Sample Debt Settlement, Consolidation, & Negotiation Letters

Creditor Dispute Letters

Close Credit Card Accounts Letter
If you have many credit card accounts with zero balances and no transaction activities ("inactive account"), this could actually negatively impact your credit score. You can use this sample letter to inform the credit card company to close your inactive credit accounts as well as tell them to inform the Credit Reporting Bureaus (TransUnion, Experian and Equifax) that your account is closed at customer's will.

Video: What are Junk Debt Buyers?

Credit Purchase Complaint Letter
Use this letter to complain against any purchases or leases of products made on your credit card for which you are not happy/satisfied. Sending a written complaint letter against faulty products/services sends a strong message to the company and will definitely get you a good response.

Credit Complaints Resolution Letter
When you have a complaint with a credit card company that you want resolved, use this letter to confirm your actions and the steps that the credit card company needs to take, in order to get it resolved. We suggest making the complaint over the phone, and then sending them this letter to confirm your conversation on the phone.

Amend Debt Payment Agreement Letter
Your current financial situation does not allow you to make full payments you owe to your creditors. Unfortunate events such as loss of spouse, loss of job, disability, or divorce force you to not be able to keep up with your monthly payments. In this scenario, it is best to contact your creditors right away and inform them of your situation. Thus, use this letter to request for a reduction in monthly payments due to financial hardship.

Reduced Payment Agreement to Creditors Letter
If you have already spoken to your creditors over the phone and if they have agreed to you making lower payments every month, use this letter to follow up your phone conversation and put it into writing.

Credit Card Dispute Letter
You can use this credit card dispute letter to dispute any purchases listed on your credit card statement that you did not make. Also, any errors that appear on your statement can also be disputed using this letter. In your letter, be sure to describe exactly what the error is, any description, amounts, names & numbers of people involved. You should also attach a copy of any receipts, credit contract or a bill of sale, etc.

Debt Dispute Letters

Initial Debt Verification Letter
When debt collectors call you and ask you to pay a certain bill, you can always dispute the validity of that bill by sending them a Debt Verification letter. In this debt verification letter, you are NOT saying you will not make the payment, you are merely asking them to validate that that debt really belongs to you.

Stop 3rd Party Debt Collection Calls
Debt Collections will often call 3rd parties when trying to locate a debtor. They are allowed to do this legally only if they do NOT already have the debtor's location and whereabouts information (physical address & phone number). Debt collectors who know the debtor's physical address & phone number but still decide to make 3rd party collection calls are violating the Section 804(3) law of the Fair Debt Collection Practices Act (FDCPA).

Dispute Debt after Receiving the Debt Validation Forms - Invalid Debt
"If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector."

Statute of Limitations Letter to Dispute Debt Owed to Harassing Lender
This letter is written to your creditor to inform him that the Statute of Limitations (SOL) period is over and you are disputing your debts owed. You should also note to them that you will use this defense for yourself incase they take you to court.

Stop Calling Me Letter Written to Harassing Debt Companies
I am responding to your constant harassing phone calls to my home and my workplace. I find your phone calls very stressful and therefore demand that you stop calling me as of NOW!

Initial Debt Dispute Letter
If debt lenders are constantly harassing you for any debts owed that you cannot remember or have not borrowed, then according to the Fair Debt Collection Practices Act (FDCPA), you have a right to dispute those debts. If you send out a written version of this letter to your debtor, the debtor is legally obligated to stop harassing and calling you, until they verify the debt is valid and have evidence/proof.

Follow Up Debt Dispute Letter
If the debt collector hasn't responded to your initial debt dispute letter after 30 days, it is a good idea to follow up and request for a debt validation document. Use this letter to follow up on the progress.
Note: Use this letter ONLY after you have sent an initial dispute letter.

Debt Payment Negotiation Letter
When you cannot 100% meet the payment demands of your creditors, use this letter to try to negotiate a lower monthly payment.

Settle My Debts Letter
When you want to reach a debt settlement agreement with your creditors, you want to pay less than you owe. A debt settlement is a compromise between you and your creditors that you will pay a certain amount of money every month, below the original amount owed. Creditors would prefer receiving a little less money from you, rather than receiving $0 payment and having to sue you in court (which would cost them thousands of dollars). You can use this fact to your advantage! Use this debt settlement letter as a reference to send to your creditors if you owe any debts.

Video: How to Write a Credit Dispute Letter

Terminating Your Debts or Official Refusal to Pay Letter
Sometimes after settling your debts with your creditors at a certain lower monthly payment, they will demand higher payments or even the entire balance! Use the following debt termination letter to let a creditor know that you cannot afford to pay the higher balance that they are asking you to pay, but are however committed to make regular on-time monthly payments at a lower rate. This letter also informs the creditor that if they cannot accept your offer of a lower on-time monthly payment, you will have to terminate your relationship with them and halt all further payments.

Final Debt Payment Letter: Letter to Alert Creditors that You have Sent Payment
If you intend to fully settle a particular debt, writing a check and and marking "Paid in Full" on your checkbook or record book may not be enough to fully relieve you off debt. This is because some debt collectors will refuse to set your account to Zero or forget to do it. In order to avoid this risk, you should use the below sampled debt settlement letter to inform the debt collector that you intend to send payment within 30 days and settle your account to $0.

Post Debt Settlement Letter
You might have settled a particular debt with your Creditor but still receive debt collection calls! Given the fact that hundreds of thousands of uncollectible debt is sold to Junk Debt Buyers (JDB), you might receive one or two or more collection calls from different debt collectors, even though you have settled the debt with the original creditor! If this happens to you, use this sample letter to inform the collectors that the debt has previously been settled and warn them to stop calling you.

Judgement Proof Letter
Sometimes even after explaining to your creditors that you have lost your source of income (your job) and have no personal assets, they will still keep harassing and calling you to recover their debts. Some creditors will ask you to borrow money from your friends/family in order to pay them down, others will ask you to take out more credit card debt (which will involve paying interest payments and juggle you down into more debt). If you are in such a situation, use this Judgement Proof letter to inform the creditor that you have no assets and no source of income, and with the Fair Debt Collection Practices Act, the creditor must stop harassing you.