Collection Calls to Me and Others

[swm2win]

What is the name of your state? PA

I have a few debts out there that are with CA's, and believe it or not, I would like to do the right thing and discuss paying them off.

However, I would prefer to handle all correspondence in writing via mail. Is it legal and an available option for me to tell agencies that they do not have my permission to contact me by phone, but I wish to work with them through mail. I will gladly give them my address, and respond that way – but I do not wish to deal with them on the phone. I guess what I’m asking is this: can you send them a “cease and desist by phone” letter?

Also, is there a way relatives can make sure they do not continue to call them? I have read and understand that they may call if they do not feel that they have been given accurate information, but can they keep calling if they know my address?

[Debt Guy]

I guess what I’m asking is this: can you send them a “cease and desist by phone” letter?

There is a huge debate about the answer to this question. Some say yes and some say no and both sides are absolutely convinced they are right.

Truth is, the answer is murky. The FDCPA uses words to the effect of "cease and desist all contact". There is nothing clear in the FDCPA that gives you the right to "cease and desist a specific form of contact".

I knew a person once who asked the CA to cease and desist sending her brainwave messages. I told her she needed a to wear a tin foil hat. Seemed to work.

Collection agencies are big machines. The first line collectors are not allowed to think or act independently. Supervisors may have some lattitude but are pretty reticent to use their time on one debtor since their job is to crack the whip over a team of collectors and make the money move.

CAs do business by phone. That is the way they are set up and organized. Doing business by mail is to them a big pain and (in their minds) a waste of time. It is also expensive.

In my experience, some CAs will treat this "limited" C&D as a "full" C&D and some will just plain ingore the limited C&D on the premise that there is not any such thing.

I have never yet seen one who "honored" the "limited C&D". I have seen posters on this and other boards who said they were going to sue the CA for failure to honor their limited C&D. I've not seen anything from anyone who actually followed through on the threat. In my mind, the value of such a suit would be highly dubious and could in fact backfire on the debtor.

As always, the dangerous thing about a C&D is that you have taken away the ability of the CA to communicate with you. The only tool left in the toolbox is the lawsuit. Often, the C&D results in filing the lawsuit. You should evaluate that potential carefully. It always gets more expensive once the suit has been filed.

Personally, I think you are worrying too much about talking to the CA on the phone. Some rules to follow are:

1. Plan the call. Know what your limits are. Make an offer lower than your max. It is a negotiation so be prepared for some give and take. If they want more than you can do, just say thanks and hang up. You always have the option to say, "let me think about it and get back with you".

2. Expect that you might go back and forth several times with the collector. They will be in a rush to force you to a quick decision. Don't allow yourself to be rushed. You can control the conversation.

3. Never ever send money or allow anyone to draft your bank account until you have the agreement in writing. 99% of CAs will send you a settlement letter by fax. Once you get the letter and agree with the terms, it is OK to send money. Keep copies of everything including copies of the cancelled check, etc. "If it ain't in writing, it never happened."

is there a way relatives can make sure they do not continue to call them? I have read and understand that they may call if they do not feel that they have been given accurate information, but can they keep calling if they know my address?

Yes. Send a certified letter to the CA (return receipt requested) and give me your updated address and phone number and tell them that this is the only number where you may be reached.

The only legal reason a collector could call a relative is if they don't know how to reach you. Once they know who to reach you and they call any 3rd party, then you would have gounds for an FDCPA violation. Of course, they may never discuss the debt with any 3rd party (except your spouse in most states).

Again, the issue for the CA is not so much they know your address but that they know your phone number. Even if you give them your phone number but then never answer the phone, then they can reasonably assume that the number is bad and go back to trying to track you down in other ways. From their view, it is all about communication.