Ways to Stop Debt Collection

• Head off harassment before it happens. Warning letters from creditors should never be ignored. Creditors don't forget about a bill just because you fail to respond. Contact the creditor, a phone call should be fine, to make a good faith effort to arrange payment terms you can meet. If you genuinely cannot pay, be honest with creditors and let them know when you will be able to pay.
  
  
• The cease and desist letter. Assuming your contact with the creditor did not get you the result you want, the simplest way to stop collection harassment is to write the collector a cease and desist letter. Federal law requires collection agencies to stop their collection efforts after they receive a written request to stop. The federal law does not apply to creditors collecting their own debt, but they too will sometimes honor such a request. You do not have to give any special reason why the collector should cease contact; however we recommend you explain why you cannot pay and to say what your future payment plans are.
  Note: It is a good idea to send your letter via certified mail, so that you have proof of delivery.
  
  
• The lawyer's letter. You do not need a lawyer to send a cease and desist letter. However, if your cease and desist letter does not stop collection calls, a letter from your lawyer will usually do the trick. Collection agencies must stop contacting a consumer known to be represented by a lawyer, as long as the lawyer timely responds to collection inquiries.
  
  
• Payment plan. The most common approach is to try to work out some kind of payment arrangement. First make sure you could pay the bill now in light of all your other debts (food, clothing and shelter should be priority). If you conclude you can pay, always offer to settle the debt for an amount that is far less than what the collector is asking, even if the original debt owed is correct. Typically the collector, at first, will not be interested in a payment plan. He/she will insist on full payment and proceed to make all kinds of outrageous suggestions. If you resist his/her suggestions, eventually most collectors will agree to a reduced amount and an installment plan.
  
  
• Complain about billing errors. Collection letters often contain errors, sometimes misstating the amount due, account number, or the debtor's name. It is not uncommon for errors to occur because of a similar or same name. When a collection letter contains a mistake, write a request to have it corrected. Collection agencies, by law, must inform you of your right to dispute the debt. They must do so the first time they communicate with you or within a few days after first communicating with you about the debt. If you dispute the debt in writing within the next thirty days, the collection agency must stop collection efforts while it investigates.