Debt Settlement Letters

Chase Debt Settlement Letter

Bank of America Debt Settlement Letter

Your Debt Settlement Letter is an offer from the creditor, or collection agency to settle that one particular account / debt. Although unintentional, some Debt Settlement Companies don't fully inform their clients when it comes down to actually explaining the debt settlement services being rendered and one of the most important pieces of information is the debt settlement letter itself.

The purpose of a debt settlement letter is to document the dissolution of the account / debt stated per agreement / account. A document that proves for all time that you are done with that debt forever.

Debt settlement letters are essential to the settlement procedure, primarily because of the billion dollar debt purchasing business - debt junkies - collection portfolio companies - that scoop up millions of old debts for pennies on the dollar, with the intention of collecting debts from the actual consumer.

FYI - When a creditor reduces a debt in the amount of $600 or more, the creditor is required to report that to the IRS on Form 1099-C, Cancellation of Debt, why? So they can write it off during tax season. This reduced amount has to be claimed as common income by the debtor / client on their income tax return for that year.

In most cases the debt junkies - collection agencies don't realize that the debt no longer exist. Consumers that settle only based on a verbal recognition can find that their (settled) debt was sold to a debt buyer / collector who just refuses to think the account has been settled.

Even if you don't physically have a settlement letter you're still alright, because the creditor knows your account has been settled through the debt settlement company, and has reported the settlement to the credit bureau.

Beware - Collection agencies will state without a settlement letter, you can do nothing - this is a lie, and desperate attempt to collect no longer existent debts that have been closed. They previously lost money on you by not collecting the debt they bought, why? Because you settled your debts the smart, affordable way - with us - the Debt Settlement Company.

Personal Debt Settlement Letter - If your debts didn't get approved through the Debt Settlement Companies underwritting department, or you'd like to settle your own debts here is a generic letter you can send to the collection agency after initially contacting them - (assuming your debts have already been sent to collections) in an effort to settle / negotiate your account.

DEBT SETTLEMENT LETTER

YOUR NAME
YOUR ADDRESS
YOUR CITY, STATE, ZIP CODE

TODAY'S DATE

COLLECTOR'S NAME HERE
COLLECTOR'S ADDRESS HERE
COLLECTOR'S CITY, STATE, ZIP

RE: Acct. # *************

Dear (who ever you spoke with):
As we discussed, I came into financial hardship and no longer able to pay on my account. As a result, the above-mentioned account was sent to collections (or charged off) by your company.

Since then, I have obtained a very rewarding and stable job. I would now like to either resume payments on this account at $(however much) per month, or simply pay the account in full.

I recently obtained a copy of my credit report and noted that your company has reported this account as: (delinquent, sent to collections). I wish to bring this account or matter to a resolution that will be fair and beneficial for both of us. I hereby propose to pay you: X monthly payments of $money, or remit a check to you in the amount of $debt as payment in full provided you are willing to send me a letter stating you will report this to any and all credit reporting agencies as: “PAID IN FULL” or notify me in writing that you agree to delete this item from any and all credit reporting agencies.

Due to the inequities of the system I AM NOT agreeable to accepting a 'PAID P & L' or 'CHARGE OFF' for an additional amount of time on my credit report. It is my position that I have suffered enough as a result of this problem.

Upon receipt of your letter I will forward you a cashier's check or money order in the amount of (Agreed $$$).

Yours Truly,
Your signature / Today's date (signed)

Your name / Today's date (printed)

*ONLY USE THIS SETTLEMENT LETTER IF YOUR ACCOUNT HAS BEEN SENT TO COLLECTIONS*

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