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Any advice before C&D letters?

Established Contributor

Any advice before C&D letters?

HI all.

 

Unfortunately, most of the CAs I'm dealing with have legally validated my debt. Still fighting with Asset Acceptance, but that's another story.  So the rest, Midland, Resurgent and Portfolio have sent the at least the minimum for debt validation.  My next thought was a C&D letter in the hopes they would sell the debt to someone who wouldn't buy the documentation.  After they sell, they will have to remove from CR and I can deal with the JDB that buys it.  Most are past SOL in Texas.  I will handle the remaining 3 still in SOL differently.

 

Thoughts?

I don't know my start scores, but low 500s. 6/2013

2/19/15
EQ FAKO - 638
EX FICO - 665
TU FICO - 697
Message 1 of 9
8 REPLIES
Senior Contributor

Re: Any advice before C&D letters?

Cease and Desist letters will only stop them from calling or sending letters. If they are within the CRTP they can still list the debt on your credit reports. Unpaid debt never goes away and will be sold over and over again until its paid. 

Message 2 of 9
Highlighted
Moderator Emeritus

Re: Any advice before C&D letters?


DaBears wrote:

Cease and Desist letters will only stop them from calling or sending letters. If they are within the CRTP they can still list the debt on your credit reports. Unpaid debt never goes away and will be sold over and over again until its paid. 


Yes, but I think I see his thought patterns on this one.  Interesting, and nothing illegal or against the rules of doing this.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 3 of 9
Established Contributor

Re: Any advice before C&D letters?


Shogun wrote:

DaBears wrote:

Cease and Desist letters will only stop them from calling or sending letters. If they are within the CRTP they can still list the debt on your credit reports. Unpaid debt never goes away and will be sold over and over again until its paid. 


Yes, but I think I see his thought patterns on this one.  Interesting, and nothing illegal or against the rules of doing this.


Exactly.  I know it doesn't go away, but if they sell, they have to remove the TL.  Assuming they do sell, I can keep this pattern going till the 7 years are up.  I'd love to do a PFD or PIF and GW to death, but everything combined is around $17 or $18k.  That would take me years,  CRTP is up on most of it in about 2 years.

I don't know my start scores, but low 500s. 6/2013

2/19/15
EQ FAKO - 638
EX FICO - 665
TU FICO - 697
Message 4 of 9
Senior Contributor

Re: Any advice before C&D letters?


Shokk wrote:

Shogun wrote:

DaBears wrote:

Cease and Desist letters will only stop them from calling or sending letters. If they are within the CRTP they can still list the debt on your credit reports. Unpaid debt never goes away and will be sold over and over again until its paid. 


Yes, but I think I see his thought patterns on this one.  Interesting, and nothing illegal or against the rules of doing this.


Exactly.  I know it doesn't go away, but if they sell, they have to remove the TL.  Assuming they do sell, I can keep this pattern going till the 7 years are up.  I'd love to do a PFD or PIF and GW to death, but everything combined is around $17 or $18k.  That would take me years,  CRTP is up on most of it in about 2 years.


Not arguing it's illegal or anything. just stating that's what a ceast and desist letter does Smiley Wink

Message 5 of 9
Community Leader
Epic Contributor

Re: Any advice before C&D letters?

The presumption is that sale of the debt requires them to delete their prior reporting of having had collection authority on the debt.

 

Nothing in statute or regulation requires deletion of their piror reporting based on termination of their collection on the debt.

They are required to close their collection, and report a current balance of $0 under collection.

 

One can notify a debt collector under FDCPA 805(c) to cease communication with the consumer, but cannot notify them to cease their legitimate business of any other authorized activities related to collection on the debt, such as credit reporting or inquiries for the consumer's credit report.

If a cease communication bar is imposed, then they will also be precluded from any negotiations on payment of the debt if you should decide to make a PFD offer.

Message 6 of 9
Established Contributor

Re: Any advice before C&D letters?


RobertEG wrote:

The presumption is that sale of the debt requires them to delete their prior reporting of having had collection authority on the debt.

 

Nothing in statute or regulation requires deletion of their piror reporting based on termination of their collection on the debt.

They are required to close their collection, and report a current balance of $0 under collection.

 

One can notify a debt collector under FDCPA 805(c) to cease communication with the consumer, but cannot notify them to cease their legitimate business of any other authorized activities related to collection on the debt, such as credit reporting or inquiries for the consumer's credit report.

If a cease communication bar is imposed, then they will also be precluded from any negotiations on payment of the debt if you should decide to make a PFD offer.


Agreed.  Correct me if I'm wrong here. once they sell the debt, they can no longer have a right to collect.  Isn't having the negative TL on a CR an attempt to collect?  They may not remove, but a dispute with the CRA at that point should take care it. The previous CA will not legally be able to verify the debt.

I don't know my start scores, but low 500s. 6/2013

2/19/15
EQ FAKO - 638
EX FICO - 665
TU FICO - 697
Message 7 of 9
Moderator Emeritus

Re: Any advice before C&D letters?

If the debt is sold, they should remove.  Yes.  I wouldn't dispute with the CRA, I'd do a direct dispute with the CA.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 8 of 9
Epic Contributor

Re: Any advice before C&D letters?

If a CA sells the debt they must remove their reporting.  The FCRA nor the FDCPA covers this but the Credit Reporting Resource Guide does.  It is governed by the CDIA.

Message 9 of 9