How to Write a Final Payment Letter
- 1). Date and address the letter. At the top of the letter, write the date. Include your name, address and phone number below the date. Address the letter to the creditor or collector by writing the organization's name, contact person's name and the address.
- 2). Include your account number. Below the addresses, write the name of your account number or reference number. Place this at the top of the letter to enable the reader to easily understand to which account this letter pertains.
- 3). Introduce the purpose for writing the letter. A final payment letter is used to finalize a debt you owe and cease any further communication with the debtor, other than to receive a letter stating the debt has been satisfied. State the amount you owe and include the amount you will pay. These two amounts may not match. Sometimes creditors agree to dismiss a portion of a debt if a certain amount is paid by a specified date.
- 4). Explain that the payment will be marked as "Paid in Full." Include a statement that clarifies your intentions of fully satisfying the debt. Inform the creditor that you will mail a payment for a specified amount and that it will be in the form of a check. The check will contain the words "Paid in Full" and that you will assume if the check is cashed that the creditor agrees with your terms.
- 5). Ask the creditor to review your account. Request that the creditor take the time to review your file and if a discrepancy is found, you would like a written explanation within 30 days. Inform the creditor that if you do not hear back, you will assume the creditor agrees with the information contained in this letter. Explain that if this occurs, you will assume that when the check is cashed, you will expect no further communication with the organization.
- 6). Close the letter. Offer your phone number so the creditor can reach you if any questions or comments arise regarding this matter. Sign the letter "Sincerely", followed by your name.
- 7). Send the letter by certified mail, with return receipt. The only way to know that the creditor received the letter is by sending it certified. This requires a signature from the creditor's office acknowledging the receipt of the letter.