What happens when a debt has been sold and you send a Cease and Desist Letter to the collection agency?
Catwoman asked:
I have made monthly payments to the original creditor whom is still accepting the payments, but my debt has been sold to a collection agency. I sent them a Cease and Desist letter indicating I am still paying the original creditor and they wrote back they are taking the pertinent actions to ensure I don’t hear from them again accompanied by a so called “Validation of Debt”. What happens now?
I have made monthly payments to the original creditor whom is still accepting the payments, but my debt has been sold to a collection agency. I sent them a Cease and Desist letter indicating I am still paying the original creditor and they wrote back they are taking the pertinent actions to ensure I don’t hear from them again accompanied by a so called “Validation of Debt”. What happens now?
December 19th, 2009 at 4:10 pm
If you had a monthly agreement with the original creditor, then they should not have sold the debt.
If the debt truly was sold, then you have to issue payment to the people who own the debt, not the original creditor. You need to call the original creditor and find out if the debt was sold or just outsourced for collection.
You can also pull your credit report, you can do this once a year for free from the three major bureaus at, and see who is currently reporting the debt on your credit report.
After you send a Cease and Desist letter, (you should do so by certified mail/return receipt), once the collector receives your letter, the FDPCA allows the collector to contact you one final time, in writing, to let you know what action, if any, the collector will take next.
FYI: A Validation of Debt is when the collection agency sends you proof that it owns or has been assigned the debt by the original creditor. Verification that you owe the debt and the amount of the debt needs to include documentation from original creditor (however, it is the debt collector who sends it to you). It is not enough for the collection agency to simply send you a printout of the amount owed.
December 22nd, 2009 at 4:35 am
Be advised that you DO need to find out what the status of the account is before paying another dime. IF the original creditor still has the debt or it is IN HOUSE collections then you pay them. IF the debt was sold to another OUTSIDE agency then the payments go to them. In addition of your payments have been made to the original creditor BUT the debt was sold you will now have to make any payments to them that were due after the sale EVEN if you have paid the cc company already.
Now a cease and desist letter merely makes the creditor/collection agency speed up collection processes including suin your in court if the amount is sufficient enough for them to bother.
December 24th, 2009 at 4:31 pm
That letter you sent simply pi$$ed em off, so they replied with a “validation”.
Now, did they follow the FDCPA guidelines on what a “validation” is? You can read what a “validation” has to include at this link:
In addition, a validation is required to prove the following:
Proof that they own the debt legally or have been legally authorized to collect it from you.
A complete payment history documented from your original creditor. This requirement was established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004.
A copy of the original loan contract that you signed with your creditor.
If the above items were not included in their validation, then it does not comply and does not constitute a proper validation. In which case you write them and ask for proper validation. Here is another link to a web site for free sample letters to use.
NOTE: This communication is not intended as or should be interpreted as legal advice. It is intended solely as a general discussion of legal principles or definitions of the FDCPA and FCRA. Always consult an attorney if needed.
November 10th, 2011 at 12:06 am
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