Debt Settlement Agreement for Credit Restoration.
The following
is an example of a letter sent to a collection agency confirming an offer to settle a specific debt. The letter includes a
settlement amount. The letter must be signed by all parties involved and is considered a binding contract.
Sample Letter: Debt Settlement Offer by Lump Sum Payment
Collection Agency Name
Address
City, State, Zip
Re: Debt Settlement Agreement Offer
I have an existing alleged debt with [insert Creditor name here] which you are now collecting and
detailed as follows:
| Creditor: | Credit
Card Company |
| Account #: | 90990999JC |
| Account Name: | Thomas D. Sample [This
is a sample name only.] |
| Account Type: | Revolving |
| Balance: | $3,750.00 |
I have defaulted on my payments for this alleged debt due to [job loss/
underemployment/ illness/ mortgage foreclosure/ accident/ or place any other valid reason here]. It's really beyond my control.
Since I currently have a good change in fortune
and even though I still have questions left unanswered on its accuracy and the validity of this alleged debt remains unproven,
I offer the settlement of this alleged debt under the following four (4) major terms and conditions:
- Because I've just received [my IRS tax refund/ an inheritance from my dad/ my sales commission/
payment from the sale of my baseball card collection], I would like to settle my alleged debt in full for $2,500.
- If
you agree to settle on the said amount which is $1,250 lower than my alleged outstanding balance, then you will hold me free
and clear from my alleged debt. You will, or cause to, show a "paid in full", "fully paid" or any equivalent term on all of
my credit reports upon your receipt of my lump sum payment. You will likewise notify me when my credit reports already reflect
said information.
- You will promptly withdraw or quickly cause to dismiss any lawsuit relating to my alleged debt as
detailed above. Moreover, you will ensure that no future lawsuits relating to said alleged debt will be filed against me.
- You
will, or cause to, remove any or all negative items on all of my credit reports that pertain to said alleged debt.
I am currently negotiating to settle several alleged debts with three other collection agencies
and/or creditors. When you have decided to be the first collection agency or creditor to agree to my proposed terms and conditions,
then I will immediately withdraw my debt settlement agreement proposals with the other three collection agencies and/or creditors.
In case you don't agree, I'll get back to you and offer another debt settlement agreement proposal
once good fortune knocks on my door again in the future.
But
if you agree, I'll immediately send you the $2,500 via [cashier's check/ money order/ cash/ electronic bank transfer] when
I receive the signed and unmodified copy of the herein attached Debt Settlement Agreement from your manager in charge of debt
collections. In case another collection agency or creditor has submitted a signed Debt Settlement Agreement first, I'll inform
you in writing via [certified/registered] mail.
[Sign
here above printed name.]
Thomas D. Sample
Address
City, State, Zip
Phone Number (Home)
Enclosures or Attachments:
Photocopy
of Driver's license
Debt Settlement Agreement (two copies)
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Fight Debt Collector Harassment- Collection Agency Dispute Letter.
This
is a sample of a letter to a collection agency requesting that they validate the debt they are attempting to collect on.
Debt Collector Dispute Letter When the Debt is Not Yours
Re: Collection of debt that is not mine
Dear
Ladies and Gentlemen of [insert name of collection agency here]:
I
have received a [written notice/ phone call] from your company on [insert date here] regarding a debt that is not mine.
Please see the attached
photocopy of the crime report that I have filed with the [insert name of police department here].
If you still think this debt is mine, then may I request for a written validation
or verification of this alleged debt in the manner prescribed in Chaudhry vs. Gallerizo 174 F.3d394 (4th Cir. 1999).
I have sent this letter
via [certified/ registered] mail and would greatly appreciate it if you stopped all phone calls immediately. I have likewise
verified my situation with the Consumer Financial Protection Bureau and was informed I might be able to sue you for damages
and attorney's fees.
Enclosure or Attachment:
Photocopy
of Police Crime Report
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Dispute Letter for Debt Collectors When the Amount is
Wrong
Name
Address
Date
Re: Collection of incorrect amount
Dear Ladies and Gentlemen of [insert name of collection agency here]:
I have received a [written notice/ phone call] from your company on [insert
date here] regarding an alleged debt which I believe is inaccurate.
May I respectfully request validation or verification of this debt in the
manner prescribed in Chaudhry vs. Gallerizo 174 F.3d394 (4th Cir. 1999) because it appears that you've got several information
wrong.
In the meantime, would you be so kind to please stop
all phone calls immediately? If you have to notify me of anything, I would be happier if you did it in writing.
By the way, I have sent
this letter via [certified/ registered] mail. I have likewise verified my situation with the Consumer Financial Protection
Bureau on what I can do regarding this matter.
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Shortest Sample Debt Validation Letter to a Collection Agency.
Here is
a short letter to be sent to a collection agency requesting validation of debt.
