How does a cease and desist letter work?

How does a cease and desist letter work?

Problem: Sam wants to know how a cease and desist letter will protect him from a harassing debt collector. He also wants to know whether sending a cease and desist letter means that he does not have to pay the debt anymore.

Solution: Sam, a cease and desist letter helps stop harassing debt collectors who may be continuously calling you or contacting you to pay up a debt. You are protected under the Fair Debt Collection Practices Act (FDCPA) in such a case where you can ask a debt collector to stop contacting you. For this you need to write a cease and desist letter.

Once a collection agency receives a ‘cease and desist’ letter, they have to stop contacting you in regards to the debt. However they may contact you to:

1.Inform you that further efforts from their side to contact you is being terminated.
2.Update you about their specified remedies that they, like other creditors may invoke.
3.Notify you (if applicable) that they want to invoke a specified remedy.
Once the cease and desist letter is received by the collection agency, they may stop contacts and send back the account to the original creditor. The original creditor may turn the account to another collection agency to follow up for the debt.

Sam, sending a C&D letter does not mean you do not owe the money. You may prevent collection agencies from contacting you irrespective of the fact whether you actually owe the money or not. However, if you do owe the money in reality, then a C&D letter will not help you for too long. On the other hand, if you do not owe the money and the collector is simply harassing you, you can take a stand and ask them to stop.

If you are regular on your payments creditors will not bother you and this will also boost your credit score. When you plan your monthly expenses, do not forget the debts that you have and keep money aside for them too. This way you can avoid any trouble with creditors.