Midland credit prelegal letters and arbitration

[noluyozyah]

 

Hi everyone! 
I have Midland harassing me at this point about a synchrony bank credit card. They sent me 2 pre legal letters so far and honesty don’t know what to do. I read about arbitration but does it really work? The amount owed is around $14,000. How should i proceed? Should i send something about arbitration or should i wait to go to court? Also made the mistake where i did speak to them and they are manipulative, threatening, and use foul language - wrote down everything just in case i need it. 

[BackFromTheDebt]

17 minutes ago, noluyozyah said:

 

Hi everyone! 
I have Midland harassing me at this point about a synchrony bank credit card. They sent me 2 pre legal letters so far and honesty don’t know what to do. I read about arbitration but does it really work? The amount owed is around $14,000. How should i proceed? Should i send something about arbitration or should i wait to go to court? Also made the mistake where i did speak to them and they are manipulative, threatening, and use foul language - wrote down everything just in case i need it. 

If they used such language, it was probably an FDCPA violation. 
 

What state are you in? What are the laws about recording phone calls?  
 

Arbitration often works.  For that large an amount it may or may not work.  That is why having FDCPA claims against them is good.  There have been times I have had FDCPA or similar state law claims and have been able to either get the other side to run away from arbitration or use the combination of arbitration and counter claims to get a mutual walk away. 

[LaneBlane]

Here's a link to a list of credit card agreements for Synchrony so you can read the arbitration provision:

https://www.consumerfinance.gov/credit-cards/agreements/issuer/synchrony-bank/

 

I'd also recommending reading Fisthardcheese's thread, Arbitration Overview and Strategy.  You can find this here:

 

I found this language in the Synchrony agreement for JC Penney cards:  If a party files a lawsuit in court asserting claim(s) that are subject to arbitration and the other party files a motion with the court to compel arbitration, which is granted, it will be the responsibility of the party asserting the claim(s) to commence the arbitration proceeding.

If your agreement has this, Midland would be responsible for filing an arbitration demand.

[noluyozyah]

It was a Gap credit card through synchrony bank. What does that mean? That i would have to pay the arbitration costs? The card was opened sometime in 2014/2015

[noluyozyah]

12 hours ago, BackFromTheDebt said:

If they used such language, it was probably an FDCPA violation. 
 

What state are you in? What are the laws about recording phone calls?  
 

Arbitration often works.  For that large an amount it may or may not work.  That is why having FDCPA claims against them is good.  There have been times I have had FDCPA or similar state law claims and have been able to either get the other side to run away from arbitration or use the combination of arbitration and counter claims to get a mutual walk away. 

State of NY. I didn’t record it but i did note down who i spoke to and what was said. They also answer the call (when i did pick up) without introducing themselves or stating where they are calling from, instead as soon as i or anyone that answers my phone picks up, they keep repeating the name and then ask why we seem frustrated? 

[noluyozyah]

11 hours ago, LaneBlane said:

Here's a link to a list of credit card agreements for Synchrony so you can read the arbitration provision:

https://www.consumerfinance.gov/credit-cards/agreements/issuer/synchrony-bank/

 

I'd also recommending reading Fisthardcheese's thread, Arbitration Overview and Strategy.  You can find this here:

 

I found this language in the Synchrony agreement for JC Penney cards:  If a party files a lawsuit in court asserting claim(s) that are subject to arbitration and the other party files a motion with the court to compel arbitration, which is granted, it will be the responsibility of the party asserting the claim(s) to commence the arbitration proceeding.

If your agreement has this, Midland would be responsible for filing an arbitration demand.

 

It was a Gap credit card through synchrony bank. What does that mean? That i would have to pay the arbitration costs? The card was opened sometime in 2014/2015

 

[BackFromTheDebt]

7 hours ago, noluyozyah said:

State of NY. I didn’t record it but i did note down who i spoke to and what was said. They also answer the call (when i did pick up) without introducing themselves or stating where they are calling from, instead as soon as i or anyone that answers my phone picks up, they keep repeating the name and then ask why we seem frustrated? 