Collection
Agency
Address
Date
Re: Request for Debt Validation
Dear [insert collection agency company here]:
Through this certified mail, I would like to request for a written validation
or verification of the alleged debt described below in the manner prescribed in Chaudhry vs. Gallerizo 174 F.3d394 (4th Cir.
1999).
Account #: 90990999JC
Account Name: Thomas D. Sample
Account
Type: Revolving
I
have good reason to believe that this alleged debt is fraudulent and have promptly filed a police crime report upon seeing
my latest credit reports.
[Insert signature here]
Thomas D. Sample
Address
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Stop Unfair Debt Collection Practices: Short, Professional Letter
Stop
Unfair Debt Collection Practices: Short, Professional Letter. Here is a letter requesting that the collection agency cease
and desist contact with you.
First Notice Against Abusive Collection
Practices on Your Debt
Collection Agency
Address
Date
Re: Lawful conduct in collection
efforts
Dear
[insert collection agency company here]:
I have been receiving successive and multiple phone calls from your office lately. Your repeated
phone calls, abusive conduct, and unnecessary calls to third parties are causing a lot of stress and embarrassment.
It is very inconvenient for me to answer your phone calls
before 9:00 a.m. and after 9:00 p.m. I have to commute from 8:00 a.m. to 9:00 a.m. to get to work.
My employer too prohibits any phone calls that are not related to his/her business during work hours
from 9:00 a.m.to 5:00 p.m.
Moreover, it is
inconvenient for me to answer your phone calls on Sundays since I have a full schedule on those days.
Most importantly, I do not consent to third party contact.
Please
observe proper lawful conduct in your collection efforts. I have sent this letter via certified mail for my record.
[Insert signature here]
Thomas D. Sample
Address
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Second Notice Against Unfair Debt Collection
Practices
Collection Agency
Address
Date
Re: Harassment or abuse
per Section 806 FDCPA
Dear
[insert collection agency company here]:
Enclosed is a photocopy of my letter complaint regarding your unlawful debt collection practices
through harassing and/or abusive phone calls.
It’s unfortunate that you continued
with such practices despite my lawful request several weeks ago. In this regard, may I inform you to cease any further communication
with me except for the three statutory exceptions as provided for in Section 805(c) of the FDCPA.
I have recorded several of your phone calls for my file and likewise filed a complaint with the
FTC’s NDNC Registry.
[Insert signature here]
Thomas D. Sample
Address
Enclosures
or Attachments:
First Notice against abusive collection practices dated: [insert
date of letter here]
USPS certified mail proof of receipt photocopy
National
Do Not Call Registry filled up complaint form photocopy
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Credit Repair Dispute Letter: Make $1000 from Creditor Violations.
The
following is a sample letter that can be sent when the statute of limitations on a collectible debt has passed. This correspondence
also requests that the collection agency, cease and desist contact with you and investigates the matter under the FCRA.
1st Letter: Misrepresentation of Debt Character, Amount or Status
Collection Agency
Address
Date
Re: Misrepresentation of Debt Character, Amount
or Status
Dear [insert collection agency company here]:
Among
the top consumer complaints filed with the Federal Trade Commission since 2009, misrepresentation of debt character, amount
or status as a category is No. 2. Companies like Asset Acceptance, LLC have already agreed to settle complaints with the FTC
in the amount of millions of dollars.
I dispute the debt that I have highlighted in the enclosed photocopy of my credit report and demand verification/validation
of this debt in the manner prescribed in Chaudhry vs. Gallerizo 174 F.3d394 (4th Cir. 1999).
Specifically, I contend that [choose any or all that applies to your situation, delete what is not applicable]:
- You are misrepresenting that I owe you this debt and yet you could not substantiate
its representation.
- You have failed to disclose that this debt is too old to be legally
enforceable and that should I make a partial payment, this would extend the time that a debt could be legally enforceable.
- You have provided information to credit reporting agencies, while knowing or having reasonable cause to believe
that the information you have provided was inaccurate.
I
have likewise enclosed the following proof that [choose any or all that applies to your situation, delete what is not applicable]:
- This debt is not mine. Please see the attached photocopy of the crime report
that I have filed with the [insert police department here].
- This debt is beyond the statute
of limitations. Please see the attached photocopy of the notice of delinquency from the original creditor dated [insert date
of original creditor’s letter].
- The amount of this debt is bigger than the actual
debt. Please the attached photocopy of the [insert name of proof here].
Moreover, please immediately stop all of the following illegal debt collection practices [choose any or all
that applies to your situation, delete what is not applicable]:
- Repeated
phone calls.
- Threats relating to illegal or unintended acts.
- Repeated
phone calls to third parties such as but not limited to my friends, neighbors, employer, and office mates among others.
- Threats relating to arrest or seizure of property.
- Use of obscene, profane,
or abusive Language.
- Phone calls to my workplace. These calls threaten my continued employment.
- Revealing debt to any third party.
- Phone calls during inconvenient times.
