Fillable Form Paid Debt Removal Request Letter

What is a Paid Debt Removal Request Letter?

A Paid Debt Removal Request Letter is a formal letter used by an individual to essentially negotiate with a debt collector to remove negative information from his or her credit records and credit reporting agencies in exchange for an agreed-upon amount of payment.

How to write a Paid Debt Removal Request Letter?

For your convenience, PDFRun has a Paid Debt Removal Request Letter template that you can use. It should be filled out with the following information:

HEADING

This section includes the personal information of the recipient.

Name

Enter the full legal name of the recipient.

Address

Enter the complete address of the recipient including the city, state, and ZIP code.

Date

Enter the date when you are writing this letter.

RE: IN REGARDS TO THE FOLLOWING ACCOUNT

This is the subject of the request letter.

Account Number

Enter your correct account number

Original Creditor

Enter the name of the original creditor.

Amount Listed

Enter the amount listed of the debt in dollars.

SALUTATION

This section includes to whom you will send the request letter.

Greeting

Enter the name of the recipient.

BODY

This section includes the body of your request letter. It indicates the introduction of your request, details of the negotiation to settle the debt, and the terms of your offer.

Sender’s Name

Enter your full legal name.

Alleged Amount

Enter the alleged amount of your debt in dollars.

CONCLUSION

This section concludes your request letter. It indicates your contact information.

E-Mail

Enter your active e-mail address.

Phone

Enter your active phone number.

This section includes your contact information.

Signature

Affix your signature.

Tips:

If you wish to modify this Paid Debt Removal Request Letter template or write one on your own, here are a few suggestions that might help you in doing so:

• Be direct with the reason why you are writing this request letter.

A Paid Debt Removal Request Letter doesn’t have to be long and complicated. Make sure to directly state your intentions right from the beginning of the letter. Be clear with what you wanted to request from a debt collector in order to avoid any misunderstanding. It is recommended to write your request letter in a one-page document only.

• Provide all the relevant information.

In order to create a well-written Paid Debt Removal Request Letter, you need to indicate all the necessary information regarding your request. This may include the dates, turnaround times, payment amounts, account number, original creditor, and other details that fit your situation. It is also very important to check and make sure that you have entered the correct data before sending the request letter. By doing these, you can avoid any further problems and might fast-track the processing of your request.

• It is advisable to offer an amount that is 40% greater than the original amount.

If you offer less than what the collection agencies paid the original creditor, the chances of them cooperating with you and considering your request will most probably be slim. You should give them a reason and motivate them to remove the record from the credit bureaus by giving them a great offer.

• Make a list of your demands upon settling the debt.

Since a Paid Debt Removal Request Letter is being used as a negotiation tool to get rid of a collection account in exchange for a payment settlement, you must specify the things you should get in return to establish the agreement. Do not forget to include the deletion of your debt from your records.

• Ask a credit repair specialist for help.

It is best to consult a credit repair specialist if you’re having trouble in drafting your Paid Debt Removal Request Letter. Receiving help from someone who has experience in dealing and negotiating with collection agencies will improve the chances of your request letter being approved. It might also save you some money in the process.

Why should I send a Paid Debt Removal Request Letter?

Writing and sending a Paid Debt Removal Request Letter is an attempt to clean up your credit mistakes. Here are some of the reasons why you should make this attempt:

• Late payments and overdue account citations will reflect on your credit history and might hurt your profile, status, and credibility.
• A bad credit situation affects your ability to find the best credit offers, any type of loan option, or even a rental agreement.
• It will help you start improving your credit score. Some benefits of a higher credit score are lower interest rates, higher credit limits, accessibility to more offers, and better chances in loan approval.
• Even after paying off your debt and collection accounts, negative credit items can remain on your credit bureau file for up to seven years.
• Even if your request letter is rejected, it won’t cost you anything and it won’t damage your credit any further.

What should I do if a Paid Debt Removal Request Letter was rejected?

There is no guarantee that the Paid Debt Removal Request Letter you sent will be approved—after all, it’s just a request. If your letter was rejected, you might want to consider other choices in dealing with a negative item on your credit report. Some of these are:

• Send a goodwill letter to the creditor.

A goodwill letter is where you ask for the creditor’s forgiveness and nicely ask them to remove a negative item on your credit reports.

• Pay the debt in full.

Settle the outstanding balance to avoid any further negative items in your credit history.

• Wait until the account is transferred to another collector.

The account is being moved to another collector every other six months often happens. However, there is no guarantee that the same thing will happen to you. If by any chance, your account was transferred to another collector then you can write and send a new Paid Debt Removal Request Letter.

• Look for other rights available to you under FCRA laws.

Fair Credit Reporting Act (FCRA) is a federal law responsible for protecting consumers’ information. You may opt to exercise your rights indicated in this law such as the right to request and obtain any and all information in your file disclosure, the right to one free credit disclosure every 12 months, and the right to dispute and report inaccurate information in your file.