When Debt Collector Must stop

When Debt Collection Efforts Must Cease

If a consumer tells a collector to cease communication, the collector must stop all attempts to contact the consumer. This can happen in two different situations.

The first situation occurs when the consumer asks the collector to stop. A consumer may at any time write a letter to the debt collector telling him to stop, or telling the collector that the consumer refuses to pay the debt. Once the consumer’s letter is received, the collector may contact the consumer only in the following circumstances:

• To notify the consumer that the collector will no longer attempt to collect on the debt.
• To notify the consumer that the collector may invoke specific remedies
• To notify the consumer that the collector intends to invoke a specific remedy

The second situation comes about when the consumer disputes the debt within 30 days of the collector’s initial communication. If the customer sends a letter that disputes the debt, whether in whole or in part, the collector must cease contact with the consumer until the collector obtains verification of the debt. Once the collector mails the verification to the consumer, the collector can resume contact.

Legal Consequences

Debt collectors who violate the FDCPA may be sued in state or federal court.

• An individual may sue the collector within one year from the date the violation occurred. if the consumer wins the lawsuit, he may collect damages plus up to $1,000 from the debt collector.
• A group of people may also file a class action against a debt collector and recover damages up to $500,000, or one percent of the collector’s net worth, whichever is less. This is in addition to the amount each plaintiff could recover.