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Second pre legal notification midland credit management


MLH
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Well this weekend ended in this lovely letter brought over by my neighbor, our home addresses are almost exactly the same. The letter had been opened.  I know this OC removed their listing from my credit reports and was replaced by midland. I’m not denying the claim. but with that said I’m in a horrible financial mess. I’m unemployed and have other creditors after me. Midland has sent a copy of statement and I received a letter over a year ago from OC saying they sold my account to Midland. My purpose of asking for help here is to ask at this point should I call midland before the cut off date of 10-16 n see if they would be willing to take less? How much less? I have no money and I drive a 2006 vehicle with 220k miles.  I am on a deed with joint tenancy with survivorship with my mother with plenty of equity here in South Carolina.  I’m looking to achieve the very best n cheapest outcome . I’m a nervous wreck, not eating or sleeping. I’ve looked for legal help in my area but found only attorneys that work for the other side. I did speak with a Bankruptsy attorney but the cost of it was just too much and I don’t want to loose my home. If anyone here has a sample letter or advice , I sure would appreciate it . TY IN ADVANCE! 

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Credit one bank has arbitration clause but it contains small court clause

"Claims Not Covered: Claims (whether brought initially or by counter or cross-claim) are not subject to arbitration if they are filed by you or us in a small claims court, so long as the case remains in such court and only individual claims for relief are advanced in the case." 

Unfortunately, SC has Magistrates Court a.k.a. small claims which allow attorneys. So arbitration is not an option. Buy your dealing with a debt buyer they still have to prove they own the debt and may not have the proof. 

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 "I’m not denying the claim "  Why not were you part of the purchase between Credit One Bank and MCM are you 100 percent sure they bought your account? That said I never seen a second notice pre legal notification with wording that says if you don't setup a payment plan they will continue prelegal process.  At this point I would back burner MCM pre notices and concentrate on your PRA case ..They have sued and MCM is just using scare tactic for now they are not threat. 

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Thank you for your response . I dug thru last years boxes of mail. I try to keep things. Low n behold I did find a letter from credit one telling me they sold my account to them June 2020. Why it took so long (mcm) to act on it must of been Covid. Anyways I spoke with a attorney. He told me to draft a letter to appeal to their forgiveness hardship program this is what it says .  I’m hoping it buys me time. Along with the letter , I enclosed a prior report of my disease from my doctor and cdc and fda reports on the effects of the Covid -19 shot to people like me with meneires disease. 

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1 hour ago, Michele Hunter said:

 I’m hoping it buys me time. Along with the letter , I enclosed a prior report of my disease from my doctor and cdc and fda reports on the effects of the Covid -19 shot to people like me with meneires disease. 

You are approaching this from the wrong angle.  Midland only cares about your ability to pay the debt.  From what we have seen anecdotally on the boards when someone requests a hardship waiver of their debt Midland wants pay stubs (if still working), proof of disability, and/or bank statements tax returns showing poverty level income or lower/insolvency.  They do not care about your personal opinion pieces on whether or not you should take the shot(s).  A letter from your physician stating that you are disabled and will not be able to return to work is an absolute necessity.  Failure to provide the needed proof means they deny the hardship waiver.  ALL you need to send initially is a letter stating you are requesting a hardship waiver of the debt due to long term unemployment and disability.  Midland should/will respond telling you what documentation they need to approve the request.

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Ok well ty I guess I’ll have to wait n see. I can prove I’m out of work. I can prove poverty level thru tax returns. I can prove no money in bank accounts.  The doctor I had is in a state over 1000 miles away.  I needed to answer the letter of pre litigation. Once a lawyer is involved it would be worse. So I’m taking a chance.  The worst case scenario for me would be judgements with lien on property.  

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Note that I am not an attorney, and I don't know SC law.  I also don't know the details of your situation that well.

That being said, it seems unlikely that they could put a lien on property to which your mother has the title.  If the property were in your name, that is another matter.

As was pointed out earlier, at this point you need to see if you can get the medical exemption.

The arbitration strategy has been brought up, which seems to apply to some but not all of your accounts.

One strategy is to figure out what you need to do to become "judgement proof".  

What that means is, find out what the laws are in SC as far as seizing bank accounts,  etc.  See what needs to be done to make sure they can't come after you.

If you do work at some point in the future, realize that SC is one of the few states that does NOT allow wage garnishment.  So if they get a judgement against you, it makes it harder to get your money.  

That being said, your bank accounts could be seized.  There are restrictions on this, so you really need to look into this at some point.  

Some people have suggested interesting ways to guard against bank accounts being seized, such as using out-of-state accounts, and using multiple accounts each with a small amount of money, or getting as much money into cash etc as possible.  

