What exactly is cease and desist (sp)

Dave · #1 (**permalink**) 03-29-2009, 06:13 AM

A good friend of mine recently told me about a credit repair program that he signed up for out of McKinney, TX called [dodgy fee company]. He told me that when he signed up, he had pretty bad credit, and the company told him to stop paying on several of his credit cards. He said they put a cease and desist on his cards, and in just over a year, he had very good credit. (Good enough to move to Hawaii and back) I think he said the program cost about $800.00 and they told him upfront that it’s not an overnight fix. But what I can’t figure out is how they make credit cards and the payments that come along with them just disappear. Can anybody explain this? Thanks.

Dave

Watts · #2 (**permalink**) 03-31-2009, 07:51 PM

A cease and desist is usual ordered to stop fraudulent activities, such as calling yourself Disney and selling shoes from your garage. In finance, it could be because the rates are illegal by state law, the terms are illegal, or the contract is void for another reason. Don't bet on them being able to do the same for you, but it might be worth looking into further.

Dave · #3 (**permalink**) 04-07-2009, 03:49 AM

It seems kinda shady. Guess I'll just try and be honest and pay it all off.

Dave

DavidF · #4 (**permalink**) 05-15-2009, 06:01 PM

Quote:

Originally Posted by Dave

A good friend of mine recently told me about a credit repair program that he signed up for out of McKinney, TX called RMCN credit services. He told me that when he signed up, he had pretty bad credit, and the company told him to stop paying on several of his credit cards. He said they put a cease and desist on his cards, and in just over a year, he had very good credit. (Good enough to move to Hawaii and back) I think he said the program cost about $800.00 and they told him upfront that it’s not an overnight fix. But what I can’t figure out is how they make credit cards and the payments that come along with them just disappear. Can anybody explain this? Thanks.

Dave

Cease and desist is a letter sent on behalf of the client to the lender or collection company requesting that they stop contacting the client by telephone. In some cases it may also request that the lender or collection company prove that the debt exists.

MarkHamilton · #5 (**permalink**) 05-15-2009, 06:37 PM

A cease and desist is a letter that you can send to collection agencies and to get them to stop calling you. It does nothing more. Demanding proof of debt in a cease and desist letter is pointless because they no longer can legally contact you. Sending a C&D will not remove or fix any credit issues you have. If you plan on resolving issues I suggest not sending a C&D and working it out directly

Mark credit manager

brian · #6 (**permalink**) 06-03-2009, 10:41 AM

There are a number of scam companies doing this. In all instances, they demand a fee upfront. There's never any guarantee you'll see anything back for it.

Curtissmith · #7 (**permalink**) 06-22-2009, 03:45 PM

Sounds like legal theft to me. They are telling consumers to stop paying their credit cards. They then take your 800$ and send the credit card companies a C&D (cease and desist) this means they can no longer cantact you directly. However they will now be forced to file legal action against you and file suit. While it may seem like a great deal to get something for free you will end up paying for it with legal costs. Not to mention that purposely running up cards with the intent to default is not always a civil matter in some states.

Curtis Smith
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Collection agencies