is $3100 and I have not been working for almost 2 years.  The money that I have is all from savings.

Paying Midland should be the least of your concerns right now.  I would not spend any savings on Midland when you are unemployed.  

1 hour ago, Carlos28 said:

Is there a way I can settle with Midland?

Before you consider doing that who is the original creditor they bought the debt from?

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9 hours ago, Clydesmom said:

Paying Midland should be the least of your concerns right now.  I would not spend any savings on Midland when you are unemployed.  

Before you consider doing that who is the original creditor they bought the debt from?

The original creditor is Synchrony Bank. It was a store card for Amazon.

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22 minutes ago, Carlos28 said:

The original creditor is Synchrony Bank. It was a store card for Amazon.

Send them a pre-arbitration letter.  :)

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6 hours ago, Carlos28 said:

The original creditor is Synchrony Bank. It was a store card for Amazon.

Let them sue. DO NOT settle. Synchrony has the BEST arbitration clause of all the creditors. If they sue you can file a MTC arbitration and if approved by the court Midland will drop the entire suit.

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3 hours ago, Clydesmom said:

Let them sue. DO NOT settle. Synchrony has the BEST arbitration clause of all the creditors. If they sue you can file a MTC arbitration and if approved by the court Midland will drop the entire suit.

Will the MTC arbitration automatically be approved by the court? 

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2 hours ago, Carlos28 said:

Will the MTC arbitration automatically be approved by the court? 

There are no guarantees but if you draft a good motion with supporting case law the odds shift in your favor.

If it doesn't getting a judgment in NJ is not near as bad as other states.  They do not add post judgment interest.   You can always offer a lump sum settlement after you get re-employed and back on your feet.

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23 hours ago, Carlos28 said:

What is that? Is there a sample?

It was facetious.  Pre-Legal is a meaningless term used to scare people.  Midland hates arbitration more than any other company, so I figured using their own wording as a scare tactic back would be enjoyable.

You don't have to do this, but you have the option to send a simple letter stating that you dispute the alleged debt and ask for verification.  I like to do this, just to force them to comply with the consumer law which requires them to respond with verification before they are allowed to continue collection efforts.

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On 4/14/2019 at 11:03 AM, fisthardcheese said:

Send them a pre-arbitration letter.  :)

 Should I send the pre-arbitration letter before they sue or after they sue?

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7 minutes ago, Carlos28 said:

 Should I send the pre-arbitration letter before they sue or after they sue?

Neither.  You can send the dispute letter within 30 days of when you received their collection letter.  Everything else will have to wait until they sue you.

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16 minutes ago, fisthardcheese said:
 

Neither.  You can send the dispute letter within 30 days of when you received their collection letter.  Everything else will have to wait until they sue you.

How can I request a copy of my credit card agreement?

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12 minutes ago, Carlos28 said:

How can I request a copy of my credit card agreement?

I don't know whether you could get Synchrony to send it to you or not. Sometimes the plaintiff will attach it to the complaint when the suit is filed; sometimes plaintiff will mail a packet with a few monthly statements and a copy of the agreement.

Most of these agreements are available online in the Consumer Financial Protection Bureau's database. https://www.consumerfinance.gov/credit-cards/agreements/issuer/synchrony-bank/?page=1

When did you default on this account? When was the last time you made a payment? The month and year the account was last in good standing will determine which Synchrony Bank/ Amazon agreement applies. 

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4 minutes ago, Brotherskeeper said:
 

I don't know whether you could get Synchrony to send it to you or not. Sometimes the plaintiff will attach it to the complaint when the suit is filed; sometimes plaintiff will mail a packet with a few monthly statements and a copy of the agreement.

Most of these agreements are available online in the Consumer Financial Protection Bureau's database. https://www.consumerfinance.gov/credit-cards/agreements/issuer/synchrony-bank/?page=1

When did you default on this account? When was the last time you made a payment? The month and year the account was last in good standing will determine which Synchrony Bank/ Amazon agreement applies. 

Date of default 5/2/18. Last payment 4/1/18. The account was in good standing until 5/2/18.

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@Carlos28 The Synchrony/Amazon agreement in the current CFPB database is dated 9/18. It shouldn't be hard to locate the an earlier one in the archive. 

