Settle credit card debt » Debt Collector

Cease and Desist Letter May Not Be Best

admin — Tue, 26 Oct 2010 23:07:22 +0000

If you want to stop a debt collector from calling you, the Fair Debt Collection Practice Act certainly allows you the ability to do so.

All you would need to do is write a letter to the debt collector and tell them to stop calling you both at home and at work. Though it is not necessary to send this Certified Mail – Return Receipt Requested, it is strongly recommended that you do so, as mail does get lost.

Once the debt collector receives your letter, the law requires them to stop calling you again except to say that there will be no further contact and/or to notify you that the debt collector or creditor will be taking a specific action.

Now here is where it can get sticky.

Although this will stop the debt collector from calling you, it does not make the debt go away if you actually owe the money. If you prevent the collection agency or the debt collector from calling you, then you might force the issue and leave them no other choice but to file suit against you and get a judgment.

Depending on your state you live in, this can prove harmful to your spouse if you live in a community property state. Further, your wages may be affected as they could request through court that they garnish your wages. If a judgment appears on your credit record, it could have a very bad affect when applying for a job.

I know how demanding and harassing a debt collector can be. Stopping them from calling is an easy process but it should not stop there. If you do submit a letter to stop a debt collector from calling you, use the breathing room to arrange the clearing of your legitimate past due debt.

It would serve you well to write a follow-up letter giving details as to how you intend to clear your past due debt. Such as a payment plan that you are willing to adhere too. Just do not over commit yourself.

The point here is that if you are going to have a debt collector stop calling you, you will need to keep the line of communication open through the mail and work on resolving you legitimate past due debt.

By: C Cruz

Civil Summons For Credit Card Debt? Don’t Make These Mistakes!

admin — Tue, 13 Jul 2010 00:30:23 +0000

Observations on the Most Common MISTAKES Consumers Make When Faced with a Credit Card Debt Lawsuit

1. Consumers ignore notices for Court.

Never, ever ignore a notice from the court. If you suspect it’s a fake (some FDCPA Violators a.k.a. “junk debt buyers” have been caught sending out fake documents that resemble a summons) please call your local courthouse and ask them for verification. A court clerk generally answers the phone and can search by case number or by your name.

The creditor is counting on you either not receiving the notice or not responding to it thus granting them a a default judgment. A default judgment means they WIN and can now garnish your wages and freeze your assets. You may not even receive of the judgment until a wage garnishment attachment is in place.

2. Consumers fail to respond to summons.

Many consumers feel guilty about their debt(s) and fail to respond to the summons within the time-frame indicated. Even if your debt is valid, within SOL and you want to settle, YOU STILL NEED TO RESPOND TO THE SUMMONS WITH AN ANSWER within the time-frame granted (from the date of service) which is usually 20 to 30 days.

I’ve seen too many cases where the consumer works out a deal directly with the debt collector (Plaintiff) and never responds to the court placing that responsibility on the Plaintiff. Guess what? Plaintiff never withdraws their suit and now they have a default judgment in addition to whatever monies they’ve already collected from the debtor.

3. The following practice by debt collectors seem to be an increasingly common (and sleazy) occurrence. The debt collector may sue a consumer is Court. Instead of using the Sheriff to serve the summons, the collector likely will opt to use a special process server. (This is what happened to me!)

The consumer never receives the summons because of improper service (summons was left in an obscure location on the property, with a neighbor, etc.) thus the consumer never answers the complaint, and the debt collectors win a default judgment. BUT, the debt collector sits on the judgment and waits two to three years before executing on it…usually by a surprise wage attachment. The first the consumer ever knows of the suit or judgment is when their wages are garnished. The consumer will have a hard time trying to get the Court to vacate the judgment after two or three years. And the wage garnishment will stand.

This is another excellent reason to sign up for credit monitoring so you will know immediately if something like this has happened. Additionally, many district courts have websites where you can search for your name, not a bad idea to do on a monthly basis if you suspect a collector will be filing a suit against you.

4. When served with a summons (if you are even served), immediately contact an attorney. If you can’t afford an attorney, you can file Pro Se, which means you represent yourself. But by all means, file the answer within the 20 to 30 days indicated! You may qualify for legal aid AND there are resources out there to help you draft your documents, check my links for referrals.

