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What is a debt collection Cease and Desist letter?

Think twice before sending that Cease and Desist letter to your creditor!

If you are searching the internet for advice on how to deal with debt collectors, you may have come across articles advising you to send a Cease and Desist letter to your creditor or third party collection agency. Essentially, this letter will instruct the collector to stop further contact and can be applied to communications by phone and mail. It is often described as a magic solution to ease the mental stress of dealing with an outstanding debt because it can quickly stop the regular contact that the creditor is making in an effort to collect an alleged debt.

Although in many instances it will provide relief from most forms of collector communication, it often compounds the problem. Shortly after the collector receives this letter, they are limited to the forms of contact that you have authorized, which means their ability to attempt collections are hampered. This can oftentimes cause an acceleration from the initial collection stage to litigation - you may be sued shortly thereafter.

Think about it, the creditor is trying to collect a debt by reaching out to you. If they are limited in the ways they can contact you, they may decide that the most feasible way to collect is through legal process, a lawsuit. If your original contract allows for collection of legal fees, the collection agency may pursue you in court for the original debt with interest and attorneys fees. Many debtors are able to resolve their obligations with less expense during the pre-litigation stages. Before sending a Cease and Desist letter to your creditor, analyze your circumstances to determine whether this will be in your best interest. The long-term cost may outweigh the short-term benefit.

The Law Office of Simon Goldenberg, PLLC helps people find solutions to their debt problems.We are federally designed as a debt relief agency under the U.S. Bankruptcy Laws. This article is intended as general educational material and is not legal advice. You are advised to consult with an attorney when contemplating legal decisions. An attorney/client relationship is not sought by the above material. Contact us for a free evaluation from a new york bankruptcy attorney.