Updated September 22, 2023
Debt letters are used by creditors and debtors to collect, verify, dispute, and settle debts in accordance with the Fair Debt Collection Practices Act. It is highly recommended that any communication between a creditor and debtor be exchanged via certified mail with a return receipt in order to have proof of delivery.
By Type (8)
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
How to Send a Debt Letter
Step 1 – Describe the Parties
Include the names and addresses of both the creditor and the debtor being addressed on the upper left corner of the letter. Entering the effective date is also helpful, especially for offers of settlement and other compromises.
Step 2 – Know Your Rights
The rights of the consumer and any creditor are listed in the Fair Debt Collection Practices Act ( § 1692 to § 1692p), which requires debtors to state-specific requirements when administering a debt. Under the law, the debtor has 30 days to dispute any collection.
Step 3 – Offer a Settlement
Unless the creditor feels as though the debtor is credit-worthy, most debts get discounted by up to 70% if the debtor is offering a lumpsum payment. This final payment is usually difficult for any business or collections agency to give up on as so many debts go uncollected.
Step 4 – Respond / Accept the Terms
If the letter is an offer, then reply with a counter-offer. If the letter is a claim, it is best to request its validation. Also, if there is any other contact on the letter, it is much better to communicate through phone or email since most companies have limited support through their inbound mailing process.
Related Forms
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |
![]() Download: PDF, MS Word, OpenDocument |