In NY it is legal for you to record your own phone call. There are apps which make it easy to record a call.  It may be wise to record future calls.  
 

I don’t know if it is legal to use a call recorded without the other party’s knowledge in a court case for NY.  You need to check the laws.  Sometimes people here get around that by saying something in the beginning such as “this call may be recorded, right?”   
 

Since you have a record of the call, date and time, with whom you spoke and what they said, that is admissible evidence.  If used in court or arbitration it should be accompanied by an affidavit.  
 

The point of this is to make any potential arbitration as painful for them as possible.  Note that the SOL on FDCPA violations is one year.  Check your state laws.  For example, in my state the SOL for violations are two years, but that can be extended if used as counter claims.  
 

As for arbitration, you are only liable for up to the cost of your filing in most cases.  That is $200 or $250 depending on what type of arbitration you use.  I would recommend JAMS.  
 

At this point it would be wise to accumulate violations on their part.  

[noluyozyah]

4 hours ago, BackFromTheDebt said:

In NY it is legal for you to record your own phone call. There are apps which make it easy to record a call.  It may be wise to record future calls.  
 

I don’t know if it is legal to use a call recorded without the other party’s knowledge in a court case for NY.  You need to check the laws.  Sometimes people here get around that by saying something in the beginning such as “this call may be recorded, right?”   
 

Since you have a record of the call, date and time, with whom you spoke and what they said, that is admissible evidence.  If used in court or arbitration it should be accompanied by an affidavit.  
 

The point of this is to make any potential arbitration as painful for them as possible.  Note that the SOL on FDCPA violations is one year.  Check your state laws.  For example, in my state the SOL for violations are two years, but that can be extended if used as counter claims.  
 

As for arbitration, you are only liable for up to the cost of your filing in most cases.  That is $200 or $250 depending on what type of arbitration you use.  I would recommend JAMS.  
 

At this point it would be wise to accumulate violations on their part.  

Sorry I’m new to this, what does SOL mean? 

[BackFromTheDebt]

2 hours ago, noluyozyah said:

Sorry I’m new to this, what does SOL mean? 

Statute of Limitations.

 

With the FDCPA, you have one year after the violation to sue them.  Not one year after it is discovered, but one year after the violation.  

That gives a bit of an edge to creditors.  They have 6 years from the date of first default to sue you, and if they violate your rights in the process, you only have one year to sue them.  So if they file suit in October 2022, you can't use the FDCPA violation as a counter claim.  

That is why state laws are important.  In my state, there is a 2-year SOL for violations, which cast a wider net than the FDCPA.  Also, if a consumer is sued, there is no limit on counterclaims for violations.  

At some point you may need to check your state laws.  If they sue you in the next few months, there is no issue.  If they haven't sued you soon, you may need to figure out your strategy.  

[BV80]

@noluyozyah

Along with the information provided by @BackFromTheDebt, note that a payment can reset/restart the SOL.  

[noluyozyah]

Thank you everyone! Deeply appreciated-

Update: I received another prelegal letter yesterday- and it says on the top “second prelegal notification” which is a lie… from my very first conversation where i had that manager threaten me until now this is my 3rd notification. Can i use this too?

[BV80]

6 hours ago, noluyozyah said:

Thank you everyone! Deeply appreciated-

Update: I received another prelegal letter yesterday- and it says on the top “second prelegal notification” which is a lie… from my very first conversation where i had that manager threaten me until now this is my 3rd notification. Can i use this too?

No.  A violation is when they mislead or abuse.  And even then the violation usually has to be more than technical.  It must actually cause some kind of “injury”.  Putting “2nd” instead of “3rd” would not be considered either technical or a real injury.

[noluyozyah]

2 hours ago, BV80 said:

No.  A violation is when they mislead or abuse.  And even then the violation usually has to be more than technical.  It must actually cause some kind of “injury”.  Putting “2nd” instead of “3rd” would not be considered either technical or a real injury.

Okay thank you- let’s see what happens after this letter’s deadline ??‍♀️

[noluyozyah]

Just received a letter from their lawyer now , no court date but a letter to reply or pay. Getting nervous about this

[BackFromTheDebt]

You still have the arbitration strategy. 
 

