The letter offers to settle a debt for less than the original balance owed, requesting that the collection agency accept a one-time lump sum payment in exchange for reporting the debt as satisfied to credit bureaus and ceasing further collection attempts. It provides the account balance and settlement offer amount, and lists terms for the agency to agree to in writing before payment is sent.

1. Creditor Settlement Offer
The purpose of this credit repair letter is meant for offering a settlement to pay off a debt that is
owed. If the debt has already been sold to a collection company you can probably settle for less
then 50% of the original balance.
To Whom It May Concern,
According to your records, I owe an outstanding balance of [Balance Amount in $], in reference to
account number [Account Number].
I feel I have a moral obligation to pay this debt I owe; however, I do not have enough money to pay you in
full. I would like to offer you a settlement amount of [Settlement Amount in $] to consider this account
paid.
Please accept this offer, as it is all I can afford. If you accept this offer; please send me a letter that you
are in agreement to the following terms:
- You accept a one time lump sum payment of [Settlement Amount in $] to satisfy my debt of
[Balance Amount in $], owed to you.
- You agree to cease collection attempts.
- You agree to report to the credit bureaus Experian, Trans Union, and Equifax that this debt has
been satisfied. Preferably that the debt has been paid in full; however that decision rests on your
shoulders.
- You will send proof of satisfaction to me stating that the debt has been satisfied as soon as my
funds have cleared.
When I receive your letter I will immediately send you the agreed amount so I can get this burden behind
me. I appreciate your consideration of my offer and thank you for your time.
Sincerely,
[Signature]
[Name]
Address:
[City, State Zip]
Phone Number: [Phone