Creditors and DCAs

Template letters to creditors and DCA's

Creditors and DCAs - Letter Templates & Budget Planner

The letters are as follows:

Letter C - Ask your creditors to accept a token payment or no payment on your debts

Letter D - When a creditor refuses your offer of payment

Letter E - When a creditor refuses to freeze interest on your account

Letter F - When a creditor has turned down an offer of payment, interest is still being added, and you want the creditor to take you to court.

Letter G - When creditors have turned down an offer of payment, interest is still being added but you don’t want to go to court

Letter H - When a creditor asks you to agree to a voluntary charge against your home

Letter I - Request for a stay of execution in the High Court

Letter J - Full and final settlement for any debt

Letter K - Ask creditors to write off the debt due to your circumstances

Letter L - Ask your creditors to reconsider if they refuse to write off the debt

Letter M - Dispute your liability for a debt where a creditor has not contacted you for over six years

Letter N - Ask your creditor for a copy of your credit agreement under the Consumer Credit Act 1974

Letter O - Mortgage shortfalls: Breakdown of balance owed

Letter P - Mortgage shortfalls: Please write off the debt

Letter Q - Mortgage shortfalls: Full and final settlement letter

Letter R - Mortgage shortfalls: Lender should not pursue under CML policy

Letter S - Inform your creditor that you are terminating your hire purchase/conditional sale agreement

Some of these letters refer to a budget planner. Here is a simple budget planner which you can fill in to work out how much you can afford to offer your creditors, and you can print this and send with the relevant letter:

Budget PlannerThere are both Excel and On-line versions

Letter A - Ask your creditors to hold action on your account

— [Your Address] June 28, 2006 The Loan Company Company House, Church Street, Newtown, Kent, R1 7HG Dear Sir/Madam Re: Account/Reference Number 4563210025897412 We are writing to inform you that we are seeking advice and assistance regarding our current financial difficulties. To this end, we would appreciate if you could hold any action on the above account for a period of at least 28 days. Also, during this period, could you please freeze interest and/or any other charges accruing on the above account. We look forward to hearing from you as soon as possible. Yours faithfully

Letter B - Ask your creditors to accept pro rata offers of payment on your debts

— [Your Address] June 28, 2006 The Loan Company Company House, Church Street, Newtown, Kent, R1 7HG Dear Sir/Madam Re: Account/Reference Number 4563210025897412 Since making that above agreement with you, our circumstances have changed. We cannot now afford to agreed monthly payments because ... [your paragraph added here] We enclose a Personal Budget sheet which shows our total income from all sources, and our outgoings. As you can see we have only £123 per month left for our creditors. The offers we have made to our creditors have worked out on a pro−rata basis, and we have written to all our creditors asking them to accept reduced payments. In view of our circumstances, please would you agree to accept a reduced offer of £27 per month. If interest or other charges are being added to the account we would be grateful if you would freeze these so that all payments made will reduce what I owe you. Should our circumstances improve we will contact you again. We would be grateful if you would send a paying−in book to make it easier to pay you. Thank you for your assistance. We look forward to hearing from you as soon as possible. Yours faithfully