(The following does not constitute legal, financial, or tax advice. It is for educational purposes only and PayingPaul.Com makes no guarantees about the accuracy of anything included. For legal, financial, or tax advice, please consult someone licensed in these areas).
Free, Sample Letters to Debt Collectors & Creditors
Debt Settlement Letters
When dealing with debt collection agencies having everything in writing is of the upmost importance. That means when you agree to a settle a credit card debt , you must receive a debt settlement letter before you ever disburse the funds to satisfy the balance. If the creditor refuses to provide one, you can request that they sign and mail back the following letter. If they refuse to do this, you are most likely better off using the services of a debt negotiation company . Oftentimes but not always a collector will take a third party debt professional more seriously.
Debt Validation Letters (Aka Dispute Letters)
Under the Fair Debt Collection Practices Act (FDCPA) (a third party debt collection agency is required in the first written communication with the following information: 1) the amount owed; 2) the name of the creditor who the debt is owed to; 3) that unless the debtor disputes the validity of the debt within 30 days of receipt of the letter, it will be assumed the debt is valid; 4) a statement that if the consumer notifies dispute the debt in writing within the 30 day period mentioned above, the collection agency is required to obtain verification of the debt or a copy of a judgment against the consumer and mail a copy to the debtor. Once a debt is disputed a debt collector is required to stop their collection efforts until the debt is in fact validated.
The best time to use debt validation letters is when the debt has been bought or sold. Oftentimes under these circumstances the creditors do not have any records of the debt because it was bought in a large portfolio of other debts.
Cease Communication Letters (aka Cease & Desist Letters)
Under the FDCPA, a third-party collection agency is required to honor written “Cease & Desist” requests from consumers. A “Cease & Desist” is a formal way of telling the creditor to stop calling you. Under this provision a collector is only allowed to contact you to advise you that 1) they have terminated collection efforts or 2) to notify the debtor that they intend to invoke specific remedies (normally “charging off” the account, sending it to another collection agency, or sending the account to a law firm), etc.
It should be noted that using a Cease Communication letter can often lead to escalated collection activity, which normally means your account could be sent to a collection attorney licensed in your state. That is, the creditor will sometimes react in the following manner: “If this person isn’t going to allow me to even talk to them about the debt, I have no other option but force them to talk to me about it in court.” For this reason, Cease & Desist letters should only be used in extreme cases of harassment.
Sample Lawsuit Answer Letters
One is not required but should typically file an answer when they have been served papers and summons to court. Depending on your state, you will either be mailed the papers or handed the summons by a “process server” or by your local sheriff. In most states the defendant will have between 20 and 30 days to respond, but you should read the complaint to get information about what your exact timeline is. If you do not respond to the complaint in time, the creditor can obtain a default judgment against you, which, depending on your state, can be used to garnish your wages, put a lien on your property, and/or levy your bank account(s). Typically you will have to pay a filing fee in order to file an answer to the complaint.
In order to respond to the complaint, typically the defendant is required to file formal legal papers with the court called an “Answer.” An “Answer” will have your defense to any of the claims of the creditor in the “Complaint.”