Sample of Debt Validation Letter w/limited Cease and Desist

[frogger]

An unsophisticated debtor has a name in CA world: low hanging fruit, or easy pickin's.

Also known as "cream". The cream rises to the top and is easy to skim off. The first collection agency creams the accounts to get the easy ones. The second collection agency creams them again. By the time you get to the third and later collection agencies, you have the real winners.

Bottom feeders.

If you're going to play with collection agencies, understand the game that you are playing. They are more experienced than you. They have heard it all. They have seen it all.

It just depends on how bad that want you and what you've got.

[flyinbroke]

I noticed that GE likes small claims court (and loved Mann Bracken), but usually wound up dismissed if the defendant answered and showed up in court. Maybe because the original apps disappeared into the wind and that is a huge issue. I am pretty much collection proof, can't garnish squat, and with the insane property taxes here, will likely remain collection proof. TX people are pretty untouchable with regard to exemptions and I really don't collect jewels or fine art.

Still, best to keep those letters short and sweet. And keep them in the computer for the next CA to come along....I plan on sinking like a stone and remaining skim proof.

[frogger]

I noticed that GE likes small claims court (and loved Mann Bracken), but usually wound up dismissed if the defendant answered and showed up in court.

All are not that way, but many do use the "spray and pray" method of filing suits. They are counting on the defendant not showing up, for most do not.

It's a pretty good bet on the part of the CA.

[flyinbroke]

Well they did get a lot of default judgments from the "No Answer" crowd. With a small claims limit of 10K it is really stupid to not respond or show up in court.

(Me? Their hired gun CA violated by calling my cell phone 22 times AFTER receiving the CD letter; 22x1500=33000 through TCPA, plus 22000 for all the attempts to collect through the FDCPA. Wonder if they will settle for 10K and make the debt go buh-byeee instead.)

[GoingDown]

Having sent out more than 30 DV letters, the shorter the better. It is a good idea one requests only what one is entitled to under the law. The faux copy by the OP may have had an impact a few years ago before more folks began sending DV requests, but I would think most CA/JDB firms have seen it so much the most it might get is a good cackle.

In terms of "limited cease-and-desist," my experience has been that not every CA/JDB treats this as a full C&D. I have received several (3-4) DV's after requesting the CA/JDB contact me only by US mail. In each of the cases where I have received debt validation, the accounts have been sent to attorney firms, 3 of which have sued me.

I hypothesize that once a collection attorney (licensed to practice in my state) has reasonable verification and probably original documentation, they file suit against me knowing I am employed with reasonable salary.

I think that is the main thing they look for before they sue.

#1 there is an income stream so they might get paid.
#2 most people are a bit worried about their employer getting mad at them if their wages get garnished, so it makes them shake loose any extra cash they might have lying around somewhere, or it makes them get a loan from anyone (perhaps a relative) and pay this before their wages get garnished.

[flyinbroke]

Yeah, 100 percent of my income is exempt. My wages are, my disability is, my pension is. I am sure this puts a damper on the "should we sue or not" and could be why small claims is so popular here--easy to shake loose a few thousand than the big bills. Even if they get a judgment the max interest charged here is 5 percent, which is usually lower than what they are charging.

[ryan]

I think that is the main thing they look for before they sue.

#1 there is an income stream so they might get paid.

Makes a lot of sense, GoingDown.

I wonder if there are many fewer debt lawsuits, in general, in a state like Texas, because wage garnishment is largely not an available tactic to creditors?

[flyinbroke]

THere are still quite a few suits here...most are small claims and most get default judgments. I would imagine in TX they look for homeowners and such...even though homesteading exemptions would also place a damper.

[treehugger1]

Here in Oregon, small claims courts do not allow attorneys. Small claims is restricted to the plaintiff and the defendant. Legal counsel is not allowed.

Some of the smaller businesses and the local CA make use of small claims. They are all very good at it.

In my opinion, Cap1 instructing their attorney to sue over a $3K debt versus a $12K debt had nothing to do with small claims. I'm not sure what the choice was based on. In both cases, the suits are eligible for mandatory state arbitration, should I choose to file an answer. Both parties have to pay toward arbitration, so I am confused as to why the suit for the smaller amount. Unless the smaller amount is a fishing expedition suit.

[treehugger1]

Here is a simplified version:

CA/JDB/Collection Attorney
ADDRESS #########
DATE########
RE: Debt Collection Notice and Cease and Desist Telephone
Communications
Your Listed Account Number: ##########

To Whom It May Concern:

I recently received correspondence from your company; letter dated ######## (see attached). You have clearly identified yourself as a debt collection company.

Be advised that this letter is being sent pursuant to the Fair Debt Collection Practices Act and the Oregon Revised Statutes.

I am disputing this alleged debt in its entirety and require validation as allowed by state and/or federal law.

Under both State and Federal laws, I am entitled to debt verification. I am requesting that you provide me with such verification.

In addition to the above request, please provide me with the complete name and complete address of original creditor.

You are to cease all telephone communication.

I am stating here that no telephone contact be made by your offices to my home phone, cell phone, or to my place of employment. If your office(s) attempt(s) telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment.

All future communications with me must be done in writing and sent to the address noted below.

Please be advised that I reserve the right to track and record all telephone communications, including voice mail and messages.

Best Regards,

NAME#########

ADDRESS#######
US MAIL RETURN RECEIPT NUMBER: