Author Topic: Cease and Desist request in Collection log  (Read 5204 times)

stansfld

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Cease and Desist request in Collection log
« on: March 31, 2015, 07:54:38 PM »
I have 2 notes which recently went to Late (16-30 days) status. When I look at the collection log, the last note from 10 days ago was "Borrower requested that Lending Club cease and desist all communications". What does this really mean? Does LC really stop pursuing the repayment just because the borrow requests they stop communications?

bobeubanks

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Re: Cease and Desist request in Collection log
« Reply #1 on: March 31, 2015, 08:18:11 PM »
A debtor can ask (and the debt collector must honor) that the debt collector stop calling.

https://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices_Act
« Last Edit: March 31, 2015, 08:25:17 PM by bobeubanks »

Fred93

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Re: Cease and Desist request in Collection log
« Reply #2 on: March 31, 2015, 08:45:51 PM »
... "Borrower requested that Lending Club cease and desist all communications". What does this really mean? Does LC really stop pursuing the repayment just because the borrow requests they stop communications?

Yep.  There's a federal law which says exactly that.  If you quote the words from the federal law, a collector must stop contacting you.  Astonishing but true.

There are several possibilities.  One, the borrower could be a deadbeat who knows the law and uses it against lenders.  Hard to believe but there are expert deadbeats around who know the details of such laws and use them effectively.  Two, this could be a case of identity theft, and the person being contacted may be a victim. 

kbenson99

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Re: Cease and Desist request in Collection log
« Reply #3 on: March 31, 2015, 09:47:06 PM »
LC doesn't necessarily stop pursuing repayment. It is likely that they sell the debt to a third party debt collector (if the borrower ceases all payments).

I'm assuming that this is the scofflaw https://www.lendingclub.com/account/loanPerf.action?loan_id=10153146&order_id=15441795&note_id=37745401

http://www.nolo.com/legal-encyclopedia/should-i-tell-debt-collector-stop-contacting-me.html


kya

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Re: Cease and Desist request in Collection log
« Reply #5 on: March 31, 2015, 10:44:23 PM »
hopefully they sue the crap out of them and get a judgement and slap it on their house and/or garnish their wages if the jobs still exsist

LoanShark

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Re: Cease and Desist request in Collection log
« Reply #6 on: April 02, 2015, 09:44:09 PM »
Original creditors and companies that primarily service performing loans are not required to honor a cease and desist order and aren't otherwise governed by the Fair Debt Collection Practices Act.  However, most creditors do (and should) honor a cease and desist request.

A cease and desist is a very big red flag.  The debtor KNOWS they cannot pay the bill.  In contrast, many late payers simply forgot to pay the bill.  Others are going to pay it next month when their check comes in and tell the collector when to expect payment (i.e. lending club contacted borrower and borrower promised to pay)

This is someone who was clearly advised they were late and asked to be left alone.

At this point, the best thing Lendingclub can do would be to wait a few months (for a bankruptcy,) then sue.  Which they definitely will, since they ALWAYS  sue people that walk away on $35,000 signature loans.  Unfourtunately, LC's one attorney on staff, Bob, is taking a nap right now.  He will be available to file lawsuits on April 45th.

I would advise that you sell the notes.  You have a piece of information (from the collection logs) that folio buyers aren't likely to see, since they usually buy based on numeric data only.
« Last Edit: April 02, 2015, 09:49:23 PM by LoanShark »