Learn How To Send A Cease and Desist Letter To Creditors

Learn How To Send A Cease and Desist Letter To Creditors

Dealing with debt collectors can be stressful and annoying. If you feel like you are being harassed by creditors with constant phone calls or letters demanding payment, you have the right to tell them to stop contacting you. Sending a cease and desist letter is a way to formally request that the bothersome communications end. Here’s what you need to know about writing and sending cease and desist letters to creditors.

What is a Cease and Desist Letter?

A cease and desist letter is a formal written request telling a creditor or debt collector to stop contacting you regarding an alleged debt. This letter puts the company on notice that you want the communications to cease, and that you may take legal action if they continue to contact you. While not legally binding, a cease and desist letter carries quite a bit of weight and most reputable companies will honor the request.

When Should You Send a Cease and Desist Letter?

If a creditor or debt collector is contacting you excessively by phone, email, or mail, you can send them a cease and desist letter. Under the Fair Debt Collection Practices Act (FDCPA), collectors are prohibited from contacting consumers in a harassing, abusive, or deceptive manner. This means they cannot:

• Call you repeatedly or continuously with the intent to annoy, abuse, or harass
• Call you without identifying themselves as debt collectors
• Contact you at inconvenient times or places, such as before 8 am or after 9 pm
• Contact your employer about your debt
• Talk to others (besides your attorney) about your debt
• Threaten violence or harm, use obscene language, or repeatedly use the phone to annoy you

If a collector engages in any of these prohibited activities, you should send them a cease and desist letter requesting that they stop the unwanted communications immediately. Under the FDCPA, the collector must then cease contacting you, with a few exceptions like notifying you about legal action. Sending this type of letter creates a paper trail documenting your requests for them to stop.

Does a Cease and Desist Letter Stop All Communication?

While a cease and desist letter requires the debt collector to stop calling and writing you, it does not prohibit them from taking other lawful actions to collect on the debt. For example, they can still report your debt to the credit bureaus, sue you to collect, or charge interest and fees. The main purpose of the letter is to stop the harassing communications that violate federal law.

What Should You Include in a Cease and Desist Letter?

Your cease and desist letter should contain the following information:

• Your name, address, phone number, and account number
• The date
• The name and address of the collection agency
• A statement requesting that all communications regarding the debt cease
• A brief statement about why you want communications to stop (harassment, calling work, etc)
• A statement that you will pursue legal remedies if communications continue
• Your signature

Be sure to keep the letter brief, professional, and to the point. Avoid including any disputed details about the debt itself. The sole purpose is to request that they stop contacting you. Here is a sample cease and desist letter template you can use:

 Your Name Your Address Your City, State, Zip Date Name of Collection Agency Address City, State, Zip Re: Account # To Whom It May Concern: I am writing to request that you cease all communications with me regarding the above referenced account. Your constant [calls/letters/emails] are [annoying/harassing/abusive], and I request that you stop immediately. As required by the Fair Debt Collection Practices Act, I expect that you will no longer contact me by phone, mail, email, or any other form of communication. If you continue to do so, I will have no choice but to pursue legal remedies. Sincerely, Your signature Your printed name 

How Should You Send the Letter?

It’s important to send your cease and desist letter in a way that creates a record of delivery. Here are some options:

• Certified mail: Sending by certified mail with return receipt requested documents that the letter was mailed and provides proof of delivery with the returned receipt. Save copies of both.
• Email: You can email the letter, but be sure to request a read receipt. Print and save the email and receipt.
• Hand delivery: Having someone hand deliver your cease and desist letter and obtain a signed receipt from the collector provides proof they received it.

What Happens After You Send the Letter?

Once the collection agency receives your cease and desist letter, the law requires them to stop almost all communications with you. Under the FDCPA, the only contacts they are permitted to make are things like formal legal notices about credit reporting or lawsuits. Any other attempts to contact you about the debt should cease once you send the letter.

If the unwanted calls and letters continue despite sending your cease and desist letter, you have a few options:

• Send another cease and desist letter – Repeating your request makes it clear you are asserting your rights.
• Report them to the Consumer Financial Protection Bureau
• Report them to the Federal Trade Commission
• Consult with an attorney about suing for violations of the FDCPA – You may be entitled to up to $1,000 in statutory damages.

While a cease and desist letter is not guaranteed to resolve the problem, it creates important documentation that you asked the collector to stop. This can help if you need to take legal action down the road.

What Are the Pros and Cons of Sending a Cease and Desist Letter?

Like any course of action, there are both advantages and potential risks to sending a cease and desist letter. Consider these factors when deciding if it’s the right choice for your situation:

Pros:

• It formally asks the collector to stop the unwanted communications
• It documents your requests in writing
• It asserts your rights under the FDCPA
• It may get the collector to leave you alone
• It’s relatively simple to write and send yourself

Cons:

• The collector may ignore it and continue contacting you
• You may need to follow up with legal action if they don’t comply
• It doesn’t make the debt go away
• The collector may still take other legal steps to collect

Alternatives to Sending a Cease and Desist Letter

Rather than sending a cease and desist letter, you may want to consider these other options for dealing with bothersome collectors:

• Negotiate a payment plan – Working out a reasonable monthly payment schedule may stop calls and harassment.
• Offer a lump sum settlement – You may be able to pay a smaller lump sum to satisfy the debt.
• Assert the statute of limitations – If the debt is very old, the collector may be barred from suing you.
• File for bankruptcy – Bankruptcy may discharge some types of old debts.
• Dispute the debt – You can send a written dispute challenging the validity of the debt.

The right approach depends on your specific circumstances. Consulting a credit counselor or consumer rights attorney can help you decide the best strategy.

What Should You Do if You’re Sued by a Debt Collector?

If a creditor or debt collector sues you to collect on a debt, you should take the lawsuit very seriously and be sure to respond within the required timeframe. Ignoring a lawsuit could result in a default judgment against you. Here are some tips if you get taken to court:

• Read the summons carefully – It will explain your options and the deadline to respond.
• Consider hiring an attorney – An experienced lawyer can defend you in court.
• File an answer denying the claims – You typically have 20-30 days to submit your response.
• Assert affirmative defenses – Defenses like the statute of limitations can defeat their case.
• Counter sue for FDCPA violations – If they violated consumer protection laws, sue them back.
• Negotiate a settlement – Offering payment may convince them to drop the suit.

Going to court is always stressful, but try to remain calm. Take the proper steps to protect your rights and defend yourself. The collector has the burden to prove their case.

Key Takeaways About Cease and Desist Letters

Here are some key tips to remember about sending cease and desist letters to bothersome collectors:

• Use a cease and desist letter to formally request communications about a debt stop.
• Under the FDCPA, collectors must honor your cease and desist requests.
• Keep the letter brief, professional, and to the point.
• Send it via certified mail or other trackable delivery method.
• Follow up if the collector ignores your request.
• A cease and desist letter creates important legal documentation.
• Get legal help immediately if you are sued by a collector.

Dealing with collectors is frustrating, but asserting your rights in writing can help. With a properly drafted and delivered cease and desist letter, you can request the harassment stops and improve the situation.