Debt Collection Settlement Letter

Use the letter below trying to settle collection debt. If accepted by Collection Agency (CA), it needs to be signed and dated on the bottom by CA representative. You can put your name and social security# on the very bottom, but Do Not sign until CA signs.

Date

From:
Your Name
Your Street Address
Your City, State Zip
Your Social Security Number

To:
XYZ Collections
123 Anywhere Street
Any Town, State Zip
Reference: Account #XXX-YYY-ZZZ

Dear Collection Manager:

I have learned that you claim that I owe a debt to your collection agency. I must note that I have not yet verified this debt as legitimate and, as you are undoubtedly aware, I have a full right to do so under Fair Debt Collection Practices Act. However, I will try to save us both time and effort and settle this alleged debt out.

Below is my offer. It is not a renewed promise to pay nor does it constitute any agreement unless you sign and return it. Again, I have not agreed that this debt is mine and have an option and a right to request further proof from your agency regarding this debt. I also know that your agency regularly purchases debts from creditors.

Needless to say, you have the right to report this debt to the credit reporting agencies as you see fit and you can change this record status any time as the debt source reporting. You have also the right not to report it at all.

I am sure you are aware of my right to dispute this debt and request a full proof. I will not pay this unverified debt or any portion of it to you, unless we can agree that you will report this debt as mentioned below.

I know that having “PAID COLLECTION” status on the credit report would be very detrimental to me. Please do not tell me that you are unable to change the status or I will simply stop communicating and request full verification of this debt.

My goal is to come to mutually acceptable terms since this debt is questionable to say the least.

I will pay your company the amount of $XX as PAYMENT IN FULL for the full satisfaction of this debt. Upon receipt of the above payment, your company agrees to change the status to the "PAID AS AGREED" with all credit reporting agencies. You further agree to remove all previous notations of any delinquency related to this account.

If you agree to these terms please acknowledge this with your signature and return it to me. You agree that the terms herein are confidential and you have the authority to make such decisions. No payment will be made without written confirmation.

Upon receipt of this signed acknowledgment, I will immediately send you funds priority mail. This is not a renewed promise to pay but rather a restricted offer only. If all the terms can not be met, no new arrangements will be made and the offer will be void.

Collection Agency Name:____________________

CA officer signature:____________________

CA officer signature date:_________________

Sincerely,

Your Name

Do Not sign your name

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