- Collection of unauthorized fees, interest or expenses.
- Phone calls after
your receipt of this letter.
- Use or threats of violence.
I look forward to your cooperation.
[Insert signature here]
Thomas D. Sample
Address
Enclosures or Attachments:
Experian Credit Report with highlighted debt
TransUnion
Credit Report with highlighted debt
Equifax Credit Report
with highlighted debt
Photocopy of Police Crime Report
Photocopy of [evidence 2]
Photocopy of [evidence 3]
Photocopy of [evidence
4]
Photocopy of [evidence …]
2nd Letter: Misrepresentation
of Debt Character, Amount or Status
Collection
Agency
Address
Date
Re:
Your continued violations of the FDCPA and FCRA
Dear [insert collection agency company here]:
Attached is a photocopy of my dispute letter to you dated [insert date here].
Since you refuse to abide by the provisions of the FDCPA and FCRA, I have filed a formal complaint with the
Federal Trade Commission against your company. Please stop all of your unlawful collection activities immediately.
[Insert
signature here]
Thomas D. Sample
Address
Enclosures or Attachments:
Photocopy of letter disputing misrepresentation
of debt character, amount or status
Photocopy of Federal
Trade Commission complaint
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Sample Debt Validation Letter: Stop Collection Agency Phone Calls.
This
is an example of a letter sent to a collection agency to validate debt.
Collection
Agency
Address
Date
RE: Request for validation of alleged debt and proper conduct in phone
calls and collection efforts
Dear [insert collection
agency company here]:
May I request validation of this alleged
debt and kindly refrain from all unlawful conduct in your phone calls which are listed as follows [choose any or all that
applies to your situation, delete what is not applicable]:
- Repeated phone calls.
- Repeated
phone calls to third parties such as but not limited to my friends, neighbors, employer, and office mates among others.
- Phone
calls to my workplace. These calls threaten my continued employment.
- Threats relating to illegal or unintended acts.
- Threats
relating to arrest or seizure of property.
- Use of obscene, profane, or abusive Language.
- Revealing debt to
any third party.
- Use or threats of violence.
- Phone calls during inconvenient times. It is very inconvenient
for me to answer your phone calls before 9:00 a.m. and after 9:00 p.m. I have to commute from 8:00 a.m. to 9:00 a.m. to get
to work. Moreover, it is inconvenient for me to answer your phone calls on Sundays since I have a full schedule on those days.
- Phone
calls after your receipt of this letter.
As I understand it, 15 U.S.C. § 1692g(a) allows for 30 days to
dispute the validity of this debt that you are collecting on behalf of [insert creditor name here]. Please be advised that
I have received your written notice this [insert date when you have received the snail mail] via [ordinary mail | certified
mail | registered mail].
Do
I correctly understand that it is your duty as a debt collector under the FDCPA to stop all collection efforts such as scheduling
a hearing date within this thirty-day debt validation period to ensure that you will not undercut my verification rights until
you have validated this debt?
I am only requesting
for the minimum information required for the verification/validation of this debt per Chaudhry vs. Gallerizo 174 F.3d394 (4th
Cir. 1999) but would greatly appreciate it if you provided more details on the amount of the debt.
Per
my records, [choose one or all and delete what is not applicable]
- the amount being collected
is more than the actual debt
- some items in this alleged debt are not mine
- this is an old debt which is legally
unenforceable
- this entire alleged debt is not mine
I will bring these
records with me in the proper court of law in case of any lawsuit that you might decide to file in the future.
[Insert
signature here]
Thomas D. Sample
Address
Enclosures or Attachments:
Notice
of alleged debt from your office
Photocopy of the date when notice has been received
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Dispute Item on Credit Report: Next Stronger Letter.
This is a letter sent
to a collection agency notifying them that you are planning to file suit against them. This is sent when you haven't gotten
a response to a previous request for debt validation.
Date
Your Name, Address, City, State, Zip
Collection Agency, Address,
City, State, Zip
RE: Account #xxxx-xxxx-xxxx
Your company has failed
to send the legally required validation of this debt.
You
have been notified that your actions are detrimental to me and that your company has violated (including but not limited to)
the Consumer Credit Protection Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act. Your company
knew or should have known that the actions taken against me and the information collected about me was inaccurate and damaging
to me. Your company has failed to use reasonable care in the course of business. Your company has communicated and is continuing
to communicate incorrect and defamatory information to third parties including but not limited to: Equifax, Experian, and
Trans Union. As a result of these reckless and intentional acts, I have suffered and continue to suffer general and specific
damages.
I am now demanding the immediate
and complete removal of this trade line from my credit reports (Equifax, Experian, and Trans Union).
As I am currently attempting to apply for credit, time is of the essence. Please understand that
I am extremely concerned about the consequences of the actions your company is having on my life. Please be advised that,
if this matter is not resolved by (date), I will take any and all necessary steps to protect my rights.
Thank you in advance for your attention to this matter.
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