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What happens if a creditor receives a cease and desist letter from a debtor?
Wiki User
∙ 16y ago
Then the creditor must cease any attempt to collect the debt. It means the creditor is not allowed to call debtor, or send the bill to debtor's address or to make any further attempts. If the creditor still call the debtor, the debtor may complain and initiate a lawsuit. But usually the creditor will take the debt to court when a debtor serve him with cease and desist letter. It could be as soon as 3 months up to a year.
Wiki User
∙ 16y ago
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What happens when a debtor sends a cease and desist all communication letter to a creditor?
It depends on the laws of the country you're in.Here in the UK, a letter like that wouldn't be sent by the debtor. A cease and desist notice would be sent by a third-party organisation such as a debt management company or the citizen's advice bureau.Once the creditor receives the notice - it is a criminal offence for them to 'harass or contact the debtor in any way'. All further communication must be made through the third-party.The third party will then negotiate on behalf of the debtor, with the creditor(s) a reasonable repayment schedule based on the difference between the debtors income and expenditure. This will usually mean all interest payments will stop, and the debtor pays back the balance on the account(s) over an extended period of time.
How do you get an old creditor who was not listed on a chapter 13 bankruptcy to stop bothering you?
Send a letter of "cease and desist". This will not keep a creditor from filing lawsuit to recover the debt. It will only prevent them from contacting the debtor except to inform the debtor that a suit is being filed.
Can a creditor call you at your workplace in Pennsylvania?
Yes, but only if the creditor has not been informed that the debtor does not want to be contacted at the place of their employment. Once the creditor has been made aware of such they can no longer legally make contact at the debtor's place of business. The debtor can render the notice verbally but it is strongly suggested that said debtor send a 'cease and desist' notice via registered mail to the creditor(s). The letter should state all the places and/or methods that the creditor(s) cannot contact the debtor, (i.e, place of employment, educational facility, home, family members home and/or cell phone, landline, internet, etc.).
Cease and desist letter to creditor?
Need a sample of a cease and desist letter to creditor stating I cannot pay bill right now.
What if a creditor keeps calling after you tell them you are taking legal action?
To end phone calls from creditors the debtor must send a "cease and desist" letter containg all the information needed for identifying the account and the applicable terms. The correspondence should clearly state that the creditor should stop calling the debtor at his or her home, employment, cell phone etc. and also cease contact with any of the debtor's family, employer, etc.
How do you stop the payday loan companies from calling you all the time?
Send a "cease and desist" letter informing the creditor that you are requesting no more contact via, cell phone, land line, at a place of employment, in person, and any other methods. You must be very specific in what you want to occur. Send the written notice by registered mail with return receipt requested. Once the creditor receives the notice they are banned from contacting the debtor according to FDPCA laws. The only other contact they may initiate is to notify the debtor that legal steps (lawsuit or mediation board) are being taken to recover the debt.
Can a creditor's attorney contact you at work?
Yes, unless/until you request in writing for them not to do so ("Cease and Desist" notice). However, most attorneys realize problems can arise when taking such action and they have no desire to place a debtor's employment status in jeopardy. Therefore, they are usually cooperative when asked not to call a place of employment as long as they have other means of communicating with the debtor.
What should you do if a creditor continues to call your job after you have filed for a chapter 13?
If the creditor is a participant in the chapter 13 then they should have received notification from the bankruptcy court. The bankruptcy petitioner should notify the trustee that the creditor is in error. If the creditor is not a participant, they can continue to contact the debtor until they are notified in writing to "cease and desist".AnswerSend the creditor a written letter stated they are to cease contacting you by phone immediately and Amy only contact you through written correspondence. This is allowed by the Fair Debt Collections Act, a federal law. That should at least get you started.
Do unpaid medical bills sent to collections ever go away without payment?
The non payment of any debt can result in a civil suit by the creditor. However, all U.S. states have SOL's which determine when a creditor can no longer pursue the debt through legal procedures. Please be advised, when the SOL applies it is the debtor's responsibility to bring forth that reason as a defense. Likewise, a creditor/collector can still pursue collection even after the expiration of an SOL by the usual methods, phone calls, letters and so forth. Even so, the debtor has the recourse to send the creditor/collector a letter of "cease and desist" which prevents future debt collection contact. If such a letter is rendered the creditor/collector must cease all contact with the debtor unless/until a civil suit is filed.
How long can a creditor hound you for an unpaid debt?
There is no time period in which a creditor/collector must cease attempts at collecting a valid debt. All US states have statutes of limitations for debts owed. The SOL is the time alloted for the creditor to file suit against the debtor to collect monies owed. The expiration of the SOL is not always a guarantee of not having to pay a valid debt(s), certain circumstances are applicable. It is the legal right of the debtor to inform the creditor/collection agency that they do not wish to be contacted about the debt either by phone, email, postal service, etc. If the debtor wishes to take such action he or she should send a "cease and desist letter" to the creditor(s) requesting that collection attempts should be ended. The correspondence should be precise and sent via registered mail with a return receipt requested in case proof is needed of the action having been taken.
What does a creditor do after receiving a letter to cease-and-desist phone calls and what would the results be for a debtor?
They will continue to contact the person via mail, perhaps a courier service. Some credit counselor's believe that sending a "cease and desist' letter will cause the collector to initiate a lawsuit. That however is not a factor in pursuing legal action. Lawsuits are filed mainly on the basis of being able to collect the debt either at the present or future date.
Can a collection agency collect after 2 years?
Most likely yes. States have statute of limitations that determine the time a creditor/collector has to initiate a civil suit against the debtor. It is unlikely that two years would qualify as such in any state. However, the interested person can find out the SOL for debt for his or her state by doing a search of that state's consumer-creditor laws. In regards to usual methods of debt collection (mail, phone calls...) there is no time limit as such. The lender/collector can continue collection efforts as long as they abide by the FDCPA. The debtor has the option of rendering a "cease and desist" letter to stop collection methods, to the collector (not the original creditor) if they so choose.