I recommend sending a Notice Of Appearance (this instructs the Court that you are an active participant in the lawsuit and that you should be informed of all communication at a designated address.)

You need to file the Answer to Complaint, Affirmative Defenses document which answers their numbered allegations with an Affirm, Deny, or Lack the Knowledge to Answer type of statment. On the same document you then go on to assert common defenses to credit card debt lawsuits such as out-of-statute, statute of frauds, etc.

You also need to send a Certificate of Service that proves you mailed your Answer documents to the Plaintiff as well as filed them with the court. AND, I highly recommend you send a Cease & Desist Letter to the Plaintiff (read my post about How To Intimidate Debt Collectors for a great tip to use w/ this letter!) that instructs them to only contact you via written correspondence and bars them from contacting your employer, friends, relatives and neighbors.

You should also consider initiating “Discovery” by serving them with a Request for Production of Documents. Basically, you want to put them on notice that you are aware of your rights, are not going to roll over and accept a default and MAKE THEM PROVE THEIR CASE!

It’s well known that third-party debt collectors often only have an affidavit of debt to go off of. If you don’t request any documentation that is enough for them to win or obtain a judgment. However, if you request documentation they must furnish it at a hearing. If they can’t, you win!

For more information about how to fight a credit card debt lawsuit or to purchase my Word & PDF Fill-in-the-Blank templates for Notice of Appearance, Answer, Discovery, and more please visit ihavebeenserved.info.

You have nothing to lose by fighting these predatory debt collectors and everything to gain!

By: Jay M Johnson

How to Beat the Bill Collector With Sample Cease and Desist Letter

admin — Tue, 27 Apr 2010 10:10:57 +0000

Debt collectors are highly motivated to convince debtors to pay the debt because they frequently work on a low base pay plus commission. This business model has created the reputation for bill collection agencies that we know today.

The collector might engage in threatening behavior and harassment. However, like any other business they are governed by laws that prohibit certain abusive practices.

There are three reasons for a debt collector to contact you: your creditor has not received a payment from you within the time frame discussed in the contract; you are a victim of an identity theft meaning someone used your identity to obtain credit and didn’t pay it off; and finally, you might be contacted by collectors who are looking for someone other than you.

When contacted by a collector, take as much information as possible from the caller. Ask for the name of the company, address, the caller name, fax and phone number, amount owned, and the name of the creditor who passed your account to them. Also, tell them you expect to receive a notice in the mail concerning this debt. The last step is very important because you need to have proof of the debt in question in writing.

If you discovered that the debt is not yours, never pay it off simply to get rid of the collector. Also, never ignore the collector either. They will not stop contacting you, and may even file a lawsuit against you. If you are repeatedly being contacted by a collector looking for someone other than you, it may be considered a form of harassment. To stop this you need to send them a letter requesting to cease calls.

If you established that the debt is yours and you don’t feel comfortable dealing with a collector via phone, tell them you want all future correspondence in writing. You need to send this request via a certified mail and request a return receipt. If you want to allow calls only between 5pm and 6pm, tell them about it in the letter. By law collection companies are required to respect your privacy and will have to cease all phone calls to your home, relatives, neighbors, and work.

Once you have their claims in writing it’s easier to seek legal help, and keep records of your correspondence. Send all your responses to bill collectors via Certified Mail. This way you will have proof of receipt by the addressee.

Remember that the amount they claim you owe is negotiable. You can negotiate the total amount due, number of payments, and the payment deadline. Once you worked out the payment plan, request it in writing.

What a debt collector CANNOT do:

1.) Use deceptive practices. For example, threaten you with arrest or trick you into paying for collection calls.
2.) Use obscene language.
3.) Call you at work after you tell them that your boss does not approve these calls.
4.) Deny you the right to receive a written notice (within five days after your first phone conversation) that would tell you how much you owe and the name of the creditor that says you owe the money. If you do not receive the notice within five days, call the collection agency and ask for its address and fax number. Then, send a letter to the collector noting its failure to send you the required notice. As a minimum, make a note in your file.
5.) Refuse to give its name and the name of the collection company when asked.
6.) Put a debt on your credit report if you file a dispute. It must validate the debt by obtaining a verification of the debt or a copy of a judgment from the creditor before continuing their collection efforts. The results of the investigation must be mailed to you.

