Q&A: Midland credit management is threatening me with arbitration. What does this mean?
Question by so_adorable21: Midland credit management is threatening me with arbitration. What does this mean?
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.
Best answer:
Answer by Mary B
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.
What do you think? Answer below!
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.