cease collection letter
A written demand that a debt collector stop all contact — legally binding under the FDCPA.
Example
“The cease collection letter stopped all calls and letters within five business days.”
Memory Tip
CEASE — send it in writing. They must stop all contact once received.
Why It Matters
Understanding cease collection letters is crucial because it is one of the most powerful consumer protections available under federal law. Once you send this letter, debt collectors must stop contacting you, which can relieve significant stress and help you regain control of your financial situation.
Common Misconception
Many people believe that sending a cease collection letter makes their debt disappear or eliminates what they owe. In reality, the letter only stops contact attempts and does not erase the debt, and collectors can still pursue legal action or report the debt to credit bureaus.
In Practice
If you owe 5000 dollars to a credit card company and receive 10 calls per week from a debt collector, you can send a cease collection letter via certified mail. Once received, the collector must stop calling and contacting you within five business days, though they may still attempt to collect through a lawsuit if they choose to pursue that option.
Etymology
From the Fair Debt Collection Practices Act — your right to silence collectors.
Common Misspellings
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