Creditor Demand, Response To One

Creditor Demand, Response to One
Option One: You acknowledge the debt and know it must be paid. However, you believe you are entitled
to an offset or reduction, need time to pay the debt, and/or wish to seek an overall reduction in the debt in
either an absolute or percentage amount.
Date:
Dear ___________ (Creditor):
Thank you for your letter of _______________. .
We want you to know we take your concern very seriously, as expressed in your letter. In that regard, we
wish to make the following explanation and provide the following information:
______________________________________________________________________
We hope you understand our concerns and hope you will seriously consider compromising your claim as
a result. We would welcome your thoughts on the matter so we can settle this amicably for all parties.
Please contact us at your convenience to discuss the matter further.
Please direct any future communication to me as follows:
__________________________ (Best address; best phone number; email address, if preferred).
Yours very truly,
_____________
Option Two: You dispute the debt in question. It is not a secured debt so you feel comfortable in
disputing it strongly because specific collateral cannot be liquidated under the claim (such as your car
under an auto loan or house under a secured mortgage).
Date:
We want you to know we take your concern seriously, as expressed in your letter. In that regard we wish
to make the following explanation about our reasons for disputing this debt and provide the following
information for your review:
______________________________________________________________________
You should recognize our position that this debt is disputed in its entirety for the reasons stated above.
We welcome your thoughts on the matter so we can settle this amicably for all parties. Please contact us
at your convenience to discuss the matter further.
Yours very truly,
_____________
Option Three: You acknowledge the debt in question and it is secured by collateral that is important to
you (such as your car or house). You need time or a new plan to pay the indebtedness either because
you simply do not have the money or temporary circumstances are preventing you from making all of the
payments.
Date:
We want you to know we take your concern very seriously, as expressed in your letter. In that regard, we
wish to make the following explanation about our reasons for currently not being able to pay our
obligations in a timely manner. In that light, the following information is provided below for your review:
______________________________________________________________________
You should recognize our position that we owe this debt but are unable to pay it under the current
payment plan because of the unfortunate circumstances stated above. We would welcome the
opportunity, at your convenience, to discuss the matter more thoroughly and see if we can settle on a
modified but temporary repayment plan until we can once again commit to making regular payments
under the original payment plan.
Please contact us at your convenience to discuss the matter further and set up a meeting for a thorough
discussion of possible options that will suit your needs and we can responsibly commit to making at this
time.
Yours very truly,
_____________
Credit Demand, Response to
Review List
This review list is provided to inform you about the document in question and to assist you in completing
it.
1. You have one chance to make a first impression. It is important that your first contact with the
other side is respectful and firm. Keep in mind that this is an occasional problem for you. It is
their life. Collections is a very big business. This is personal for you but not for them, unless you
make it that way. We encourage you to be respectful to them in all your conduct because they
encounter that approach rarely and, like most people, will respond better to good treatment as
long as you do not appear “weak” or “vulnerable.” In addition, more practically, the writer
representing the creditor usually has substantial discretion to settle and revise indebtedness. If
you are respectful and make a sound case, they will be more apt to use their discretion in your
favor to reward your behavior and earn their fee at the same time. Therefore, you have the
opportunity to have a win/win for both sides.
2. Your objective in your contact is to gauge what they can do. What are the limits of their authority
to compromise your debt, eliminate the indebtedness entirely, and/or set up a new payment plan.
Interestingly, most Collections people do not alert the debtor as to their ability to negotiate. As a
result, a lot of deals don’t get done. Open-ended questions by you can get you a better sense of
what they can do. Such questions are, “What can you do to settle this debt?” “What options can
you present that your client might be willing to accept?” And so on and so on.
3. The writer or negotiator writing the letter, except in the case of a secured house or car loan, rarely
expects to get “all” the money at once. They are authorized to compromise. You need to let
them maintain the fiction of “higher authority” (that is, their client decides the final amount, etc.,
etc.) so they are able to show more concern for your side of the equation rather than be harsh
with you in a one on one negotiation. This approach, then, helps both sides reach a meeting of
the minds. You, too, can do the same thing. For example, “I would love to pay right now but my
wife/husband/partner won’t abide by it.” You need to state this credibly so you relieve the
harshness of the discussion; however, do not take it too far because the other side “knows”
better.
4. After a preliminary conversation or meeting, you should have the parameters in mind and should
be able to determine whether you can or cannot meet them. If you can, do it. If you cannot, then
you probably have litigation in your future and should refer the matter over to a lawyer first for
their advice and secondly to prepare any legal steps required in your defense.
5. As to the letter itself, you must sign it and include as much detail as possible about the whys and
wherefores of the deal. Copies of the information related to this situation should be put together
in a clear concise format. This enhances your position, in the eyes of the creditor, as to your
being a responsible debtor and shows your preparation for negotiations. Set up your own file with
the same copies. We recommend numbering your copies so you have an orderly file that can be
referred to in sequence (that is, document 1, 2, 3 and so on).
6. As with any document in this CD, if you have any questions or concerns about your rights,
responsibilities or obligations in this matter, consult an attorney.

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Creditor Demand, Response To One

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Creditor Demand, Response to One

Dear ___________ (Creditor):

Thank you for your letter of _______________. .

Please direct any future communication to me as follows:

__________________________ (Best address; best phone number; email address, if preferred).

Yours very truly,

Dear ___________ (Creditor):

Thank you for your letter of _______________. .

Please direct any future communication to me as follows:

__________________________ (Best address; best phone number; email address, if preferred).

Yours very truly,

Dear ___________ (Creditor):

Thank you for your letter of _______________. .

Please direct any future communication to me as follows:

__________________________ (Best address; best phone number; email address, if preferred).

Yours very truly,

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