 

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Thank you very much, I have not sent that letter. After sleeping over it, I realize that it would be opening up a “Pandora’s Box” I now see how motion of discovery’s could come into play.  I am on the deed, with survivorship as joint tenancy.  My bank accounts are spread with very very little money in them. I have a joint account with my 15 year old daughter 240.00 , I have a individual account that has 700.00 , I have a joint account out of state that services my LOC (line of credit) checking account that my husband (whom has no affiliation with my home whatsoever). The only thing in that account is enough money each month to pay the LOC. Which is currently in debt of 750.00.  Then I have a joint account (checking) with my husband that his paycheck goes into each week. That account pays for living expenses and is drain within days after paying bills for the week.  So I do know that South Carolina has a exemption of $5,000 liquid assets. So I’m thinking I am covered there. My main issue is will they be able to force the sale on the house if they are granted a judgement of 2,600.00 (almost 2,700.00) .  I less advised by a Bankruptsy lawyer that my home has too much equity in it that even my state /federal homestead exemptions would stop the forcing of sale.  Especially chapter7. But they wanted 4,000 to do the Bankruptsy of chapter13 and because of the equity the repayment of all my creditors would be around75%.  And on top of that repayment it would be a additional 4,000.00 for attorneys fees.  So it would mean that I’m paying almost if not more money to claim bankruptcy than to settle each one myself.  So in closing I feel like I’m stuck dealing with each lawsuit as they come individually.  I’m so overwhelmed by this .  So thank you for your info. I wish there was some quick fix but it doesn’t seem in my favor. 

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I did place a one lumps sum offer to a JBD attorney (portfolio) of 350.00 on a 1500.00 debt . I just saw that my case status says pending/ADR.  Now what the attorneys are doing with that I have no idea.  I feel like I want to call them and push for a result before it’s forced into trial but it fears me for I have no idea what that will cause?  I can’t open anymore Pandora Boxes.  I’m at stand still with this suit. 
 

 

the above statements are about a 2nd prelitigation letter from midland credit. They definitely own the account because I found a filed letter from the OC , saying they own the account. It states in the letter I must call by 10/16 , to avoid them forwarding my case to a attorney.  Again, I’m at a loss for fear of opening Pandora’s Box if I call. And if I don’t call, they will get another attorney and the costs will increase. 
 

“I'm not liking this legal game of cards”

Ive never been a gambler 

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Sad to say, there is no quick fix. 

I hope you can get the medical hardship through Midland.

Other than that, it does appear one of your cases is eligible for arbitration.  Doing arbitration these days is less difficult than you may think.  That is the OTHER thread, though.  To be brief, it appears they are expecting arbitration.  We can help you through that.  Enough of us have done arbitration so that it is pretty much a situation of following what others have done in the past.  That should take care of that OTHER account, if you want.

The main question is what to do about this account.  

 

I think you should call Midland about this other account.  Ask them for information about the medical hardship.  Have them send the forms.  Send in copies of whatever you send for the other account.

Here is my reasoning:

If you ask for the medical hardship forms, they will almost certainly delay sending the account to an attorney.  

Look at it from the POV of the person handling the case.  This person has a job to do, and will be penalized if he doesn't do this job.  The job is to do SOMETHING with the account by 10/16.  This person can either change the status of the case, or else send it to an attorney.  If you ask for the medical hardship forms, this person can change the status of the case to pending medical hardship.  If you don't, her job is to send it to an attorney.  

Which is better for you?  One of these has at least a chance of avoiding a law suit.  The other choice means a law suit is about 100% certain.  

This is NOT a situation of lying low and hoping they don't notice.  That isn't going to happen.  

 

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Okay understand. On the Midland case , what if I send a hardship request? No medical. I was told by another here yesterday I would have to find a doctors proof. I moved to South Carolina 6 years ago from the north. In the North I was under a Doctors care since 1994 when I was first diagnosed with Meneires Disease. I haven’t seen a doctor since I’ve moved but I have all the medical records since then. I don’t have health insurance. So in order to stop any more financial hardship what if I wrote a settlement offer of 30% lump sum to Midland hardship program. I drafted another letter I’ll enclose.  Will this change my account status and hold off on any attorney? Please advise. 

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So there it is…. I don’t even know what address to send it to, I looked it up online and they have several thru out the US.  Then to whom do I address it to. Do I call them first? Do I tell them what I’m doing? I have very little time left now. 

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32 minutes ago, MLH said:

So there it is…. I don’t even know what address to send it to, I looked it up online and they have several thru out the US.  Then to whom do I address it to. Do I call them first? Do I tell them what I’m doing? I have very little time left now. 

I would call them to get the proper address. 

I don’t know if it is a good idea to make a settlement offer now. If they approve a medical hardship they will simply write it off. I honestly don’t know what they would do for financial hardship that doesn’t meet their medical requirements.  They might take a settlement 

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I definitely will n thank you very much for your advice.  Do you think they will put a hold on my account with a small offer like this? 
what if they ask me questions on the phone about what I’m doing? 
I heard it’s not good to communicate with them nor tell them what your offering.  They can reject it immediately. What should I say ? Please?

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27 minutes ago, BackFromTheDebt said:

I would call them to get the proper address. 

I don’t know if it is a good idea to make a settlement offer now. If they approve a medical hardship they will simply write it off. I honestly don’t know what they would do for financial hardship that doesn’t meet their medical requirements.  They might take a settlement 

Agreed.  

