Receiving letters or calls from a debt collection agency can be a stressful and nerve-wracking experience. In the federal law there are strict rules regarding how debt collectors are allowed to do business.
The Fair Debt Collection Practices Act (FDCPA) defines these rules, which ensures that the consumer is protected from illegal or unethical behaviour. Unfortunately some debt collectors decide to violate their rules by resorting to harassing and other unfair practices.
What is a Cease and Desist Letter?
A cease and desist notice to the debt collector is a formal written notice that instructs a debt collection agency to cease contacting you regarding the debt. It also informs the debt collector of your rights under law and also that you’re ready to pursue legal actions if required.
You can send an cease and desist letter in order to ask the collector of your debt to stop contacting you. The intention of the letter is to officially demand that the debt collection company refrain from contacting you regarding the debt you have to pay.
When to Use the Cease and Desist Letter
If you’ve been the victim of harassing messages or letters from a collection company, the cease and desist letters could be a useful tool to have in your arsenal. The letter serves as a formal demand that the collector stop communication with you regarding an unsubstantiated debt. It is important to be aware that cease and desist letters could have ramifications, possibly leading to a lawsuit for debt collection in the event that the debt collector decides to escalate the issue.
Before you decide to take this step you may be thinking about other options like talking to the collector, paying off the debt in the event that you owe it or filing an action to the Federal Trade Commission or your state’s attorney general’s office.
The components of a Cease and Resist Letter
A cease and desist notice must be concise, clear and professional. It should contain:
- Personal information about you.
- The address of the debt collector as well as account number.
- A clear request to the collector to stop any contact with regard to the debt.
- Referrals to the FDCPA and any other pertinent laws.
- A request for debt verification, if necessary.
It is important to be aware that although a cease-and-desist request can stop contact, it doesn’t erase the debt, or stop the collector from taking legal action.
Sample Cease and Resist Letter Template
Here is an example cease and desist template that can be adapted to suit your specific needs. Make sure you send it through a certified mailer with a return receipt to ensure that the debt collector gets your letter.
What to Expect Following the Sending of a Cease and Deist Letter
If a debt collector has received the letter from you, they are obligated under federal law to cease contact with you. However, they can contact you once more to inquire about your debt. They are also able to engage in other ways, for instance, filing an suit.
The debt collector could contact you by phone or mail to (1) notify you that they will not longer try to collect the debt and (2) reply to your request. If they reach you for a different reason they could violate the FDCPA and could be legally liable for penalties.
Debt collectors may also put the credit score with negative marks, and also pursue other methods of settling the debt they typically employ. However, if you sign a cease and desist notice the debt collection company cannot harass you with calls and letters as a way of making you pay.
What happens when debt collector doesn’t comply cease and desist letter?
If the collector does not adhere to your cease-and desist order and persists in contacting you, keep a record of each communication. These records could be used as evidence should you decide to submit a complaint to the Federal Trade Commission, the Consumer Financial Protection Bureau or the attorney general’s office in your state. You might also wish to consult an attorney or an attorney or reliable credit repair companies.
Any communication that does not inform you of the next steps could cause the debt collector to criminal and civil liability. A trusted expert’s advice early in the process could help you defend yourself against debt collectors, if they’re not in compliance.
Pros and Cons of Using the Cease and Desist Letter
Sending a cease-and-desist letter could be an extremely risky proposition since there are only two possibilities for outcomes. One is that a debt collector chooses to not pursue your debt completely. It is evident that this is the ideal scenario.
The second possible result is that the debt collection firm might decide to pursue an action against you. Therefore, you don’t have to make a decision completely in a blind way. It’s possible that pursuing the debt may not be worthwhile in certain circumstances. It’s because it costs time and money for debt collectors to sue someone in order to collect the amount.
If your debt isn’t too big or is old (particularly when it’s close to the statute of limitations in your state) the debt collector could determine that the debt isn’t worth seeking.
In the opposite, once they get your letter, they might realize that they won’t get any cash from you until they take radical steps. There’s the chance of inciting them particularly when you owe a substantial sum of money.
Regardless of the time required to bring an action to trial and pay an attorney, the collector may consider it to be best for them to take legal action. No matter how big your debt or age, it is important to be ready for this kind of response since there’s no way to know what they’ll do.
Tips for Sending a Cease and Desist Letter
If you’re sending a cease and desist notice it’s crucial to follow a few basic guidelines. First, use a formal and professional language. This isn’t the time to share personal information. Be sure to include your complete name address, address and account number, and make sure to mention the FDCPA.
It’s not advisable to include the initial account details in the cease and desist letters. The debt collector might not be able to access all information of your account and you definitely should not give them this information. It could be used to smear you when they decide to file an action.
Make sure you don’t involve you in any crime you’ve been accused. Don’t ever acknowledge that you are owed the debt. In all correspondence you send, refer to the debt by the “alleged debt.” Admitting that you owe the debt can alter the timeline for the limitation period.
After the debt collector is aware of your request after which the FDCPA allows the debt collector to contact you one final time through a letter. The reason for this is to inform you of what steps they’ll take in the event of a dispute. They’re less likely to violate federal law if they are aware that you’re informed of your rights under the law.
Certified Mail with Return Receipt
Send the letter by certified mail, and include a return receipt, to ensure that the debt collector received it.
Keep an original copy of the cease and desist notice to keep for your documents as well. Even if you choose not to send an email, you must maintain detailed records of each communication.
More Tips on Handling Debt Collectors
Other ways are available to reduce the contact with debt collectors. One method is to request the debt collectors to cease calling you at the place of employment you work.
You are able to make this request via the telephone, and they are legally bound to comply. However the more aggressive debt collectors could ignore your request and call.
If it happens you must keep a record of the initial phone conversation. You should note your name, the number of the person you spoke with the person you spoke to, their direct extension number, as well as the date and time of your phone call.
Keep it in the event that your request to stop phone calls is not met. You can then present these details to a lawyer that specializes in debt collection, to determine the most effective next step.
Stopping Collection Calls to a Cell Phone
Another way to limit the effect of phone calls on your mobile phone is to use a bit of modern technology. For instance, if you block the number of a debt collection agency or block the phone from them, they might begin contacting individuals you’ve met.
To avoid this, you should leave the call to voicemail if you don’t wish to contact the debt collection agency. Both iPhones and Androids have a feature that allows you to set a silent ringtone for particular phone numbers.
That allows your phone to be ringing and be put on voicemail when debt collectors call, without having to listen to it each time. For landlines, consider silencing your ringer. You can then check your messages later and connect with people you want to talk with.
There are a variety of efficient ways to deal with collectors when you’re in delinquency. The letters of cease and desist are a solid method to stop them from ever contacting you. You might have other options worth looking into. Understanding the meaning and purpose of cease and desist notices can assist you to stay clear of aggressive calls regularly.
Bottom Line
Although dealing with irritating debt collectors may be challenging be aware that you are protected by federal law. If you believe that a debt collector is violating these rights, an cease and desist notice could be a way of returning your peace of thought. However, it’s crucial to be aware of the possible consequences of this decision and seek out an expert if needed.
Being proactive and aware regarding your rights you’ll be able to improve your relationship with debt collectors, and take charge of your finances.
