If you are receiving phone calls in an attempt to collect a debt that you legitimately do not owe, the following cease and desist letter template may be useful in your efforts to clear up the confusion and stop the collection calls. If you are overwhelmed with debt, consider consulting an experienced debt reduction or bankruptcy attorney.
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Your Rights Under the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA), codified at 15 U.S.C. § 1692, is a federal law that protects consumers from abusive, unfair, and deceptive debt collection practices. Under the FDCPA, you have the right to:
- Request validation of the debt — Within 30 days of first contact, you can demand that the collector provide proof of the debt, including the amount owed, the original creditor, and documentation that you are responsible for the debt.
- Dispute the debt — If you believe you do not owe the debt, you can submit a written dispute. The collector must then cease collection efforts until they provide verification.
- Demand that the collector stop contacting you — You can send a written notice directing the collector to cease all communication. After receiving your notice, the collector may only contact you to confirm they will stop or to notify you of a specific legal action.
If a debt collector fails to comply with the FDCPA, you may be entitled to damages. A court may hold the debt collector liable for actual damages, statutory damages up to $1,000 per violation, and attorney’s fees.
When to Send a Cease and Desist to a Collection Agency
A cease and desist letter to a collection agency is appropriate in several situations:
- Disputed debt — You do not believe you owe the debt, or the amount claimed is incorrect.
- Harassment by collectors — The collector is calling excessively, calling at unreasonable hours, using threatening language, or contacting your employer or family members.
- Wrong person — The debt belongs to someone else (mistaken identity, stolen identity, or a debt you never incurred).
- Time-barred debt — The statute of limitations on the debt has expired, meaning the collector can no longer sue you to collect it. Note that making a payment on a time-barred debt can restart the statute of limitations in some states.
What Happens After You Send the Letter
After a collection agency receives your cease and desist letter:
- Communication must stop — Under the FDCPA, the collector must stop contacting you except to confirm they will cease efforts or to notify you of a specific legal action (such as filing a lawsuit).
- The debt does not disappear — A cease and desist letter stops the collection calls, but it does not eliminate the underlying debt. The creditor or collector can still sue you if they believe the debt is valid.
- Credit reporting implications — The debt may still appear on your credit report. However, if you have disputed the debt in writing, the collector must note the dispute when reporting to credit bureaus.
- Assignment to another collector — In some cases, the original collector may sell or assign the debt to a new collection agency, which may then attempt to contact you. A new collector is not bound by the cease and desist you sent to the previous collector.
Common Mistakes to Avoid
- Sending a C&D before validating the debt — Consider requesting debt validation first. If the collector cannot verify the debt, you may have an even stronger position.
- Admitting you owe the debt — Be careful with your language. Do not acknowledge the debt in your letter, as this could be used against you later.
- Making a partial payment — Any payment, even a small one, can restart the statute of limitations on a time-barred debt in some jurisdictions.
- Using aggressive or threatening language — Keep your letter professional and factual. The purpose is to assert your legal rights, not to escalate the situation.
- Failing to keep records — Send your letter via certified mail with return receipt requested, and keep copies of everything. This creates a paper trail if the collector violates the FDCPA.
Free Download of the Collection Agency Cease and Desist Letter Template
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[Your name]
[Your address][Creditor’s name]
[Creditor’s address][Date]
RE: Collection attempts on a debt I do not owe.
Dear [Name of collector]:
On [date of phone call(s)], you or someone from your company contacted me about a debt. I do not believe that I owe this, and I dispute it.
In accordance with the Fair Debt Collection Practices Act formally known as and codified under 15 USCA §§ 1692(a-p), I am asking for, and you are required to provide me with the following information:
a) Why do I owe the money?
b) How this amount has been calculated in a way I can understand.
c) Copies of the papers where I agreed to pay what you say I owe.
d) (if applicable) a copy of the judgment.
e) The name of the original creditor.
f) Demonstrate that you are licensed in my state, and provide this license number to me.Additionally, please provide this letter to the company for whom you are collecting so that they have notice of my dispute.
Please inform any credit reporting agencies to which you have reported this debt to, that this debt is currently in dispute. I will require proof that you have done this.
You are also required to cease and desist from contacting me in this and any related matters unless it is by United States Mail, and only for the purpose of informing me that you are terminating all efforts to collect or that you are taking specific court of legal action.
Sincerely,
[Your signature]_________
[Your printed (typed) name]
Frequently Asked Questions
Can a collection agency still sue me after a cease and desist?
Yes. A cease and desist letter stops the collection agency from contacting you, but it does not prevent them from filing a lawsuit to collect the debt. The FDCPA allows collectors to notify you of their intent to take specific legal action even after receiving a cease and desist letter.
Will a cease and desist letter affect my credit score?
Sending a cease and desist letter does not directly affect your credit score. However, the underlying debt may still be reported to credit bureaus. If you have disputed the debt in writing, the collector is required to report the debt as disputed, which may provide some context to future creditors reviewing your credit report.
Can I send a cease and desist to the original creditor?
The FDCPA applies to third-party debt collectors, not original creditors. If the original creditor is collecting the debt directly (rather than through a collection agency), the FDCPA’s cease-and-desist provisions may not apply. However, your state may have its own consumer protection laws that provide additional rights against original creditors.
What if the collection agency violates the cease and desist?
If a collector continues to contact you after receiving your cease and desist letter (beyond the narrow exceptions permitted by law), they are violating the FDCPA. You may be entitled to actual damages, statutory damages of up to $1,000, and attorney’s fees. Document every violation — save call logs, voicemails, and any written communications.