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How do stop collection agency from calling me or sending me letters? They also reported me to credit bureau.

Vernon Rockville, CT |

I had a restaurant which i closed down as it was not running well. I lost most of my savings in it. I was not making break-even. I had to close it down after a year and a half. I notified my merchant for credit card services and tele check a month before i closed down the business that my restaurant went out of business and i returned all their equipment. Then few weeks later i received a letter stating that i need to return the equipment (which i already did because i have the certified mail received). After i got the letter, i wrote another certified letter giving them the date and time the equipment was delivered to them. They still kept on denying that and had been incurring late fees and monthly fees. Now they sent the file to collection agency. Please tell me what to do?

Attorney Answers 3

Posted

Send the collection company a cease and desist letter and a demand for verification of the debt. Upon receipt of the letter they will have to stop calling you or they will be violating federal law.

William Fife is an Attorney with Fife & Cesta, a compassionate firm conveniently located off the US 60 in Mesa, Arizona. The answers given here are based on the information in the question; for a complete answer you should have a consultation with an attorney you trust. Call now for a free bankruptcy consultation. We carefully evaluate your situation and give you real advice.

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3 comments

Asker

Posted

Thank you Mr. William Fife for a quick reply. When it comes to business owners, like me, i know the credit card machine company makes us sign the 5 yr contract, but since my business in not in operation and i have no other source of income, can they still come after me? Even if i notified them a month in advance that i am closing my business due to financial hardship?

Asker

Posted

Thank you Mr. William Fife for a quick reply. When it comes to business owners, like me, i know the credit card machine company makes us sign the 5 yr contract, but since my business in not in operation and i have no other source of income, can they still come after me? Even if i notified them a month in advance that i am closing my business due to financial hardship?

William W. Fife III

William W. Fife III

Posted

They can certainly pursue you, the ability to collect will depend on your assets and state laws were you reside. You should consider speaking to a bankruptcy attorney in your area to review all your options.

Posted

I am a Connecticut and New York licensed attorney. My practice is based out of Stratford. Because these debts are business related and not of a personal nature, the Fair Debt Collection Practices Act may not apply. However it may still worth be asserting this as they are filing on your credit report. The filing on the credit report does trigger a possible violation of the Fair Credit Reporting Act if the debt is a wrongful reporting. You need to consult with an experienced consumer attorney. My best guess is that a demand/ cease and desist letter from a lawyers office may resolve your issues. I believe the Consumer Law Practice is close to your area. You may wish to contact Attorney Daniel Blinn.

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Posted

Beyond the prior answers, I suggest sending a photocopy of your certified mail receipt along with the demand for them to cease. It is also important to note whether you signed for this contract personally as against signing as a corporate identity? This may well affect your ability to sue for their debt collection practices.

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Asker

Posted

Thank you for you reply. Here's what I've signed under Personal Guaranty section: In exchange for First Data Merchant Corporation (dba Sovereign Merchant Bank), Sovereign Bank, and American Express' acceptance of, as applicable, the Agreement and/or the Equipment Lease Agreement and/or American Express Card Acceptance Agreement, the undersigned unconditionally guarantees performance of the Client's obligations under the foregoing Agreements, and payment of all sums due thereunder, and in the event of default, hereby waives notice of default and agrees to indemnify the other parties for any and all amounts due from Client under any of the foregoing agreements. i understand that this is a Guaranty of payment and not of collection and that Sovereign Bank, First Data Merchant Services Corporation (dba Sovereign Merchant Services and American Express, are relying upon this Guaranty in entering into, as applicable, the Agreement, the Equipment Lease Agreement and American Express Card Acceptance Agreement. this was the only section that i signed under personal guarantee which i guess could not be used for collection, even after i have returned the equipment. therefore if i send them cease and desist letter, this personal guaranty section would suffice my argument?

Philip M. Block

Philip M. Block

Posted

As I wrote before, the question is whether your personal guarantee, extends beyond the amount of the original debt. I suggest you contact Attorney Daniel Blinn or some one else as recommended. As the question remains as to how far your personal guarantee extends?