Your Right to Stop The Annoying Calls & Letters
So, you have some debt. Big deal! 77% of American households have some sort of debt. That does not mean you should be subject to incessant letters and robocalls from debt collectors. Most don't know that you have rights and options to manage these interactions. This article will guide you through the process of stopping debt collectors from contacting you, explain why they might be reaching out, and outline your legal recourse if they persist.
Debt collectors are not the original creditors to which you owe this money, rather, collectors are third-parties agencies who attempt to collect unpaid debts after the creditor's internal collection efforts have failed. Debt collectors only make a profit from collecting -old debts and thus have a history of questionable practices in collecting them. However, it's important to know your rights all collection efforts must adhere to the Fair Debt Collection Practices Act (FDCPA) regulations when contacting debtors.
Key Points:
Why Debt Collectors Contact You
Debt typically goes to collections after it has been delinquent for a certain period, usually between 90 to 180 days, depending on the creditor's policies. During this time, the original creditor (the party you owe the money to) will attempt to collect the debt through their internal processes. If these efforts are unsuccessful, the debt may be sold to a collection agency or assigned to a third-party collector to recover the outstanding amount.
These parties buy your debt at a discount, often for pennies on the dollar, and then attempt to collect the full debt from you to make a profit. Whether unpaid credit card balances, overdue medical bills, or even past-due utilities all unpaid debt will eventually reach collection action. Debt collectors will attempt to contact you most often by mail and phone call, however, they will use any method possible to reclaim the debt, including text, email, and threatening legalistic letters. It’s important to note that debt collectors must follow specific rules outlined in the Fair Debt Collection Practices Act (FDCPA) when contacting you.
Your Right to Cease All Contact
Consumers have the legal right to request that debt collectors cease all communications with them. This right is a crucial protection against harassment and unwelcome contact. According to the FDCPA, you can request that a debt collector stop all communications with you. This request must be made in writing.
Send a written request
Use the example below or the ones found in your Document Center to create your own clear and concise letter requesting that the debt collector cease all communication with you. Include your personal information, the debt collector’s information, and any account or reference numbers associated with the debt.
Send via certified mail
Use certified mail with a return receipt to prove the collector received your request. Learn more about certified mail and return receipts in our Dispute Mailing Guide.
Keep records Â
Keep a copy of the letter and the return receipt for your records. This documentation may be important if you need to take further action.
Once Your Letter is Received
Collectors must inform you that they will comply with your request and will no longer contact you as well as notify you of specific actions they intend to take, such as filing a lawsuit. Once the debt collector receives your written request, they must cease all further contact except to:
Advise you that they are stopping their collection efforts.
Inform you that they will cease further contact
Notify you of specific actions, such as filing a lawsuit
If Collectors Continue to Contact You
Under the Fair Debt Collection Practices Act (FDCPA), debt collectors must cease communication with you after receiving your written request, except to inform you that they are stopping collection efforts, to notify you of specific actions they may take, or to inform you of their intent to take a specific action. Here's What to do if a debt collector continues to contact you after receiving your cease communication request:
Verify Receipt of Your Request
Ensure that the debt collector received your written cease contact request. It’s best to send your request via certified mail with a return receipt, so you have proof that they received it.
Document All Communications
Keep a detailed record of all communications with the debt collector, including dates, times, and the nature of the contact. This documentation can be crucial if you need to escalate the issue.
File a Complaint
If the debt collector continues to contact you, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and your state’s attorney general’s office. These agencies can investigate and take action against the debt collector. Additionally, you may have grounds to sue the debt collector for damages, including actual damages, statutory damages up to $1,000, as well as attorney's fees and court costs.
Consider Legal Action
Consider consulting with a consumer rights attorney who specializes in debt collection issues. They can provide legal advice and help you take further action if necessary.
If the debt collector’s actions are particularly egregious, you may be able to sue them for violating the FDCPA. Successful lawsuits can result in the debt collector being required to pay you damages, as well as covering your attorney’s fees.
It’s important to stand up for your rights when dealing with debt collectors. By following these steps, you can protect yourself from harassment and ensure that debt collectors comply with the law.
Dealing with Debt in Collections
Once your debt has gone to collections, it’s crucial to take proactive steps to address the situation. Here are some strategies to help you manage and potentially resolve your collection debt:
1. Verify the Debt
Before taking any action, ensure the debt is legitimate and belongs to you. Request a debt validation letter from the collector and review all information carefully, including the amount owed and the original creditor. It’s also important to check if the debt is within the statute of limitations in your state. Just because someone is attempting to collect a debt, doesn't mean you legally owe it. See Module 6 in the Debt Do-Over.
2. Dispute Inaccurate Debt
If you find errors or believe the debt isn’t yours, you have the right to dispute it. Send a written dispute letter within 30 days of receiving the validation notice and provide any evidence that supports your claim. The collector must cease collection activities until they provide proof of the debt’s validity. See Module 6 in the Debt Do-Over.
3. Negotiate a Payment Plan
If the debt is valid and you can’t pay in full, consider negotiating a payment plan. Contact the collector to discuss payment options and propose a monthly payment amount that fits your budget. Always get any agreement in writing before making payments. See Module 8 in the Debt Do-Over.
4. Attempt a Settlement
You may be able to settle the debt for less than the full amount. Consider offering a lump sum payment that’s less than the total debt. Start with a low offer (around 30% of the debt) and negotiate from there. Ensure you get the settlement agreement in writing before paying. See Module 9 in the Debt Do-Over.
For a comprehensive guide on managing your debt and improving your financial situation, see The Debt Do-Over Course.
While dealing with debt collectors can be challenging, you have the power to control these interactions. By understanding your rights and taking proactive steps, you can effectively manage and potentially stop debt collection communications. Remember, ceasing communication doesn’t erase the debt, so it’s crucial to address the underlying financial issues while protecting yourself from harassment.
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