Also, MLH, in the letter your wording states "payment towards debt in full".  This is not necessarily the same as "settled in full", which is what you're seeming to look for, yes?

 

25 minutes ago, MLH said:

I definitely will n thank you very much for your advice.  Do you think they will put a hold on my account with a small offer like this? 
what if they ask me questions on the phone about what I’m doing? 
I heard it’s not good to communicate with them nor tell them what your offering.  They can reject it immediately. What should I say ? Please?

They may, they may not.  

They very likely WILL ask you questions over the phone, if you call them asking about medical hardship. 

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4 minutes ago, Amerikaner83 said:

Also, in the letter your wording states "payment towards debt in full".  This is not necessarily the same as "settled in full", which is what you're seeming to look for, yes?

This is an extremely important point,

The way the OP has it written, it might possibly be interpreted as a PARTIAL payment, with the rest of the balance due.

Any settlement offer MUST clearly state that any amount is a settlement for less than the full amount, and the settlement payment would be taken as payment in full, with a zero balance afterwards.  

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18 hours ago, Clydesmom said:

You are approaching this from the wrong angle.  Midland only cares about your ability to pay the debt.  From what we have seen anecdotally on the boards when someone requests a hardship waiver of their debt Midland wants pay stubs (if still working), proof of disability, and/or bank statements tax returns showing poverty level income or lower/insolvency. ... A letter from your physician stating that you are disabled and will not be able to return to work is an absolute necessity.  Failure to provide the needed proof means they deny the hardship waiver.  ALL you need to send initially is a letter stating you are requesting a hardship waiver of the debt due to long term unemployment and disability.  Midland should/will respond telling you what documentation they need to approve the request.

 

Quoting this because this is worth re-reading.  This is exactly what you're wanting to do...and how you do it (Bolding is mine) :)

 

Also, it looks like you already have an address for Midland...?  

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Ok I will re-word my offer. And that was just a draft to get advice . So use “settlement “ instead of payment. Got it. The address I got was online but I’m not sure if it’s the right one.  Should my wording in this be set up differently? I’m old and I have very little education. Do any of you have a sample that I can go by? I just want to pay it in full with the help of my family member at a discounted amount.  

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Oh God… How the heck should I be wording this? Should I mention I’m working with other creditors ? Should I mention I’ve called about Bankruptsy? Should I mention I’m working with non profit financial advisers? I’m a wreck! 

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5 minutes ago, MLH said:

Oh God… How the heck should I be wording this? Should I mention I’m working with other creditors ? Should I mention I’ve called about Bankruptsy? Should I mention I’m working with non profit financial advisers? I’m a wreck! 

See below:

19 hours ago, Clydesmom said:

ALL you need to send initially is a letter stating you are requesting a hardship waiver of the debt due to long term unemployment and disability.  Midland should/will respond telling you what documentation they need to approve the request.

 

Short sweet and to the point.  No need to take up more than half a page in this thing:

 

Dear Midland,

Due to long-term unemployment and disability, I hereby request a hardship waiver of this alleged debt.  I am prepared to offer documentation supporting this hardship; please let me know what I need to provide and I will do so.

 

34 minutes ago, BackFromTheDebt said:

Any settlement offer MUST clearly state that any amount is a settlement for less than the full amount, and the settlement payment would be taken as payment in full, with a zero balance afterwards.  

The more I think about it, the more that this letter should simply be a hardship waiver request, and not a settlement offer at this stage. 

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38 minutes ago, MLH said:

Should I mention I’m working with other creditors ?

NO!  Midland needs to believe they are your priority if you want the best terms.

39 minutes ago, MLH said:

Should I mention I’ve called about Bankruptsy?

No.  They hear that threat thousands of times per week and it is empty until you actually file.  They won't take it seriously until they are served by the BK court.

39 minutes ago, MLH said:

Should I mention I’m working with non profit financial advisers?

NO.  Do not volunteer information.  As has already been said short and to the point.

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Please advise on this edited letter.  I have printed out my unemployment determination and status with South Carolina Employment and workforce. Should I send it to them with this? Or should I wait? 
when I call to speak with them about retaining this address to send to them should I tell them what it is for and what the amount I am trying to settle for? 

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Well, you should ONLY send this letter if you are certain you don’t qualify for medical hardship. 
 

I am torn as to whether to mention the amount right now. 
 

I once settled with FNBO.  I called their person to discuss a settlement. She asked what I was willing to offer. I gave a lowball offer of 20% ($1000 on a $5000 balance).  She said the lowest she was able to go was 25%. ($1250). I jumped in it. 

I know of some cases where people let the other side make the offer first.  Sometimes the other side offered 60-80%; sometimes as low as 10%. 
 

Maybe leave off the dollar amount for now.  Maybe see what forms you will need, and what plans they can offer you.  It may be better for you.  

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I agree, I am not attorney or professional negotiator. Here is how I see it, MCM has not sued (no attorney cost). I would not put in a settlement offer at this point as you may get the whole debt forgiven by MCM or they may reply with a lower number than $800. Just state your in hardship and would like the debt to be forgiven an see what happens I got 25% and my jdb case was in court. They may ask for 0-25%.

 

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