Midland Credit Management - Midland Funding I've been threatened with mandatory arbitration by midland... Please Help!!! San Deigo California

Midland collection agency sent a bill to my brothers house a few months back. They stated that they purchased an old cell phone debt for Verizon and were now collecting on it. I didn't ever get the bill because my brother threw it away after reading it to me inadvertantly.

Recently he had UPS send him a registered letter for me that he signed without knowing it was for me. It was paperwork saying they planned to send my case to arbitration within the next month if I did not make provisions to pay this old bill that I'm not even sure is valid - BUT I was scared and called them...I know...BIG Mistake!!

I proceeded to give them banking information to withdraw a payment of $50 per month to pay this off. After getting off the phone and feeling I had just been taken advantage of I opened my Equifax dispute letter and saw that Equifax was unable to verify the charges from Midland.

I then proceeded to close that checking account and do some internet research. I found out that they do not have license to do business in Florida. I've decided to go the debt validation route. What I'm wondering is are they allowed to be collecting a debt in Florida if they do not have a license to do so. I've read the statue on licensing in Florida and am still a bit confused.

Also, this was a cell phone bill - and a 2 year contract (I assume) - but don't they have to show proof that I signed it and that the charges are valid? Lastly, why would they threaten arbitration instead of just proceeding with it? The bill says that I owe 2k+ for just one month of service!!

Please advise. I know I screwed up by calling them so please tell me what I should do next.

Really confused
Jacksonville, Florida
U.S.A.