CEASE AND DESIST LETTER FOR STOPPING DEBT COLLECTORS When and when not to use a cease and
desist order for debts
If a debt collector claims you owe them money,
you are allowed by law the cease the debt collector from further
contacting you. Many people misuse a cease
and desist letter and believe that once they send it, the collection
agency may never contact them again. This is not true. Not only
can the debt collector contact you one last time to advise you of
their intent, if any, but they can still sue you. Using a cease
and desist letter can be very useful but it doesn't solve all collection
issues.
If you don't owe the debt then using a cease
and desist letter will be affective, however if you owe the
money, the debt collector can still come after you via lawsuit.
Here are the steps you should take when implementing a cease and
desist order to a collection agency.
Top priority. Do you owe the debt?
If you feel the debt is not yours or is expired
legally under the SOL- statute of limitations, then the
cease and desist letter will be very affective. If the debt collector
receives the letter from you stating that the debt is legally expired
and to cease all communications then you probably wont hear from
them again. The collector isn't going to waste time going after
you if they know you know the debt is expired. Pouring good money
after bad isn't their aim. If they continue to contact you after
you have sent the cease
and desist letter then you could bring damages upon them
for harassment.
What law allows a cease and desist order to a collector? The Fair Debt Collection Act - FDCPA
protects you from being harassed from a collection agency. If a
collection agency violates the FDCPA they can be sued. Additionally
you may report them to your Attorney General, the FTC
and the Better Business Bureau. Basically, you can make it very
hard on them for a violation but just be sure you have a case. You
may collect up to 1,000.00 for damages.
When a cease and desist letter is not appropriate If a debt collector is sending you a bill
and its an accurate bill, your cease
and desist letter probably wont do much. Sure, they may
leave you alone for a month while they gather evidence of the debt,
but chances are pretty good that they haven't gone anywhere. If
the debt is accurate and you do owe it, your best option would be
to try and settle the debt
for pennies on the dollar and an improved credit rating.
Collection agencies are in this business to make a buck, so you'd
be surprised how often they DO settle debts for less and promise
to remove the item from your
credit reports as well. They want money pure and simple. If
you do work with a collector on settling the debt, be sure everything
is done in writing and sent certified mail. If you agree to pay
the debt and they agree to accept less, then they should have no
problem putting it in writing for you. If they refuse, chances are
they will not abide by their promise to remove
the debt from your credit reports.
The Validation of Debt angle Before you assume the debt is valid and pay
it, be sure it is. Hundreds of thousands of debts are sold everyday
but that doesn't mean its a legitimate debt. Before you pay a dime,
be sure to check
that the debt is valid. Decide if the balance is accurate as
well as any applied fees or collection expenses. If the debt collector
cannot prove the debt is valid then you have a good case for ceasing
and desisting them from further contact. If they cant prove
to you the debt is valid then they certainly wont be able to prove
it to a judge in small claims court.
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