Epic Contributor
Posts: 21,296
Registered: ‎03-19-2007
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.