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JesusJones

Midland Credit "pre legal letter" - threaten arbition inorder to settle?

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Hello everyone, Sorry if this is repetitive …

I have searched the past threads on this board and am still a little unsure about how to go about this … Im in Illinois, I got a "Pre-legal notification from midland credit" for a synchrony bank (paypal credit) amount of $2,200 … I would like to just settle and get it off my back … But I'm reading conflicting statements  about calling them, not calling them. etc …

I have settled debt in the past; Called them and told them I could pay half if they forgave it … and it usually worked … but Midland seems a little different and more hard nose (from what I am reading online) … My thought was to call them and ask them to settle relaying to them that I would like to just get it over with and avoid arbitration (which I am willing to file with JAMS per the original card agreement) … My question is, is this a good strategy? … Should I basically threaten arbitration? or should I not mention it?... and just file, and if I do file, Should I do it before they sue me or after? … Should I call them at all, or do it all in writing? (I'm confident enough speaking with them over the phone, being careful of what I say, etc...)

Any advice would be appreciated … and again, sorry if this has been asked 100's of times before.

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I also know to ask for forgiveness letters contingent on settlement amount - when I have done that in the past … they would usually email it me, then I would pay.

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Threats of arbitration, like threats of bankruptcy, can be ignored.  

Normally we don't recommend preemptive arbitration.  This may or may not be a time when you would want to do that.  Or at least prepare for it.  

Why not call them, make an offer, and see what happens?  Maybe they have been hard nose with others, but that doesn't mean they will be hard nose with you.  Every case is different.  

If the nice approach doesn't work, then you have to get creative.  

One possibility -- fill out the JAMS forms for arbitration for this case, and also a sample MTC.  Send them to Midland, along with a letter.  Explain that you have not filed in JAMS, but are prepared to do so.  If they are willing to accept 50% , you will not file in JAMS.  If they do not accept, you will answer any summons with an MTC and you will file in JAMS.  When they see you already have the paperwork, if they are smart, they will settle.

One caveat -- often places have a "policy".  The policy may be self-defeating, but the employees have no choice but to follow the policy.  An employee who follows the policy, even if it loses money for the company, will rarely get into any trouble.  An employee who breaks the policy, even if it saves them money, is far more likely to get into trouble.  

Which means, if you threaten them with an MTC and a JAMS filing if they don't settle and instead sue on this case, you need to be willing to follow through.  An MTC and JAMS filing will cost you very little money, but will cost you time and stress.  You have to know for yourself what you are comfortable with.  My comfort level may be very different from yours.  

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Thanks man ... For anyone who is curious how the process went.

I called and settled - wasnt near as bad as what I was reading online ... Balance was $2300 ... they first offered me payments over 12 months for the full balance ... I offered $900 in a lump sump ... They countered with $1600 ... Told them I couldnt do more than 1k - but I could do that today .. they came down to 1450, If I could pay right now ... I offered to pay $800 now, $200 a month over the next 3 months ... they accepted and its done ... I owed the debt, I was always planning on paying it around this time. (when I got my tax return) Just fell behind from a cut in the household income (which i explained to them)... process was painless. 

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