Debt Release Letter – After Final Payment

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Updated April 20, 2022

A Debt Release Letter is a letter written by a creditor to a debtor when their debt has been recouped in full. It establishes that a financial obligation no longer exists between the creditor and debtor. The debtor typically requests this letter from their creditor as a receipt to prove to a credit reporting agency that a collection needs to be removed from their credit report.

Sample

DEBT RELEASE LETTER – FINAL PAYMENT

 

John Freeman
123 Rockstone Way
Abington, Massachusetts 02351

 

Attention: Discount Collections Agency
1500 Accounting Way
Hillsdale, Mississippi 39455

To Whom This May Concern,

In this envelope, you will find my last and final payment $238.62 for the account of John Freeman (Account Number: 837272622). Therefore, any statements made to credit agencies or other credit reporting bureaus must be made aware that this debt has been paid. Furthermore, you shall refrain from making any more claims in relation to this debt.

As this debt is now cleared I do not expect to hear from you except to acknowledge that this account has been paid-in-full. Any additional communication would be considered harassment which would be reported immediately to the State Attorney General’s office or the Federal Trade Commission.

Please confirm this release and afterward delete any information about this account from your records.

Sincerely,

John Freeman

(Video) What is a Debt Release Letter?

How to Write

1 – Gain A Copy Of This Letter Template Through This Page

The template required to send a release letter is available directly on this page. You may use any of the buttons beneath the image to download it when you are ready to fill it out. You may open it as an Adobe PDF, Microsoft Word (.docx), or Open Document Text (.odt) file depending upon the software in your system.

2 – The Header Must Have Some Pieces Of Information Supplied

The heading of this letter will require some standard information. First, locate the three blank lines under the words “From” near the upper left-hand corner of the page. Fill in the Legal Name of the Sender on the first blank line. On the second and third blank line’s report the Sender’s Mailing Address Next, using the blank lines beneath the word “To,” document the Recipient’s Full Name and Address.

3 – Report The Facts Concerning The Debt

The body of this letter will require three pieces of information. First, on the blank space following the dollar sign enter the Payment Amount that accompanies this letter.You will also need to report the Account Information assigned to the Debt being fulfilled. First report the Account Holder’s Name on the blank space following the phrase “…For The Account Of.”Record the Account Number associated with this payment on the blank line in the parentheses (labeled “Account Number.”

4 – Close This Letter With The Creditor Signature

Once the requested items have been supplied to this letter, the Sender may sign his or her Name on the blank line below the word “Sincerely”