Sample common letters to creditors

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Do you need to tell your side to the creditor? Don't put it off after you have seen these samples. Hopefully, this will make your life more easier since you will some idea of what and how to say regarding your situation. I discuss writing letters in when you need to:

  • dispute a billing error on your account
  • change due date on your bill
  • have the creditor accept a partial payment
  • postpone making payments due to loss of job

A letter to dispute a billing error on your account

Chances are you have found a billing error in the past. Upon discovering the error, did you immediately contact the creditor to report the error? In billing errors, as a way of convenience, I first email the creditor and then follow up with a letter, if necessary. When you write to report a billing error, what information do you include? Check with your creditor for specific information- what you should include:

Date
Your name address and information that identifies you
Reason(s) or explain why you believe there is an error – describe the problem as best you can with as much information you have
Include/enclose any evidence that supports your claim
Sign, date, and send your letter

Below is a sample letter for disputing a billing error

July 15, 2006

Barry Walter
5856 New Street
Baltimore, MD 21249

Account #: 4587-8958-8457-2035

Visa Card
541 Billing Street
New York, NY 12585

Dear Sir or Madam:

(If necessary mention your phone or email conversation regarding this problem with the creditor) I am writing you to dispute a billing error in the amount of $______ on my account. The amount is inaccurate because (describe the problem, include here information as much as possible: indicate what you know about the disputed charge. State so if you know nothing about the charge.).

In support of my position, I have enclosed copies of (describe any enclosed information, such as sales receipts). Please investigate this matter.

I request as soon as possible that the error is corrected, that any finance and other charges related to the disputed amount be credited to my account, and that I receive an accurate statement.

Please let me know if you need any further information.

Sincerely,

 

Your name

Changing a due date on your bill

My chase credit card offers me a nice feature that allows me to change my billing due date online. I found this feature helpful while I was in college, when I was short on money. Not all credit cards offer you the option of changing a due date online. So you may have to call or write them. What do you say to them? Use this general information:

  • tell them who you are
  • briefly explain why you need the change
  • suggest alternative due date option(s)

Below is a sample letter for Changing a due date on your account

July 15, 2006

Barry Walter
5856 New Street
Baltimore, MD 21249

Account #: 4587-8958-8457-2035

Visa Card
541 Billing Street
New York, NY 12585

Dear Sir or Madam:

The monthly payment on this account is currently due on (or around) the ___ (write day) of each month.

My financial situation has recently changed (briefly describe your situation). I would like you to change the due date to ____ (list alternate day) of each month. This change will help me tremendously to stay current with my account.

Thank you for your assistance with this matter. Please contact me in writing at the above address with your response.

Sincerely,

 

Your name

Requesting a creditor to accept a partial payment

Financial situation can change at any time for any of us. Loosing of a job or increase in expenses is not certainly a welcome news to anyone. Such a situation requires difficult financial decisions and greater financial sacrifices.

If you fall into a financial difficulty, one of the tips I have for you is to contact your creditors and seek help. Make a hardship request with your creditors to eliminate or have your creditors accept reduced monthly payments. To make such a request, contact your creditor with the following information (or additional specific information that your creditor requests from you):

  • describe your financial difficulty (loss of job/income, unforeseen large expense, etc)
  • enclose proof of your expenses exceeding your income
  • offer how much you can pay
  • indicate when you expect to be able to pay the regular payment

For your convenience, here is a sample writing that can help you contact your creditor to request a partial payment on your account:

July 16, 2006

Barry Walter
5856 New Street
Baltimore, MD 21249

Account #: 4587-8958-8457-2035

Visa Card
541 Billing Street
New York, NY 12585

Dear Sir or Madam:

Due to (briefly describe your situation), I am experiencing financial difficulty. In this situation, I am unable to pay my bills. As noted in the enclosed (enclose expense sheet and proof of income, if any), my expenses far exceed my income.

I believe I will need about 4 months to improve (i.e., finding work or some cash coming from a settlement) my financial situation. For the next 4 months, I believe I will need each creditor and you to accept a reduced payment. Among all the necessary expenses, I am not able to meet the regular payment of $_____ due to you each month. Instead, I would be able to pay you $____ per month for during this emergency.

As I would like to deal with you directly, please don’t place my account with a collection agency. Additionally, as I do not wish to go further into debt, I request that you consider withholding interest on my account in this situation.

I assure you that I will resume regular payment as soon as my financial situation improves. Thank you!

Sincerely,

 

Your name

Request for postponing of making payments due to loss of job

Phones start to ring, your mailbox gets more full, you email inbox may also receive more messages when you stop making payments to your creditors. If this is happening to you because you are out of work, you may be able to stop such collection attempts by contacting your lenders. Explain to them that you are out of work and cannot afford to pay all the bills. I am below showing a sample letter that shows what and how to communicate with your lenders to make the case for seeking help.

July 16, 2006

Barry Walter
5856 New Street
Baltimore, MD 21249

Account #: 4587-8958-8457-2035

Visa Card
541 Billing Street
New York, NY 12585

Dear Sir or Madam:

I am currently out of work. I am doing my best to handle my finical situation as I don’t have much savings or any other income to pay all of bills.

I have currently very limited income (list source of income such as unemployment, temporary disability, etc.) and it is not enough for me to make any payments toward my debt. I am enclosing proof of my income along with a expense sheet. I am hoping this will convince you to postpone the collection of any payments due now and for the next a few months.

I request that you do not forward my account to a collection agency as I would like to deal with you directly. Please also don’t asses any interest on my account as it will put me deeper into debt.

I am hoping my financial situation will to improve within [indicate when i.e., a few months) because (describe how, i.e., getting a new job). Once my financial situation changes, I will immediately notify you to make payment arrangements.

Please find enclosed a copy of my [proof of income], as well as a monthly expense sheet. I am [describe what you hope to happen in the future i.e.,], and am hoping to be in a position to resume payments very soon.

I thank you for your understanding during this difficult time. Please contact me at the above address for further communication.

Sincerely,

 

Your name

Posted on:

Laugh a little with these jokes

1. Why did 18 math major students go to see a movie? Because the sign said Under 18 not allowed to watch the movie.

2. Two guys are riding on a motorcycle in India and need directions to where they are headed. They see a man (drunk) walking on the road toward them. They stopped the motorcycle and asked for directions. The guy thinks for a moment and says you just passed it! Luckily, you have not gone far. It is just two miles behind me!

3. A husband points to a marriage counselor that his wife fluently speaks two languages but she cannot keep her mouth shut in one.

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