How to Stop Credit Card Collections

The credit card collection process can be frustrating and difficult to deal with. The Fair Debt Collection Practices Act (FDCPA) governs collectors and dictates what collectors are legally allowed to do. There are steps you can take to either halt, delay or stop the collection process depending on your circumstances. The best way to stop a collection activity is to pay the debt in full, but this is not always possible. There are still other solutions you may find useful.

Instructions

1




Check the statutes.

Determine if the debt is within your state's statute of limitations (SOL) on debt. If the SOL has passed in your state, you are not legally obligated to pay the debt. Send the creditor a cease and desist letter. A cease and desist letter says the creditor must cease contact with you. The creditor can only then contact you one more time if he is seeking legal action or dropping further collections. In this case, once the creditor is aware that you know the law and the SOL has passed, it is very unlikely to see continued collection efforts. Check your state's laws (see Resources).

2




Write a letter.

Determine if you can pay the debt in full or what amount you can pay. Send the collector a letter with a payment offer. Explain the offer is the best you can do and you realize it is not the full amount but you wish to settle this debt. Ask the collector to respond within 10 days of receipt and list the date you will pay upon acceptance of offer.

3




Send payment.

Send the payment as agreed if collector responds to your letter and agrees to a settlement. If the collector does not agree and you cannot pay her requested amount, send a cease and desist letter asking her to cease contact immediately.

4




Wait

Wait a few weeks and try to settle the collection account again. Collectors, generally, want to settle the debt and will accept offers between 30 to 70 percent of balance due.

5




Payment Plan

Offer a new repayment plan. Do not offer nor agree to any payment plan that you do not firmly believe you can maintain. You do not want to renew the debt and later fail to make the payments.

6




Contact your attorney.

Contact your attorney as a last resort to stop credit card collection activity. Once you retain an attorney, all collection activity must be directed to the attorney. This can temporarily stall all collection while you figure out your resources and plans.