The truth is that there are no magic words to stop a debt collector from collecting the debt. In case you are wondering what the 11 word phrase to stop debt collectors is supposed to be its “Please cease and desist all calls and contact with me immediately.”
Use this 11-word phrase to stop debt collectors: “Please cease and desist all calls and contact with me immediately.” You can use this phrase over the phone, in an email or letter, or both.
Don't give a collector any personal financial information, make a "good faith" payment, make promises to pay, or admit the debt is valid. You don't want to make it easier for the collector to get access to your money, or do anything that might revive the statute of limitations.
Send a 'drop dead' letter
You have the right to ask them to stop contacting you. To do so, you can send what's sometimes referred to as a “drop dead letter” — a written notice to the debt collector informing them you want no further contact. By law, debt collectors are required to follow this request.
If the agency can't provide proof, you owe the money, by law, they must stop collection efforts. If you don't owe the bill, don't pay anything — ever. Even if you're willing to pay cash so the agency will go away, it's not a good idea. Payment is considered an acknowledgment that you are responsible.
If you don't pay a debt collector or collection agency, you'll likely face increasing efforts to collect the debt via phone calls, letters, or even social media contact. Not paying a debt in collections will also hurt your credit score. If you don't pay, the collection agency can sue you to try to collect the debt.
If the debt is not collected, then the debt collector does not make money. In many cases, although you would think that debt collectors would eventually give up, they are known to be relentless. Debt collectors will push you until they get paid, and use sneaky tactics as well.
Ignoring or avoiding the debt collector may cause the debt collector to use other methods to try to collect the debt, including a lawsuit against you. If you are unable to come to an agreement with a debt collector, you may want to contact an attorney who can provide you with legal advice about your situation.
Ignoring debt collection calls may make things easier for a while, but it won't make the problem disappear. Your debt situation could snowball and potentially turn into a bigger issue down the road.
"Collection agency" is another term used to describe third-party debt collectors. These agencies are companies that specialize in recovering unpaid debt in collections.
A debt trap means the inability to repay credit amount. It is a situation where the debtor could not be able to repay the credit amount.
In debt usually refers to money: The company was deeply in debt [=the company owed lots of money]. However, if you are in someone's debt then you are grateful to them: I'll be forever in your debt if you can give my mother a ride home.
Six Year Limitation Period
For most debts, a creditor must begin court action to recover the debt within six years of the date you: Last made a payment. Admitted in writing that you owe the money.
Under Australian law, a debt collector must not: use physical force. use coercion. unduly harass or hassle the debtor.
There are laws about what someone can and can't do to recover a debt. They can't: send you to prison. take and sell any property without a court order (unless they have a mortgage or other form of security over the property)
A credit reporting company generally can report most negative information for seven years. Information about a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcies can stay on your report for up to ten years.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt.
Although the average settlement amounts to 48% of what you originally owed, that number is a bit skewed. If your debts are still with the original creditor, settlement amounts tend to be much higher. You can end up paying up to 80% of what you owe if the debt is still with the original creditor.
It's possible in some cases to negotiate with a lender to repay a debt after it's already been sent to collections. Working with the original creditor, rather than dealing with debt collectors, can be beneficial.
Take a deep breath and understand that accounts in collection won't plague your credit reports forever. They'll generally fall off your reports after seven years, and you may even have options for getting them removed before then.