Midland credit management is threatening me with arbitration. What does this mean?

Question

I am trying to get my credit good by working through my debts one bill at a time. One of my accounts got sent ot Midland Credit Management. I spoke with one of the representatives trying to set up a payment schedule. She would not work with me on a 12 month plan. She would only go for 5 months on a higher amount. She then grew upset and pushy and informed me that they would be taking me to arbitration. I then tried to call the company back just to get a mailing address to send them a letter request verification that I have a legal obligation to them.

Answer 1

In my opinion, arbitration is usually biased and the only one that benefit's is the creditor/collector.

If they are pushing for it because there was an arbitration clause in your original agreement, you do have a legal right to refuse arbitration.
If it is in your original agreement - some of what it violates:
House Resolution 5162 which amends Title 15 USC 1601 of the Consumer Credit Protection Act
the Federal Arbitration Act (S. 192)
H.R. 1054 and 3607 that amend the Truth in Lending Act make pre-dispute mandatory arbitration void and unenforceable

Plus, there is "plenty" of case law to back that up.

You might click on my profile and click on the last link I have listed. It is a totally free site and you can ask where to find the arbitration refusal sample letter template (which is also free to use) in the Credit Forum.

Answer 2

That means that instead of sitting before a judge, you will be sitting in a room with a licensed arbitrator that has the same authority as a judge, and WAY more expensive, as well as a representative from the company.

You have a right to have legal counsel present, because you can be your bottom dollar, they will.

This is what you do...start sending them money anyway along with a letter on a 12 month plan. They HAVE to accept it...if they don't...keep all of the checks that they sent back to you.

Send everything by check, certified mail, return receipt required.

That is the best ammunition that you have...you don't even have to talk to those people if they are going to be that unreasonable.

Answer 3

The statute of limitations in CA is 4 years...is the debt older that this? --------------------------------------... deliver Midland a letter by using qualified Mail + return Receipt preserving: consistent with the honest Debt series Practices Act, i'm asking for written validation of this alleged debt, which contains: - a duplicate of the unique signed application/settlement with my signature - a special itemized assertion of ways an alleged $25 stability grew to alter into $a million,4 hundred * do no longer sign your signature on any rfile which you mail to a debt collector. it ought to finally end up on a forged rfile that could be used against you. purely variety the entire call. ----------------- How old is that this debt? there's a statute of limitations for credit card debt, it extremely is the quantity of time that they are in a position to efficiently take criminal action against you for the debt. In CA, this term is 4 years.... in the adventure that your debt is older than the term indexed to your state, they are in a position to no longer defeat you in any court action via fact the debt is time-barred.

Answer 4

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