If you have fallen behind with your credit cards or unsecured debts, you are probably receiving calls from the credit card companies or collection companies, attempting to collect on the debt they are owed.  One of the most unpleasant aspects of falling behind on your debts is having to deal with the collector phone calls.  You can understand that they have a job to do, but their tactics and phone demeanor can sometimes cause consumers to feel very upset and anxious.  If you are unable to pay due to financial hardship, you may find yourself looking for ways to avoid talking to these collectors – but is it a good idea?

One of the methods for dealing with creditors is Cease and Desist letters.  Under the Fair Debt Collection Practices Act (FDCPA), a consumer has the right to request in writing, that a third party collection agency “cease and desist” from further contact regarding a debt.   This particular regulation applies to collection companies who collect debt on behalf of others, not the original creditor.  Although original creditors are not bound to the FDCPA, many of them do, as a matter of corporate policy, adhere to the guidelines.

Many consumers are unaware of the possible unintended consequences of sending a Cease and Desist letter.  Since many creditors will respect the written request, the result of their inability to communicate either verbally or in writing with the consumer could result in the creditor initiating a lawsuit, seeing litigation as the only recourse they have to get the consumer’s attention.

Even if the creditor does not immediately institute a lawsuit, they may decide to just let the account charge off.   Even though the letters and phone calls stop, the impact to the consumer’s credit is much worse than if they had contacted the creditor and worked out a repayment plan or debt settlement.

The creditor may also choose to sell the uncollectible debt to a third party collection company.  Additional interest and fees will continue to accrue on the account, while the collection calls begin again, since the third party collection company is not bound by the original Cease and Desist letter.  The third party collector could potentially forward the account to attorneys to begin litigation.  This is likely to happen without the consumer’s knowledge.  So an original desire to stop presumed harassment by the collection company could result in the consumer ending up in court and a possible judgment.

In summary, working out some type of arrangement or settlement with the creditor rather than avoiding their calls is usually best, and a good way to avoid further unpleasant consequences.

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