Writing a Cease and Desist Letter to Collection Agency (with Sample)
Use this sample cease and desist letter to collection agency as a template for your formal notification.
Last updated on November 11, 2020
When a consumer receives a debt collection letter from a collection agency in the mail, it may be unsettling, especially if the consumer did not incur the debt. If the consumer ignores the debt collection letter, it will not go away. In fact, it may result in a negative statement to a credit bureau and be recorded on the consumer’s credit report.
According to the Fair Debt Collection Practices Act (FDCPA) that controls collection agencies, consumers may dispute debts if they send a collection agency dispute letter within 30 days of receiving the notice. If a dispute letter is sent, the collection agency cannot contact the consumer or try to collect the debt. If the collection agency can verify the debt, it can resume collection activities.
According to the Fair Debt Collection Practices Act (FDCPA) that controls collection agencies, consumers may dispute debts if they send a collection agency dispute letter within 30 days of receiving the notice. If a dispute letter is sent, the collection agency cannot contact the consumer or try to collect the debt. If the collection agency can verify the debt, it can resume collection activities.
The consumer should keep copies of all correspondence with the collection agency and with the original creditor if applicable. This also includes any voice mail and dates and times of phone conversations as well as the name of the person to whom the consumer spoke.
However, it is recommended to limit the amount of talk with a debt collector over the phone. Debts have an expiration date and after that date, they should no longer appear on the consumer’s credit report. However, they can be reopened or re-aged if the consumer agrees to make even a partial payment over the phone. If the consumer gets flustered and doesn’t know what to say over the phone, he or she should just hang up. If the collection agency is in the wrong, the records of communication will become essential in a court case.
First Step
The first step is to get the information in writing. The collection agency is required to provide written notice to the consumer within five days of sending the collection letter that includes the name of the creditor, the amount of the debt and instructions for refuting the debt. The consumer should be absolutely sure that the debt is wrong and not something that is accurate that they overlooked.
The letter should be very specific about the account that is being disputed. A copy of the credit report or bill that was sent to the consumer may be included with the letter. The consumer’s contact information should be clearly stated in the letter. Any details such as the account number given by the collection agency that does not belong to the consumer should be given. As with any professional letter, the tone should be courteous and polite even if the consumer is angry that he or she is being hassled over an invalid debt.
Below is a sample of a collection agency dispute letter. It is a legal document and should be written as a formal business letter. It should be typed and printed from a computer and have accurate spelling and grammar. The letter can be sent by certified mail with a receipt request, so the consumer is sure it was received by the right person. When the receipt request arrives, the consumer should call the agency to make sure the letter was read and the necessary steps are being taken. The collection agency may request further documents or information.
Sample Collection Agency Dispute Letter
Consumer’s Name
Consumer’s Address
City, State, Zip Code
DATE
Collector’s Name
Collector’s Address
City, State, Zip Code
RE: Dispute of debt on account number NUMBER.
Dear Debt Collection Agent:
This letter is a formal dispute for the debt you have listed on my Name of Credit Card. According to the Fair Debt Collection Practices Act (FDCPA), I am allowed to request in writing that you validate the debt. I request that you provide competent evidence that I owe the debt and send me the following information:
• The amount of the debt
• Copies of documents that show I agreed to pay the debt
• The identity of the original creditor
• Proof that the Statute of Limitations has not expired on this account
• Proof that you are licensed to collect in my state
• Your license numbers and registered agent
According to the law, I am sending this letter within 30 days of DATE when I first received your collection notice. If you have unfairly reported this debt to the three major Credit Bureaus, it may constitute fraud. Please validate the debt or remove it from my credit report at all three bureaus.
You may not add any fees or interest to the debt unless it is specified by state law or the original contract. If you continue to try to collect this debt without giving proper validation, you will be violating the FDCPA. If you do not own this debt, please send a copy of this letter to the original creditor.
I can be reached at [Phone Number] or at [Email Address]. I expect to hear from you in writing within five days.
Sincerely,
Signature of Consumer
Printed Name of Consumer
By Andre Bradley
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Consumer’s Name
Consumer’s Address
City, State, Zip Code
DATE
Collector’s Name
Collector’s Address
City, State, Zip Code
RE: Dispute of debt on account number NUMBER.
Dear Debt Collection Agent:
This letter is a formal dispute for the debt you have listed on my Name of Credit Card. According to the Fair Debt Collection Practices Act (FDCPA), I am allowed to request in writing that you validate the debt. I request that you provide competent evidence that I owe the debt and send me the following information:
• The amount of the debt
• Copies of documents that show I agreed to pay the debt
• The identity of the original creditor
• Proof that the Statute of Limitations has not expired on this account
• Proof that you are licensed to collect in my state
• Your license numbers and registered agent
According to the law, I am sending this letter within 30 days of DATE when I first received your collection notice. If you have unfairly reported this debt to the three major Credit Bureaus, it may constitute fraud. Please validate the debt or remove it from my credit report at all three bureaus.
You may not add any fees or interest to the debt unless it is specified by state law or the original contract. If you continue to try to collect this debt without giving proper validation, you will be violating the FDCPA. If you do not own this debt, please send a copy of this letter to the original creditor.
I can be reached at [Phone Number] or at [Email Address]. I expect to hear from you in writing within five days.
Sincerely,
Signature of Consumer
Printed Name of Consumer
By Andre Bradley
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