Since you have genuine violations, you can prepare a filing against them for FDCPA violations.  Of course they will counter claim the debt.  So, unless you have a compelling reason, don’t actually file in JAMS.  Just prepare a filing.  

[noluyozyah]

I talked to a lawyer and he said that was a demand letter and to just wait for them to take me to court- and then try to settle with them- if not definitely doing the arbitration strategy- who knows maybe they will back out? ??‍♀️ The law office that sent me the letter has so many lawsuits against them- maybe that will help?

[Bulldoger]

About a year ago they keep sending me those pre-legal letters then they changed to 10% off letters still no court case but still not passed the SOL.. 

update miss read  you got letter from attorney not MCM. I got demand letter form attorney for OC debt in august still no suit. 

 

[shadow99]

I got the pre-legal notifications, then got sued. I have a few more small accounts with them that are just sitting there. One of them has generated a pre-legal letter.  The others nothing.  The one they sued me for wasn't the highest amount.  There seems to be no rhyme or reason to their logic.

I went with arbitration and settled. They had a dedicated lawyer instead of the rent-a-lawyers.  He was one of the most pleasant and straightforward people I've dealt with for JDB's so far.

My amounts have all been under $6K so far though - I don't know what they'd do for one around $14K, but I'd think you could get them to go way down on a settlement without too much trouble if you get the MTC granted.

[noluyozyah]

33 minutes ago, shadow99 said:

I got the pre-legal notifications, then got sued. I have a few more small accounts with them that are just sitting there. One of them has generated a pre-legal letter.  The others nothing.  The one they sued me for wasn't the highest amount.  There seems to be no rhyme or reason to their logic.

I went with arbitration and settled. They had a dedicated lawyer instead of the rent-a-lawyers.  He was one of the most pleasant and straightforward people I've dealt with for JDB's so far.

My amounts have all been under $6K so far though - I don't know what they'd do for one around $14K, but I'd think you could get them to go way down on a settlement without too much trouble if you get the MTC granted.

What is MTC? the attorney’s office they got for my case, is supposedly the worst ? my luck. I’m all for settling but they wouldn’t budge so i stopped answering their calls and now I received a demand letter - oh and the office is now calling me

[noluyozyah]

36 minutes ago, shadow99 said:

I got the pre-legal notifications, then got sued. I have a few more small accounts with them that are just sitting there. One of them has generated a pre-legal letter.  The others nothing.  The one they sued me for wasn't the highest amount.  There seems to be no rhyme or reason to their logic.

I went with arbitration and settled. They had a dedicated lawyer instead of the rent-a-lawyers.  He was one of the most pleasant and straightforward people I've dealt with for JDB's so far.

My amounts have all been under $6K so far though - I don't know what they'd do for one around $14K, but I'd think you could get them to go way down on a settlement without too much trouble if you get the MTC granted.

Also how did you go about arbitration? If you don’t mind me asking what were your steps

 

[noluyozyah]

1 hour ago, Bulldoger said:

About a year ago they keep sending me those pre-legal letters then they changed to 10% off letters still no court case but still not passed the SOL.. 

update miss read  you got letter from attorney not MCM. I got demand letter form attorney for OC debt in august still no suit. 

 

They called me originally and as soon as I answered (the first time they called and as soon as they got the account) the “manager” threatened me with pre legal letter that i was sent one - when they hadnt and they literally just got my account - 

[shadow99]

42 minutes ago, noluyozyah said:

Also how did you go about arbitration? If you don’t mind me asking what were your steps

 

I sent a MTC, a copy of the card agreement and a simple affidavit swearing that the card agreement was the right one to both the attorney & the court.

I showed up at the trial date.  The judge already had my MTC in hand, but I had extra copies of everything in hand.

Midland's attorney opposed the judgement trying to use the small claims exception, even though we weren't in small claims court. The judge didn't buy it, said he thought I had a right to arbitration, and granted the MTC. 

The attorney wanted to speak to me in the hallway.  He was very pleasant and polite, explaining how arbitration was expensive for both me and Midland, and that I could negotiate a settlement with either him or directly with Midland. I nodded and said I understood, then went on my way with his contact info. We both agreed that communication via email was best for us both - which it definitely is for me.

