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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. This protection falls under the Fair Debt Collection Practices Act (FDCPA). You CAN sue creditors, collectors and credit bureaus for violating the FDCPA, FCRA, TILA.

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 - usually for up to $1,000.00 per action. 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. Likewise, you can consult with a consumer law attorney to see if you have a case against the collection agency.

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. A bill collector who has good intentions will not have a problem with this. Even more goes in your favor if the collector knows that you know the debt is old and nearing the expired SOL.

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.

What about my credit history? Will a cease and desist stop them from reporting the debt?

That depends. Not all C&D letters are honored, but if your debt has legally expired (time allowed under the law to collect it) AND it is nearing the SOL for reporting then chances are good you can get it removed. Just because you can instruct a bill collector to stop calling or writing you doesn't mean the item will come off your credit reports. This situation is where people usually decide whether its worth paying the item (restrictively) to get it off their credit.

One thing in your favor though, is that the item must be verifiable. If you can find reasons that the debt is inaccurate, obsolete or contains errors (it happens A LOT), often you can get it deleted from your credit reports. For all of the reasons discussed above, it's always a good idea to question the item to the credit reporting agencies first, before you even consider dealing with the collection agency. If they dont respond to your investigation, the item will be DELETED.

Psst! You can get our custom written cease and desist letters FREE. We have over 40 sample letters for nearly any credit situation.

Related Help for Collection Agency Issues

• Find a consumer law attorney for collection agency issues - nationwide attorneys in your area.

• Debt Statute of Limitations - is your debt expired? find out.

• Collection Agency VOD - validation of debt is extremely powerful if used right.

• Should You Pay Old Collections. The VOD option - know when to use VOD.

• More Sample Letter for Collection Issues - other collection problems? We've got letters for that too.

• Dealing with Debt Collectors - Tips on dealing with when the bill collector calls.

• Avoiding Debt Collectors - you dont have to live in fear or hide from debt collectors.

• Credit Repair by Civil Suit - fix your credit by suing credit bureaus and collectors? You bet!

• Fair Debt Collection Practices Act Help - Find out how the Fair Debt Collection Practices Act protects you.

• Collection Laws by State - check out the collection laws in your state.

Note: Always be cautious when using a cease and desist letter to a collection agency. It's definitely something you dont want to go head first into without knowing what you are doing. It's important to understand what rights the cease and desist affords you and what it does not.

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