Credit Union's Breach of Contract

I refinanced an auto loan with a Credit Union (nationwide) in FL and they didnt pay off the existing loan (which I paid off myself almost a year later), raised my interest rate for not receiving the title, and then charged it off as an unsecured loan to my credit when I refused to pay the new interest due to their error. It has been over a year since I paid them a dime and I now have my title free of lien (for paying the original loan off myself) and their attorney liason has sent me a couple of notices threatening to sue (but never did). He completely blows up when I tell him I want to talk to a lawyer. This has completely ruined my credit.

I now live in LA and have spoken with some attorney's who have reviewed my documents and want to sue for breach of contract and fraud. BUT... They want $1500 to file in Federal Courts and said we'd wait to see if it's going to get thrown out for jurisdiction issues. Otherwise, they said this would be a contingency case. Understandably, no one wants to work for free....

$1500 is alot to pay just to find out if I'm filing in the wrong jurisdiction. I am maybe interested in how to go about maybe filing in small claims court....
Question is: Is this FL or LA?

Any suggestions?