Effective communication is vital to any relationship, be it a personal relationship or a business-type relationship. This also applies to debtors and their debt providers wherein they should be able to resort issues properly as well as discuss details efficiently. This is when debt letters come in handy where either party can create and send the letter to the other party. Templates for this type of letter or document can also be used instead of making one from scratch.
What Is a Debt Letter?
A debt letter is a type of document which is necessary to be made by a collector or a lender to inform a borrower or an individual about the status of his debt. Some of the information which will be stated in the letter would be the information of the account of the borrower along with the details of the debt and the reason or objective of the letter. On the other hand, debt letters are also used by financial organizations and courts to inform companies about the legal actions to be taken in lieu of a debtor’s account.
Debt Validation Letter
Types of Debt Letter Templates
The different types of debt letter templates are allotted for varying objectives or purposes related to providing information about the debt of an individual. Below are some of the types of templates which are used by lenders, collectors, and financial organizations:
Debt Collection Cease and Desist Letter – This is the type of template which is used by courts and financial lawyers or attorneys to inform a debt or loan company about their need to stop communicating and collecting payments from a debtor. The reason for the cease and desist will be stated in the letter as well as the details of the account of the debtor whose debt will be released. In addition, the consequence or the penalty which may be faced by the company for failing to follow the cease and desist order will also be included in the letter such as the filing of a legal complaint to the State court and other related State organizations.
Debt Collection Cease and Desist Letter
Debt Collection Letter – This letter template is suitable to be used by a lender or a financing agency to inform a debtor about the approval of his debt request and loan application as well as about the details of his chosen debt program. The debt repayment method and the frequency of the collection will be some of the essential pieces of information which will have to be explained in this letter along with details on how the debtor can file and send an appeal or complaint if he sees the need to do so.
Debt Collection Letter
Debt Dispute and Validation Letter – Compared to the aforementioned letter templates which are to be sent to the debtor or borrower, this type of letter is only to be used by the debtor himself and will be sent to the financing company. The purpose of this letter is to inform the company about the issues and debt disputes that the debtor sees, as well as the concerns that he wants to clarify and report to the company. The date when the letter will be sent, the name of the company and its address, the name and account number of the debtor, the details of the dispute and validation, and the signature of the debtor will be documented in this type of letter.
Debt Dispute and Validation Letter
Debt Information Letter – This is another letter template which can be used by a debtor, specifically to request for more information about the debt program and his own debt. It is important that the debtor will specify the types of information that he would want the company to respond to and deliver by enlisting questions and subjects to be provided by the company. And just any formal letter, the debtor must also affix his signature along with his name in the letter.
Debt Information Letter
Debt Payment Plan Agreement Letter – This letter is specifically used by debtors to clarify details to their debt providers or to a financial agency. The letter will state the agreed total amount of the debt along with the amount expected to be paid by the debtor regularly and the date when the payments are to be sent. In addition, a statement regarding the necessity of the debt provider’s response will also be included in the letter such as if there is not a response received by the debtor, then it will be noted that the claims defined in the letter were accurate to what had been agreed for the debtor’s payment plan.
Debt Payment Plan Agreement Letter
Debt Collector Letter
Tips in Creating a Debt Letter
When creating a debt letter, the tips below must be noted:
Keep it simple and direct.
Letters are meant to deliver messages to its recipient. And although it is important to state details about the subject of the letter, keeping it simple and concise or short will be the key to communicating well with the other party. On the other hand, if there are further items to discuss with the other party, then a meeting must be scheduled and it should be stated in the letter in order to properly and formally inform the recipient.
Indicate sources.
When stating rules and policies, it is important to include the source of where the rules were obtained such as State Acts or laws associated with financial agreements and debts. This also includes the article number cited from the debt or loan agreement signed by the debtor or provided by the debt provider.
Keep a duplicate of the letter.
The letter is intended to be sent to the recipient, this is why it is relevant to keep a duplicate for the purpose of having a copy of the contents and discussions stated in the letter.
And lastly, before the letter will be sent to the recipient, it should first be reviewed and proofread. The grammars should be checked as well as the words which are used in the letter to ensure that the right message with the right definition and meaning will be delivered.
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