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Question on cease and desist.

Established Member

Question on cease and desist.

Hi,

 

I sent this company Jefferson Collection a cease and desist letter one month ago. i've requested debt validation from them and they've never validated. (I don't recall receiving an initial dunning notice) Today, I have a letter in the mail from another collection company, collecting on Jefferson Collection's behalf. This is concerning the same debt I sent a letter requesting validation( never received from collection agency) and a cease and desist letter. This company says I they are collecting on Jefferson Collections behalf and I have 30 days to request for debt validation. I want to sue, but not sure if I will win! Please advise... Should I request for debt validation.

6 REPLIES
Moderator Emeritus

Re: Question on cease and desist.

They have received a C&S letter and assigned it to another CA?  I know they can still sell and show up with another one, but not sure about assigned.  Maybe someone will chime in on that one, seems like they're skirting the rules.

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Established Member

Re: Question on cease and desist.

The letter says Jefferson Collection still owns the account, but has given them permissio (the other collection agency)  to collect on their behalf.

Moderator Emeritus

Re: Question on cease and desist.

You would need to get an expert opinion, but I believe that would be a violation of a cease and desist.  Just have someone else call for you I don't think will cut it.  

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.
Established Member

Re: Question on cease and desist.

Does sound complicated!! Lol

Community Leader
Epic Contributor

Re: Question on cease and desist.

The term "cease and desist" is probably the source of your confusion.

 

A consumer cannot unilaterally send a requirement that a debt collector cease their collection efforts, or desist in any actions that are not a violation of any statute or regulation.  Collection is their business and right, provided they comply with all requirements of statute and regulation.

 

What the consumer can do is to send a "cease communication" letter under the provisions of FDCPA 805(c).  That letter bars the debt collector from continuing any communications with the consumer, but is not a bar of other legitimate collection activities.  Referring the debt to another debt collector is a legitimate collection activity, and the cease communication letter sent to debt collector 1 does not carry over to debt collector 2.

 

If the consumer has sent the debt collector a timely request for debt validation, that invokes a total cease collection bar on them, making the need for any cease communication letter redundant until they have chosen to validate.  A cease collection bar is more comprehensive than a simple cease connunication bar.

However, referral to another debt collector has not been deemed to be a barred collection on the debt, so is not a violation of their cease collection bar. 

 

Once the new debt collector enters the picture, both the DV and any cease communication process begins anew with them.

 

I see no current violation of the FCRA or FDCPA.

 

If you send the new debt collector a DV request, that will invoke a cease collection bar on them until such time as they provide the reqested validation.

That bar includes their reporting to the CRA.

 

 

New Member

Re: Question on cease and desist.

This is correct, under the FDCPA the collector may either cease collection or validate the debt once a validation request is received.  The collector in your instance owns the debt now but has decided not to valid, so they have likely farme the debt collection out to a third-party.  Since you have received a new dunning notice send a dv letter to new collector.  This should stop communication from them until they can validate.