Debt Settlement Sample Letter for Debt Settlement Agreement | Sample Letter for Debt Settlement Agreement |
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Also called an Agreement to Compromise Debt or Debt Settlement Agreement Letter
This is a sample letter to send to a creditor, like a credit card company or a collection agency, to request a reduction in the amount you owe them. It can also be used to confirm in writing your verbal agreement to settle your debt for less than full balance. Be sure to send 2 copies by Certified Mail so that you have proof that they received it, and you must indicate that they need to send one of the signed originals back to you. Agreement to Compromise Debt [CREDITOR OR COLLECTION AGENCY NAME] and [ACCOUNT HOLDER NAME] hereby agree to compromise the indebtedness between them based on the following terms and conditions: [CREDITOR OR COLLECTION AGENCY NAME] and [ACCOUNT HOLDER NAME] agree that alleged debt is $_____________.00 (_____________ & 00/100 dollars). The parties agree that [CREDITOR OR COLLECTION AGENCY NAME] shall accept the sum of $_________.00 (___________ & no/100 dollars) as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due, and the [CREDITOR OR COLLECTION AGENCY NAME] agrees to consider the debt paid in full and agrees to not take further action to collect on the alleged debt. The payment shall be made in the form of a cashier’s check or money order. This compromise is expressly conditioned upon the payment being received by [DATE]. If [ACCOUNT HOLDER NAME] fails to pay the compromised amount by [DATE], this contract will be immediately terminated and the original amount owed by [ACCOUNT HOLDER NAME] will stand to be immediately due. Upon payment of the $_______.00, [CREDITOR OR COLLECTION AGENCY NAME] agrees to remove any listing or information that [CREDITOR OR COLLECTION AGENCY NAME] may have placed on [ACCOUNT HOLDER NAME]’s credit report. [CREDITOR OR COLLECTION AGENCY NAME] agrees to never at any time in the future place any information on the [ACCOUNT HOLDER NAME]‘S credit report. This Agreement shall be binding upon and inure to the benefit of the parties, their successors, and assignees. Dated: [TODAY'S DATE] Signature: _________________ Legal Representitive of [CREDITOR OR COLLECTION AGENCY NAME] Signature: ____________ [ACCOUNT HOLDER NAME] |
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