Tag Archive for harassment

Using the Cease & Desist Letter: Know the Facts

September 13, 2010 Credit Manager Credit Repair Articles & Resources

CEASE AND DESIST LETTER FOR STOPPING DEBT COLLECTORS

When and when not to use a cease and desist order for debts

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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.

Related Help for Collection Agency Issues

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Debt Collectors make couple’s life a living hell

November 28, 2008 Credit Manager Credit Repair Articles & Resources

The Crabills seem like a nice enough upstanding couple but in the debt collectors eyes they were deadbeats. The Crabills were being hounded relentlessly day and night by CitiFinancial for $20,000.00 in what Citi deemed was an unpaid portion of their refinanced mortgage.

The couple battled the collectors day and night and said the were relentless, especially the calls to their jobs. CitiFinancial eventually sued the couple but they fought back and filed a counter-suit and Citi eventually admitted they were wrong. The Crabills did not owe the balance.

Unfortunately, this type of abuse is all too common. If you are being hounded by debt collectors day and night be sure to use the Fair Debt Collection Practices Act to protect yourself. You cannot be humiliated into paying a debt nor can you be harassed. The FDCPA lays out exactly what a debt collector can and cannot do to you.

You can also turn to a non profit credit counseling agency like Careone to get the debt collectors off your back. If you have some money set aside, you can also negotiate a reduced payoff with the debt collectors either through a firm like Hoffman Brinker or a DIY debt settlement method.

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Fix your credit by lawsuit? Yes you can

October 27, 2008 Credit Manager Credit Repair Articles & Resources, Misc. Credit Repair Articles

If you have decided to take action against a collection agency for violating the FDCPA we have some tips for you. It’s not easy but it is very do-able and with a little education about the process you can limit the risk of getting your case dismissed.

Do you have a case
First off you need to determine what they did and if it qualifies for a law suit? If you were nothing more than inconvenienced a time or two you may lose or the judge may dismiss the case altogether. Suing a collection agency is meant to give you closure and perhaps damages for a violation but too many consumers run into court and only end up annoying everyone because their case is so flimsy. So what is a good case? Just read some of the successful lawsuits filed by the FTC against collection agencies.

They usually involve repeated phone calls at all hours, threats, harassment or intimidation or obvious violations such as refusing to validate the debt at your request yet continuing to try and collect. Those are all good reasons to take action. It’s also important to show what you did before you took that final step and filed your lawsuit. Keeping good records and receipts is paramount to building a good case.

Building the case
Prior to filing your lawsuit you should have asked the collection agency to stop whatever it was they were doing. For example if you told them to stop calling you and they refuse then you need to follow up with a letter to the collection agency certified mail- return receipt requested putting your demand in writing. Then if the agency refuses to stop you have proof that a letter was sent and received by them and yet they continued. Just claiming you told them by phone doesn’t preserve your rights.

If you have witnesses to the harassment then take notarized statements from them to back up your case. If you sent them a validation of debt request certified mail but they never responded then you have the certified receipt with the person’s signature to prove you asked. These paper trails can be the difference between winning and losing so document everything. No matter how many letters, faxes, emails or phone calls you made, take time to include copies of your phone bills, emails or fax confirmations so that you can quickly show the judge the agency’s neglect.

Serving the Collection Agency
Where do you sue?
How much can I get?
What if I want to sue them in federal court
What if I want to sue them in state court
Can I go Pro Se

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