Legal Reference Blog by Renee C. Walsh, Esq.

14/02: How To Deal With Debt Collectors

There is a way to stop the debt collectors from contacting you, with one hitch. If you use the method, then the collector's only option is to take you to court.


This method works whether the debt collector is a creditor or a lawyer for the creditor. The way to stop the collectors from contacting you is to write the following letter. Once the creditor receives the letter, the debt collection practices acts mandate that he must cease all efforts to communicate with you other than to sue you in court. If you are sued and the creditor proves that you owe the money claimed, the creditor may receive a Judgment for the amount owed plus his costs in taking you to court. Once the creditor has a Judgment, he can attempt to collect from you for the Judgment, but he must comply with the debt collection practices acts. Thereafter, he may receive a garnishment order and intercept your income.

Send the following letter by certified mail keeping a copy for yourself:

Date:_____________________

____________ (Insert creditor name)
____________ (Insert creditor address)
____________

Re: (Insert your name and account number)

Dear Sir or Madam:

I received your letter (or telephone message) of (insert date), in which you demand payment on the referenced account. I do not admit that I owe the debt. Even if it was determined that I am responsible for the debt, I cannot make any payment. In my present economic circumstances, I have no income or assets from which to pay. Therefore, as provided for under the law, 15 USC 1692C, I hereby notify you in writing to cease all communication with me, or anyone else in regards to the debt. If you continue to make efforts to communicate with me, other than as provided by the Federal and Michigan Fair Debt Collection Practices Acts, you will provide the foundation for a lawsuit against you which will subject you to penalties including attorney fees, as provided in the Acts. Furthermore, your communication may also constitute a violation of the Michigan Consumer Protection Act with associated penalties and fees.

(You may also add pertinent information that will prove to the creditor that you do not have any income from which to pay the debt. This may include, for example, the fact that you are living on a Veteran's Pension, SSI or ADC, and/or the fact that you rent your home and do not have a car.)

Sincerely,

(Your signature)