Cease and Desist letter

Baxterboy

LoanSafe Member
Apr 3, 2012
7
0
0
Hi Everyone,

Do you think that there could be some unintended consequences of sending a Cease and Desist letter, either to an original creditor or a third party collection agency? In the case of an OC, they may feel that they now have no way to communicate or contact you; therefore, may have no choice but to start a lawsuit to collect their debt. What experiences have some of you had with a Cease and Desist letter? My home is in California and I am walking in May. It is heavily underwater and is a purchase money mortgage with no refinancing on the mortgage. Thanks
 

Ready2Run

LoanSafe Member
Aug 11, 2010
611
18
18
San Francisco Bay Area, CA
You can always send the C&D with a clause allowing them to ONLY contact you via USPS. That way they can still contact you but it avoids the calls. Either way I would wait until the calls get heavy or they call friends or family. I thought of sending a C&D right away but found it easier to just let Caller ID make up my mind. It's helped with political polls too. :laugh:
 

Dad_co.

LoanSafe Member
Jan 2, 2012
22
1
3
central California
We sent ours in after they called my work number. It was about 15 days after first missed payment grace period ended. We stated "mail correspondence only", it worked and just 2 letters so far requesting that we please pay. The bank is required to notify property owner at the pertinent milestones of the process and i am confident they will.
 

IamaWAWalker

LoanSafe Member
Apr 20, 2012
143
2
0
Is there a thread somewhere with examples of cease and desist letters that people have used? That would be super helpful...
 

shobam

LoanSafe Member
Nov 25, 2010
373
1
0
Massachusetts
Is there a thread somewhere with examples of cease and desist letters that people have used? That would be super helpful...
If done correctly a cease and desist letter is your first step in working out a favorable settlement. I sent one and carefully worded everything. If you like i can show you mine and explain why I wrote what I wrote. I'm not an Attorney nor and I an expert nor do I play either on TV. Just a guy who learned how to deal with these collection types the hard way.
 

jbutterfly3

LoanSafe Member
Aug 15, 2009
103
0
0
We sent one to our second lender after they called my husbands work number.
He stated to contact us via email or US mail, we received no further calls or letters other than our mo statements.
About a month after the C D letter we were served for breach of contract and are still dealing with it.
We are in Cali and thankfully the law is on our side so we are confident we will prevail.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Here is a sample C&D for you;

Fair Debt Collection Practices Act (FDCPA) - Federal Law

15 USC 1692c
§ 805. Communication in connection with debt collection

(a) COMMUNICATION WITH THE CONSUMER GENERALLY.
Without the prior consent of the consumer given
directly to the debt collector or the express permission of
a court of competent jurisdiction, a debt collector may not
communicate with a consumer in connection with the collection
of any debt;

(1) at any unusual time or place or a time or place known
or which should be known to be inconvenient to the
consumer. In the absence of knowledge of circumstances
to the contrary, a debt collector shall assume that the
convenient time for communicating with a consumer
is after 8 o’clock antimeridian and before 9 o’clock
postmeridian, local time at the consumer’s location;

(3) at the consumer’s place of employment if the debt collector
knows or has reason to know that the consumer’s
employer prohibits the consumer from receiving such
communication.


Sample Debt Collection Cease and Desist Letter



Today's Date
Your Name
Your Address
You Loan Number

Collector's Name
Collector's Address



Dear Debt Collector, (Insert Name)


I am writing to request that you cease your communication with me. The Fair Debt Collection Practices Act specifically states in Section 805(c), referencing ceasing communication that you must cease all communication with me after being notified in writing that I no longer wish to communicate with you.


Therefore, I require that you stop calling me at work. In addition, do not call or communicate with any third party acquaintance of mine per section 805(b)2 of the Fair Debt Collection Practices Act.


According to the FDCPA’s federal guidelines, I understand that once you receive this letter, you may only contact me to inform me that you:


  • are terminating further collection efforts
  • are invoking specified remedies that are ordinarily invoked by you or your company
  • intend to invoke a specified remedy.
Be advised that I am aware of my rights, and that I am keeping records of all correspondence and communication from you and your company, including tape recording all phone calls. If you continue calling me, I will pursue all available legal actions to stop you from harassing me and my family.


Signature
Your Printed Name
 

IamaWAWalker

LoanSafe Member
Apr 20, 2012
143
2
0
Any and ALL examples would be awesome! I don't care if they communicate by mail, I just don't want them calling myself, hubby's work, friends/family. Do you think the above letter might make the lenders angry? I REALLY don't want them spitefully doing things like deciding to foreclose judicially because I made the wrong person angry.. LOL
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
No, it is within your rights as I have outlined in my post.
 

IamaWAWalker

LoanSafe Member
Apr 20, 2012
143
2
0
If done correctly a cease and desist letter is your first step in working out a favorable settlement. I sent one and carefully worded everything. If you like i can show you mine and explain why I wrote what I wrote. I'm not an Attorney nor and I an expert nor do I play either on TV. Just a guy who learned how to deal with these collection types the hard way.
I would love to see your letter! And the explanations would be extremely helpful too!
 

IamaWAWalker

LoanSafe Member
Apr 20, 2012
143
2
0
No, it is within your rights as I have outlined in my post.
When sending a letter like the one you mentioned, should I also attach the laws to it like you did, or was that purely for my benefit and leave them off because they are aware of the laws and just mentioning them should advise them that I am aware of my rights and not to mess with me?
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
You wouldn't need to do that. I just included that information as it applies to the law that states what they would need to stop as collectors once they receive the letter.
 

LandOnMyFeet

LoanSafe Member
Oct 4, 2016
25
0
1
60
Here is a sample C&D for you;

Fair Debt Collection Practices Act (FDCPA) - Federal Law

15 USC 1692c
§ 805. Communication in connection with debt collection

(a) COMMUNICATION WITH THE CONSUMER GENERALLY.
Without the prior consent of the consumer given
directly to the debt collector or the express permission of
a court of competent jurisdiction, a debt collector may not
communicate with a consumer in connection with the collection
of any debt;

(1) at any unusual time or place or a time or place known
or which should be known to be inconvenient to the
consumer. In the absence of knowledge of circumstances
to the contrary, a debt collector shall assume that the
convenient time for communicating with a consumer
is after 8 o’clock antimeridian and before 9 o’clock
postmeridian, local time at the consumer’s location;

(3) at the consumer’s place of employment if the debt collector
knows or has reason to know that the consumer’s
employer prohibits the consumer from receiving such
communication.


Sample Debt Collection Cease and Desist Letter



Today's Date
Your Name
Your Address
You Loan Number

Collector's Name
Collector's Address



Dear Debt Collector, (Insert Name)


I am writing to request that you cease your communication with me. The Fair Debt Collection Practices Act specifically states in Section 805(c), referencing ceasing communication that you must cease all communication with me after being notified in writing that I no longer wish to communicate with you.


Therefore, I require that you stop calling me at work. In addition, do not call or communicate with any third party acquaintance of mine per section 805(b)2 of the Fair Debt Collection Practices Act.


According to the FDCPA’s federal guidelines, I understand that once you receive this letter, you may only contact me to inform me that you:


  • are terminating further collection efforts
  • are invoking specified remedies that are ordinarily invoked by you or your company
  • intend to invoke a specified remedy.
Be advised that I am aware of my rights, and that I am keeping records of all correspondence and communication from you and your company, including tape recording all phone calls. If you continue calling me, I will pursue all available legal actions to stop you from harassing me and my family.


Signature
Your Printed Name

Can you still engage the lender or servicer regarding a loan modification after you have sent them a cease and desist letter. The loan modification package always claims its an attempt to collect a debt so I'm wondering if its worth sending in any info.