I then filed with AAA, paid the $200 fee, and sent the documents to the attorney - via email - along with an offer to settle both the court case and the arbitration for $0 out of pocket.  The opposing attorney emailed back within 24 hours with a settlement offer that stated exactly that - I sent a signed copy back along with evidence that I had dismissed the arbitration.  The attorney sent a dismissal form to the court, and we were all done.

I did not have any violations.  The amount owed was less than what they would have spent on filing fees with AAA.

Because AAA had not yet reviewed the case, they refunded the $200 I had paid.  I don't think the JAMS fees are refundable. However, I do like JAMS better.  They were faster the one time I used them to respond with a bill for the other side and they gave me a real person that was very responsive to my questions, even though the JDB drew them out for well over a year without paying the fees or negotiating with me for a settlement. 

In that case, the judge finally got tired of them constantly saying they'd arbitrate then not doing anything, and finally opposing the MTC, that he told them they better do something before the next court date.  That also was settled for $0 for a mutual dismissal.  I've won 3 times for cases involving anywhere from $2-6K.  My upcoming one is for more than the your current case.  I am sure I'll have to come out of pocket to get that one to go away, but I'm hoping for between 30 & 50% of the total.  They agreed to arbitration, it's been continued for a few months, and I'm gathering funds.

I figure I'm going to rinse & repeat until 7 more small ones are either settled or the statute of limitations expires. 

Everything you need to know is on this site and people are very helpful explaining the rules, paperwork, etc.  Everything I used so far, I learned here.  Make sure you read the master arbitration thread several times and read over other people's stories. 

[noluyozyah]

3 hours ago, shadow99 said:

I sent a MTC, a copy of the card agreement and a simple affidavit swearing that the card agreement was the right one to both the attorney & the court.

I showed up at the trial date.  The judge already had my MTC in hand, but I had extra copies of everything in hand.

Midland's attorney opposed the judgement trying to use the small claims exception, even though we weren't in small claims court. The judge didn't buy it, said he thought I had a right to arbitration, and granted the MTC. 

The attorney wanted to speak to me in the hallway.  He was very pleasant and polite, explaining how arbitration was expensive for both me and Midland, and that I could negotiate a settlement with either him or directly with Midland. I nodded and said I understood, then went on my way with his contact info. We both agreed that communication via email was best for us both - which it definitely is for me.

I then filed with AAA, paid the $200 fee, and sent the documents to the attorney - via email - along with an offer to settle both the court case and the arbitration for $0 out of pocket.  The opposing attorney emailed back within 24 hours with a settlement offer that stated exactly that - I sent a signed copy back along with evidence that I had dismissed the arbitration.  The attorney sent a dismissal form to the court, and we were all done.

I did not have any violations.  The amount owed was less than what they would have spent on filing fees with AAA.

Because AAA had not yet reviewed the case, they refunded the $200 I had paid.  I don't think the JAMS fees are refundable. However, I do like JAMS better.  They were faster the one time I used them to respond with a bill for the other side and they gave me a real person that was very responsive to my questions, even though the JDB drew them out for well over a year without paying the fees or negotiating with me for a settlement. 

In that case, the judge finally got tired of them constantly saying they'd arbitrate then not doing anything, and finally opposing the MTC, that he told them they better do something before the next court date.  That also was settled for $0 for a mutual dismissal.  I've won 3 times for cases involving anywhere from $2-6K.  My upcoming one is for more than the your current case.  I am sure I'll have to come out of pocket to get that one to go away, but I'm hoping for between 30 & 50% of the total.  They agreed to arbitration, it's been continued for a few months, and I'm gathering funds.

I figure I'm going to rinse & repeat until 7 more small ones are either settled or the statute of limitations expires. 

Everything you need to know is on this site and people are very helpful explaining the rules, paperwork, etc.  Everything I used so far, I learned here.  Make sure you read the master arbitration thread several times and read over other people's stories. 

