There are rules that collection agents and bill collectors have to follow. For instance, according to the Fair Debt Collection Practices Act, creditors cannot harass, use obscene language, use the phone to annoy someone, or call during unreasonable times, which are generally before 8 in the morning or after 9 at night. Sometimes however, regardless of the FTC guidelines, collection agencies violate these rules. If you are receiving harassing phone calls or feel that the bill collector is contacting you at inappropriate times, and you have asked them not to, you may want to send a Cease and Desist Letter.
What is a Cease and Desist Letter?
The Cease and Desist Letter simply notifies the creditor of the violation and requests that they cease contacting you. It also gives you a form of evidence if you have to sue the collector. You are able to file a lawsuit within one year of the violation. If you win, the collector may be ordered to pay you up to $1000, and reimbursement for attorney’s fees and court costs.
First though, you will need the collection agency’s information. It is a good rule of thumb to get this information at the beginning of the phone call. You need the name of the person you are speaking to, the name of the collection agency, and an address and phone number and the account number they are calling about. Also, keep a journal next to the phone and log what time the creditor calls and the exact dates. Try to obtain as much information as you can regarding the account and the creditor.
Sample Cease and Desist Letter
Date
Your Address
Cit, State and Zip Code
Collection Agency Name
Collection Agency Address
City, State and Zip Code
RE: Account #___________
Original Creditor_____________
Dear Collection Agency:
Your company contacted me on _____ regarding a debt. I request that you cease and desist immediately in your efforts to collect on the above referenced account. It is my personal policy to not deal with collection agencies and I will only deal with the _________ (state original creditor) at this time.
You are hereby instructed to cease any further collection effort immediately or face legal sanctions under applicable Federal and State law.
Sincerely,
Your Name
Include in the letter the alleged violation along with dates and times that it occurred. In this situation, the more information you can provide regarding the collection calls, the better. For example, for calls that occur before 8 or after 9, include “I have received X number of calls after 9 p.m on the following dates from your company, which is a violation of the Fair Debt Collection Practices Act”
If you are disputing that the debt is yours, state in the letter that you do not believe you owe the debt that they are contacting you about. In this example, you will also need to request in the letter that the collection agency provide you with what you owe the money for, how it is calculated in a way that you can understand, copies of papers where you agreed to pay, a copy of a judgment (if any), identification of the original creditor (if you don’t have this information) and a demonstration that the collection agency or company is licensed in the state you live in, along with the license number.
Be sure to copy the letter before sending, and mail it certified and return receipt requested. This will either stop the bill collector from calling you, or will result in the proof you will need if you proceed with a lawsuit. Most often, considering the cost of going to court and the possibility of losing a lawsuit, a cease and desist letter will be sufficient in stopping the phone calls.