SAMPLE CEASE AND DESIST LETTER

The cease and desist letter has legal stature based upon the Fair Debt Collections Practices Act at section 805. You can read it for yourself here. The Fair Debt Collection Practices Act applies to both the agency and to attorneys who collect two or more debts per year. This law does not apply to the original creditor. However many original creditors will honor your request to not be called.

Please note that when a consumer debt collector receives a cease and desist letter they may move the account to legal status. This means that if they intend to sue you, the cease and desist letter will prompt them to bring suit immediately. So if there is an alternative way to stop being bothered by their calls, like using an answering machine, I’d suggest that you try it first. If there is no alternative then send the cease and desist letter.

Send the letter via certified mail with a return receipt request. Keep a copy of the letter for your files. The letter may take a couple of weeks to work its way through the collection agency’s system before your number is taken out of their automated dialers. Even after they receive the letter they are allowed (under law) to contact you one time to notify you of their intent.

The below letter is easily personalized by utilizing a word document program. Although not the cease and desist letter currently utilized by Credit Restoration Consultants, it will serve to notify consumer debt collectors of your intent and purpose. Although protected by copyright, single user permission is granted to individuals in the self help credit restoration process.

My Address
My City State and Zip

December 30, 2001

Acme Collection Agency
12345 West Main Street
Any Town, AL 30311

Dear Sir/Madam:

This letter is forwarded to your collection agency reference account number 123456 and the dunning collection notices/calls recently received. Insofar as your agency is a debt collector pursuant to section 803 of the Fair Debt Collection Practices Act, you will be treated like one. Therefore, the Fair Debt Collection Practices Act – and all of its relevant provisions – will be invoked.

YOU ARE HEREBY NOTIFIED that this is a disputed debt pursuant to section 809 of the Fair Debt Collection Practices Act. The specific content of said dispute was recently stated – verbally – to an individual at your agency who refused to provide their name upon request thereof. Pursuant to the FDCPA, you are prohibited from dunning a debtor when a specific debt is disputed.

YOU ARE FURTHER NOTIFIED that this is a disputed debt pursuant to section 623 of the Fair Credit Reporting Act. It is my belief that your agency has illegally reported this disputed debt to Equifax, Experian, and Trans Union. If this is the case, I will most certainly litigate an action against your agency insofar as it has willfully reported a disputed debt. Pursuant to the FCRA, your agency must notify the consumer reporting agencies of any disputed delinquency immediately upon notification thereof. A further cause of action may exist for failure to perform this ministerial task.

YOU ARE FURTHER NOTIFIED that I desire no further communication with your agency under section 805 of the Fair Debt Collection Practices Act. Your agency is to CEASE and DESIST all further communication immediately. Should I receive another piece of dunning correspondence that does not comport with the provisions of the FDCPA, I will immediately initiate litigation against your agency.

Sincerely,

John Q. Public

THIS IS AN ATTEMPT TO MAKE A DEBT COLLECTOR OBEY THE LAW. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. THIS COMMUNICATION IS FROM AN ALLEGED DEBTOR REFERENCE A DISPUTED DEBT.

By: William E. Lewis, Jr.

Fight Off Debt

admin — Tue, 20 Apr 2010 18:24:52 +0000

If you’re drowning in debt, you are already well aware that it can really make life difficult. This is simply because these debt collection companies and debt collectors hunt you down like a pack of hyenas. No one likes to talk to these skunks but sometimes doing so can be beneficial. You’ve recognized that you need a debt relief solution, and you must come up with a debt management plan. Everyone has a right to lead his/her beautiful life with ease and comfort irrespective of the fact whether they are debtors or not.

If the debt collector does not offer debt management advice, ask if there are any debt management plans or ways that your interest, payments, or fees can be lowered to put them within reach. Part of the problem is that many debtors just aren’t good at debt management or managing their finances generally, and that is part of the reason they got in too much debt in the first place.

If borrowers would learn never to borrow money to buy such things as holidays visits to restaurants and the like, they would never be in debt. Debts of that nature are what enables the moneylenders to acquire another debt slave and laugh their way the bank. Don’t be like the monkey that is attracted to the shiny mirror, wake up! Find out how to earn more money, find a money making idea, a home based business perhaps, find out how to make money online, then you will know how to pay off debts. Start cheering yourself up by browsing the three web-site URLs in the Resource Box below, all of which will get you out of debt, if you follow the procedure therein and the advice herein.

