Question on cease and desist.

[chozen28]

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.

[Shogun]

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.

[chozen28]

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

[Shogun]

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.  

[chozen28]

Does sound complicated!! Lol

[RobertEG]

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.

[Anonymous]

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.