Re: Anyone know about cease and desist letters?
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Posted by Bob on July 31, 2001 at 19:53:33:
In Reply to: Anyone know about cease and desist letters? posted by David on July 30, 2001 at 14:04:27:
No, you cannot "negate" a debt just by sending a cease-contact letter. For regular unsecured bad debts (like defaulted credit cards), there is a Statute Of Limitations, which is the time limit for the creditor to file a lawsuit. This time limit is set by each state. Also with regular unsecured bad debts, the federal Fair Debt Collection Practices Act restricts what third-party collection agencies can and cannot do. This is where a cease-contact letter might be useful. However, if your old debt is from a student loan, things get more complicated. If there was some kind of government agency involved, then they can do a lot more than a collection agency (e.g. the government doesn't need to sue debtors before grabbing assets.) You might be able to brush off a collection agency, but the underlying debt is much harder to avoid. Here is an article on dealing with third-party collection agencies (including the basis for cease-contact letters)...
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