You are very helpful thank you! What does MTC stand for? Also if you don’t mind sharing the one amount thats higher than mine how much is? (Not to ask for specifics just trying to see if i would have any shot at settling either $0 or way less) would you mind sharing what happens with that as you have updates? I’m surprised the arbitration has been going on for a few months? Aren’t they supposed to answer within a specific time frame or else they loose?

[noluyozyah]

2 minutes ago, noluyozyah said:

You are very helpful thank you! What does MTC stand for? Also if you don’t mind sharing the one amount thats higher than mine how much is? (Not to ask for specifics just trying to see if i would have any shot at settling either $0 or way less) would you mind sharing what happens with that as you have updates? I’m surprised the arbitration has been going on for a few months? Aren’t they supposed to answer within a specific time frame or else they loose?

Also what do you mean by violations?

[shadow99]

9 hours ago, noluyozyah said:

You are very helpful thank you! What does MTC stand for? Also if you don’t mind sharing the one amount thats higher than mine how much is? (Not to ask for specifics just trying to see if i would have any shot at settling either $0 or way less) would you mind sharing what happens with that as you have updates? I’m surprised the arbitration has been going on for a few months? Aren’t they supposed to answer within a specific time frame or else they loose?

Violations usually mean FDCPA or TCPA violations - you can find more information about those by googling or searching this site. Everything else I knew to do is also on the site.  I suggest you start with the pinned threads, especially the master arbitration thread, and continue reading through individual people's experiences.  I always pick the ones with lots of responses because those are more likely to continue reporting until they have a final result.

My big one is north of $16K. I don't think I have a shot at $0, but I'm hoping for $8K or less.

MTC - Motion to Compel Arbitration.

I've had 3 cases with arbitration either granted or agreed to by the attorney.  Case 2, I detailed above.  Case 3 was with the same attorney as Case 1 and they settled with me as soon as I sent them the MTC, before the first court date.

The 1st case is detailed on this site.  It was my first experience with it and I think it was their first too.  They also used rent-a-lawyers to represent them, so they weren't present in court. Every court date had a different judge preside over the case and a different attorney show up. Here's how it went.

Date 1 - rent a lawyer says, I don't work for the firm, I haven't seen the paperwork, but I have no problem continuing the case for 3 months to let you get started. Case continued. In my state, if the opposing side agrees to arbitrate, the MTC is not granted. It's not denied either, it's just kind of on hold.

Date 2 - I have now submitted the paperwork to JAMS & JAMS has sent the attorney a bill.  Rent-a-lawyer says he knows nothing about it.  The judge says lets give them more time to see the paperwork.  If they don't do anything by next time, you can argue for us to grant the MTC even if they agree.

Date 3 - They claim that they haven't done anything because I haven't paid the bill. They mistakenly thought I was supposed to pay their $1500 case fee.  The judge looks at my receipt and the paperwork for JAMS and explains to them. The lawyer says he is not part of the firm, has no authority to agree to anything, and asks for the case to be continued - again.

Date 4 - They object to the MTC on very shaky grounds. Basically, that their own contract has egregious costs to them - which they can't claim. This rent-a-lawyer is smart enough to not read through the objection in court. I'm sure this judge has already read it because I don't have to say hardly anything.  He says at this point if the plaintiff does not make a meaningful effort to start arbitration by the next court date, he will strongly suggest that the next judge dismiss the case. And that as a point of fact, he wanted to dismiss it that day.  This rent-a-lawyer is almost apologetic.

Date 5 - Before this court date, they contact me and start the settlement negotiations at 50%. I respond with, I'll be willing to dismiss my case if you dismiss yours for $0 payment for me.  I also agree not to pursue you for the $250 arbitration fee that you owe because the contract states you will pay all of my costs up to $1000. This was between me & the paralegal.  In about a week, the attorney emails me to say they accept and to send me the settlement agreement.

I think continuation 1 was 3 months, 2 & 3 were 2 or 3 months, 4 was 1 month and 5 was 4 months - so that's about a year.  It was also started during Covid, so before I ever went to court, it was continued several times, but I wouldn't count that.  All in all, from the time the lawyer contacted me until it was resolved was about 2 years.