A reader sent me an email they had received from a site Credit Card Debt Relief 4u. The email says:
“After your debt defaults (about 6 months from the first missed payment) with the original creditor, it is passed onto a debt collection agency for collection. If you send that agency the right letter, your debt will likely get passed onto another agency, then with another good letter, perhaps even a third debt collector.
Eventually, after as little as nine months, your debt will be sold for about 10 cents on the dollar to a junk debt buyer (JDB) in a block with thousands of other debts. Then that JDB will contact you about the debt. Then, after a good letter from you that JDB’s debt collection agency will contact you. Then, after a good letter from you that JDB’s collection attorney will contact you. Then, after another good letter from you, that JDB will sell your debt for five cents on the dollar to another JDB and the process will start over.
The bottom line is with the right letter you will be winning. You can do this, just I like I did it to escape $63,000 in credit card debt.
You can get my Credit Card Debt Survival Guide for that proper letter. If you are in deep, you can also take advantage of my technical support (scroll down the page to find it). It too comes with a 60-day money-back guarantee.
Vision Publishing Inc,
92 Common St.
Walpole, MA 02081”
What caught my eye is the broad claims made in the sales pitch. The approach seems to be that by sending a “good letter” your debt problems can vanish. The approach seems to paint a magic picture of how to write a letter and make debt collectors go away for good.
Well if your goal is to make the third-party debt collector stop calling you, you can just send a cease and desist letter. Here is information on that for free.
Debt Collector Cease and Desist Communication Form Letter
You can send the following letter cease and desist communications letter to the debt collector or debt buyer contacting you to stop communications from them. Be aware, this letter is only effective on third-party debt collectors and subsequent buyers of your debt from the original creditor and not the original creditor that extended the credit to you.
BEWARE: This is not a magic wand. If you send this letter and shut off communications it can lead to you being sued sooner since the collector still has that option following receipt of this letter.
Upon receipt of this letter the debt buyer or collector has the following options:
- to advise the consumer that the debt collector’s further efforts are being terminated;
- to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or
- where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.
A Sample Letter
City, State Zip
Debt Collector’s Name
City, State Zip
Re: Account Number
According to my rights under the Fair Debt Collection Practices Act I am formally requesting that you cease all communications with me or anyone else involved.
“If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt.”
You may consider this letter as my formal notification.
If you do not comply I will file a public complaint with the public consumer complaint database at http://getoutofdebt.org/scam-reporter/ and with state and federal agencies including the Federal Trade Commission, Consumer Financial Protection Bureau, and my Attorney General.
If you are unable to comply with this request I will find a local consumer FDCPA attorney to represent me from http://naca.net, the National Association of Consumer Advocates.
Send the letter by certified mail, return receipt requested.
The postcard you get back, like the one below, will show the name of the company you sent it to, a signature of who signed for it and when they got it.
Staple the return postcard to a copy of the letter you sent and put it in a safe place with your other important papers. You may need this later.
If you receive any further telephone calls or messages, keep a log of who called about the debt in question, when they called, and what they said. Keep all written communications they may send about this debt as well.
Is It Just That Simple to Make Debt Collectors Vanish?
Making a debt collector stop contacting you is pretty simple, but is that really what you want to do? When you do that a debt collector may contact you again, through the court, when they sue you. Or they can refer the account back to the original creditor, who might just decide to sue you as well.
Shutting the collector up is not a magic solution, it’s possibly just going to make things worse. For some creditors a cease and desist letter is an invitation to sue you.
Then the sales pitch seems to turn to what to do when a new debt buyer purchases your debt. It instructs people to send a debt validation letter. And we are certainly hearing more about requesting the debt to be validated, but what does that really mean? Not ever place seems to adhere to the same stands of what you should expect to validate a debt.
There is no hard and fast rule of what constitutes validation. But here is an article about standards from one state that might be helpful.
At some point, the information you need to be flirting on the edge of being sued is not to be obtained from any website, including this one. In that instance you need real legal advice from a real lawyer that is licensed in your state.
The reader that sent this in to me, and myself, both shared the same opinion. Making collectors stop seems like a magical and simple solution that can be obtained from a $27 ebook but it may just be a dangerous thing and sets people up for a bigger failure.
Mel Thompson on his site makes a rather unusual statement. He says, “Had I filed bankruptcy my credit would have been ruined for ten years.” – Source. It’s an interesting statement because it’s just not a factual statement.
According to an article published yesterday by Jared Strauss, his observation was that a chapter 7 bankruptcy took about two years to recover from. In fact it takes little time to rebuild your credit and get ready to buy a new car and home following bankruptcy. Just read this free guide. Bankruptcy closes the door, hiding just pushes the problem down the road, unresolved.
Mel makes the same statement that I hear from many people, “I looked into filing bankruptcy. Fortunately I realized that should be my last option, not my first.” Okay, that’s one opinion, but read Bankruptcy Should Be the Last Resort Many Say. But That’s Just Not True. Rather than launching into some letter based debt elimination trick, it’s probably a better idea to get fully informed about the reality of your situation first.
For those that may be interested in what Mel is selling, here is the entire sales pitch video. – Video Source
Feel free to watch the video and give your opinion. Is this a great deal and solution for consumers?
Of course if you have a different opinion, feel free to post it below.