Debt is often caused because people are quite simply not earning enough money; they borrow in order to keep up with everyday expenses until the inevitable crunch comes. Some become very skillful at pushing the crunch day forward by manipulating lenders, those people should instead concentrate on using their skills at making extra money and finding a money making business opportunity.

Often the worry of dealing with paying off debts prevents them from pursuing extra money from additional earnings. If they could shake off that borrow, borrow mindset and replace it with earn, earn mindset they could not only deal with their debt more efficiently they could become very comfortably off by seeking an entrepreneur opportunity. For those of you who have still got any sense left, and want a debt relief solution, think again and take a look at the following website shown below

One could conceivably start an internet business opportunity using money temporarily held back from creditors to make a profit, and use that profit to pay off debts. While it’s unlikely that you will be able to get someone else to pay your debt for you, there is help getting out of debt available. You can learn how to be your own boss to get extra money and learn how to pay off debts.

Then with extra income which will help getting out of debt make a workable budget and put extra money toward your debt relief plan. When you’re already in too much debt, the worst thing to do is to acquire the means to take on more, unless you can make a profit from it. Too often, debtors make mistakes and decide that it’s just too hard to pay their debts off, so they go back to their old habits.

Coming up with an effective plan to ‘pay off my debt’ is quite an accomplishment. You’ve recognized that you have a debt problem, and you’ve come up with a plan of how to get out debt. Sticking with your debt relief plan is the hardest thing for many people to do. Get used to the idea that you must earn more money! Because it is the only way out of trouble.

By: Peter Fitzgerald

Debt Collector Negotiation Tips – Settle for Less

admin — Wed, 17 Mar 2010 17:16:31 +0000

If you are in debt you probably know the stress of having to deal with debt collectors. The stress of debt can creep into every aspect of your life and cause you many other problems other than financial ones. Many people just avoid talking to debt collectors, although constantly screening phone calls and trying to avoid them is just as stressful as dealing with them directly. Avoiding the problem won’t make it go away and unpaid debt will only continue to grow and ruin your credit. If you are ready to do something about your debt there are ways to negotiate with debt collectors so that you can pay off your debt and stay within your budget, all while saving your credit reputation and avoiding bankruptcy.

One of the reasons people dread talking to debt collectors is because they ask many questions which can potentially be used against you if you give the wrong answers. It is important that you know how to answer debt collectors’ questions and that you know what to say so that you can negotiate payments and terms. If you are unsure what to say or do, it is best to say nothing until you have had a chance to think the situation over.

The first thing to remember when talking to a debt collector is that you should never share financial information. You do not have to give them this information, only the company you owe money too should have access to personal information if you pay it. You also do not have to answer any questions you do not feel comfortable answering, so if you are not sure what to say just decline to answer.

You should also ask the debt collector to send you all the debt information on what you owe in writing as an itemized list including the original debt, interest, and collection charges. This information should be the starting point for your negotiation and will tell you exactly what you owe and if it is accurate. If the debt is not accurate or it is in error, make sure you dispute it as soon as you realize the mistake. Ignoring it because it is wrong or in error will not make the situation go away or resolve the debt. Disputing the debt is the only way to clear it up if you do not owe what you are being charged with. It is best to contact the debt collector with your dispute no more than 30 days from the time they contact you.

Even though debt can be very serious and stressful, you still have rights and debt collectors cannot harass or threaten you. If you find that a debt collector is abusive or threatening, you should notify the proper authorities as these actions are illegal. Make sure you keep a record of all such transactions.

When you go to negotiate, remember that debt collectors are in the business of getting paid and will usually be willing to work out a payment plan with you. If you make it clear that you can only afford so much in payments per month, they will usually work something out with you rather than leave the debt unsettled.

If you are not comfortable enough or you are having trouble negotiating your debts on your own, there are companies out there that do this. This can be a great solution for many people because most of the time the company you work with can negotiate a better deal than most individuals would be able to. These companies have done it time and time again and they don’t have the emotional attachment to the debt like you would. If you are interested it finding out what one of these companies can do for you, please fill out the form HERE and receive a free debt consultation and get your options and get connected with the appropriate people to help with your collections. Know, that after your initial consultation and you get your options and likely outcomes, you have no obligation to go with the company you have every right to go about the negotiations on your own.

By: Manny Vetti