Responding To Initial Letters From Debt Collection Companies Prior To Bankruptcy

I found an interesting post on attorney Jonathan Stein’s "California Debt Collection Blog." (http://www.californiadebtblog.com/). Mr. Stein’s post responded to questions from clients about demand letters from his client’s creditors. People had asked Mr. Stein how they should respond to the first letter they receive from any debt collection. My bankruptcy clients frequently asked me what to do with debt collection letters between the time they retain me and the time we file their bankruptcy petition. I do not practice consumer law and have no experience representing people against debt collectors. I do not respond to my client’s creditors other than preparing bankruptcy petition. Mr. Stein suggests that debtors respond to initial debt collection letters by sending the creditor a letter which serves to suspend for a significant time further debt collection activity pursuant to the Fair Debt Collection Practices Act.

A copy of Mr. Stein’s proposed letter is immediately below: .

Debt Collector
12345 Difficult Street
Very Difficult, CA 90015

Re: Account Number

Dear Debt Collector:

I am in receipt of your letter of July 1, 2009. Please note that I dispute the above-referenced debt. Therefore, please verify this debt as required by the Fair Debt Collection Practices Act and the Rosenthal Act.

While this debt is being disputed, you cannot report this debt to the credit reporting agencies. If you have already reported it the credit reporting agencies, please contact the credit reporting agencies, inform them that the debt is disputed, and ask them to delete it from my credit report.

As you know, reporting information that you know to be inaccurate, or failing to report information correctly, is a violation of the Fair Credit Reporting Act and other applicable laws.

Sincerely,

Joe Consumer

I have no independent opinion about Mr. Stein’s proposed letter because I do not practice consumer law. I have reproduced the letter and provided a link to the blog because I think both are helpful to people trying to fend off creditor collections as they prepare to file bankruptcy.

posted by Jonathan Alper, bankruptcy and asset protection attorney, Orlando, Florida

Comments

[Debt Managing]

Many collection letters sent to Alabama consumers by debt collectors, collection agencies, and debt buyers are illegal as they violate the Fair Debt Collection Practices Act. They may have false information, false threats to sue, false statements about credit reports, they may be confusing or contradictory.
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