A Sight and Desist letter is the formal notification that a debt collector has requested the obligee or third-party to cease and desist collection activity. The “demand” comes in the form of a lawsuit initiated by the credit bureau. If you received a Sight and Desist letter, you are advised to respond in writing to the credit bureau requesting a written verification of the debt. The verification will be an acknowledgment that you have received the letter and are in fact required to cease and desist collection activity under the Fair Debt Collection Practices Act (FDCPA). If the credit bureau fails to comply, a letter of dispute will be forwarded to the attorney general of the state or county. If they refuse to comply, they may be forced to acknowledge the allegations in writing. If a collection agency fails to comply with the terms of the cease and desist order, you have the right to take legal action. It is important to remember that these debt collection practices are deemed legal once a letter of demand is received. Failure to comply with the terms of the cease and desist collection practices order may lead to severe legal consequences including fines and legal action. To learn more about the stop and desist collection practices in the FDCPA, including what a consumer needs to do to initiate legal proceedings against a debt collector, contact a personal injury attorney who specializes in FDCPA issues. 

When you receive a cease and desist letter, it is important to understand that there is no formal time frame for responding to the letter. If a collection agency fails to abide by the terms of the cease and desist collection activity, you have the right to take steps to initiate legal action. In some states, consumers have the right to sue the agency for the amount they are owed, as well as for penalties that were assessed and for any past due balances. To learn more about legal actions relating to cease and desist collection activities, contact an experienced FDCPA attorney. A cease and desist letter can instruct a third party debt collector to not contact you by phone or send you written communications for a certain amount of time. For instance, the letter could instruct the third party debt collector not to contact you after the set period of notice has elapsed. If the debt collector fails to follow this order, the creditor is required to provide written notice to the agency. The letter does not require the agency to inform the creditor that you have taken legal action. In other states, the creditor is only required to notify the agency within a certain amount of time after which they are required to provide written notice to you.

Cease And Desist Collection Letter

A cease and desist letter can be used to ensure that the agency does not contact you at work or elsewhere without predjudice. A collector has no business contacting a potential client without knowing what the client’s name is or without having any knowledge of the person’s current address, type of occupation or whether the person is employed. The term prejudice refers to using irrelevant information to contact a debtor. This can include a debtor’s race or nationality, religion or ethnic background. It can even include an address that is not even familiar to the individual. Such irrelevant or outdated information will not be used in any other context and will not make up a proper basis for collection. When a cease and desist collection activity occurs, creditors or debt collectors should immediately contact a professional lawyer to review the case. The lawyer should assess whether or not the creditor has a properly established right to use such information as well as whether the credit rating of the debtor has been damaged in some way as a result of the collector’s cease and desist letter. If there is any damage, the lawyer may advise the debtor to settle the matter with credit bureaus or hire a professional attorney to assist with credit repair. There are three important factors that can harm your credit rating when a cease and desist collection activity occurs. They are: the amount of money that were improperly paid; the amount of money owed on the account; and the account balance.