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

Go to the Archived Q2-2018 agreements link and find the Synchrony Bank file. Open the Synchrony Bank file to find the Amazon agreement. I think it's dated 6/18

 

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10 hours ago, Brotherskeeper said:
 

@Carlos28 The Synchrony/Amazon agreement in the current CFPB database is dated 9/18. It shouldn't be hard to locate the an earlier one in the archive. 

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

Go to the Archived Q2-2018 agreements link and find the Synchrony Bank file. Open the Synchrony Bank file to find the Amazon agreement. I think it's dated 6/18

 

What happens if during the arbitration phase I start working? Do I have to pay all of the fees that Midland would have paid?

Edited by Carlos28

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11 hours ago, Carlos28 said:

What happens if during the arbitration phase I start working?

Well, first we would congratulate you. I remind you that using the arbitration strategy outlined in fisthardcheeses's thread usually results in a stipulated (mutual) dismissal of the lawsuit and arbitration claim. At any point after a motion to compel arbitration is granted or a demand for arbitration claim is filed with AAA/JAMS, you can negotiate a settlement. Experienced posters on this forum usually advise you to negotiate from a position of strength when you have maximum leverage. This occurs when the junk debt buyer is invoiced for the fees to begin the arb. It appears that much of the arbitration process between the arbitrator, you and the debt buyer takes place by phone or email. I'm not sure what days/hours telephone hearings can be scheduled to accommodate working participants. Fisthardcheese may know. For a $3100 debt, arbitration would be a very expensive proposition for Midland. 

11 hours ago, Carlos28 said:

Do I have to pay all of the fees that Midland would have paid?

I don't understand your question. The consumer rules of AAA or JAMS limit your filing fees. If you would qualify in your court for indigency to waive court fees, you can apply to the arb forum for the same status. The arbitration clause in the credit cardholder agreement may state that you can request them to pay your filing fee for good reason. The may be other terms in that clause that outline how fees and costs would be handled at the conclusion of an arbitration proceeding. 

I would suggest you follow Fisthardcheese's advice and send (within 30 days from your receipt of that pre-legal letter) your letter to dispute the debt and request for verification. 

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15 hours ago, Carlos28 said:

Do I have to pay all of the fees that Midland would have paid?

No, consumer rules limit your fees to $250 in JAMS and (I think) $200 in AAA.

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3 minutes ago, nobk4me said:

No, consumer rules limit your fees to $250 in JAMS and (I think) $200 in AAA.

And the Synchrony Bank card agreement says you pay $0.  So regardless if you are working or not or any other status, you pay nothing for arbitration.

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On 4/15/2019 at 11:10 AM, fisthardcheese said:

It was facetious.  Pre-Legal is a meaningless term used to scare people.  Midland hates arbitration more than any other company, so I figured using their own wording as a scare tactic back would be enjoyable.

You don't have to do this, but you have the option to send a simple letter stating that you dispute the alleged debt and ask for verification.  I like to do this, just to force them to comply with the consumer law which requires them to respond with verification before they are allowed to continue collection efforts.

I sent a letter in January stating that I dispute the debt when I received the original notice from Midland in January 2019 and until today I never got a response.

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7 hours ago, Carlos28 said:

I sent a letter in January stating that I dispute the debt when I received the original notice from Midland in January 2019 and until today I never got a response.

Oh, really? That's interesting.  Did you send your dispute letter certified, and do you have the green card proving they got it?

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5 hours ago, fisthardcheese said:

Oh, really? That's interesting.  Did you send your dispute letter certified, and do you have the green card proving they got it?

No, sent it regular mail.

I was sued in November 2018 for an account that was still owned by Synchrony Bank (eBay Mastercard) and when that account was sent to a lawyer I sent them a letter disputing the validity of the debt. The law firm responded within two weeks. I sent that letter regular mail as well. Should I send another letter?

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On 4/16/2019 at 3:35 PM, fisthardcheese said:

And the Synchrony Bank card agreement says you pay $0.  So regardless if you are working or not or any other status, you pay nothing for arbitration.

If midland drops the lawsuit when I request arbitration can it sell the debt to another debt buyer?

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