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Got debt? How to stop calls from bill collectors

0 Comments | Westside Gazette, May 13-May 19, 2010 | by Cox, Lynn

On my free financial advice blog, AskTheMoneyCoach.com, I get a lot of questions about how to handle debt collection agencies. But what about you; Have you ever hand an irate bill collector call you and demand payment on a debt?

If any debt collection firms are harassing you - by constantly calling you all hours of the day or night, contacting you on the job when you say you can't get calls there, or using profane and threatening language - such harassment is illegal and you can make them stop immediately.

"Cease Contact" or Cease and Desist" Letter

Simply write a brief letter advising them to cease all contact with you. The fist sentence should say: "I am unable to pay this bill, because..." and explain your reason. You might be unable to pay because you are unemployed, sick, or going through a divorce. You might refuse to pay a debt because it's not your responsibility, you dispute the amount being demanded, or the statue of limitations as expired on the debt (meaning the debt is too old to be legally enforced).

You also have the option of not providing a reason at all. If you provide no reason, the second sentence of your letter should state: "I hereby assert my right, under section 805-C of the Fair Debt Collection Practices Act, to request that you cease any further communication with me." (In the back on my book, Zero Debt, you will find a sample 'Cease & Desist Letter.' This basic language is all you need to communicate to debt collectors to get them off your back).

After they receive your 'Cease & Desist' letter, debt collection firms can't contact you, except to indicate that the collection process against you has stopped, or that they plan to take, or recommend that your original creditor, take, legal action against you, such as taking you to court. Even then, debt collectors can't threaten legal action unless they truly intend to take it. Either way, the annoying phone calls and those harassing letters will immediately end.

"Usually (collectors) will say they'll proceed with court action and it's not true," says former collection agent John Bowe
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