Use the appropriate Proof of Collection Letter to reply to any debt collection agency who claims you owe them money. In order to be effective, it is important you use the proper wording when writing them. The letter below is an example you can use to clean up your report.
Some collection agencies will buy past debt from the original creditor. When this happens the collection agency will pay pennies on the dollar to the original creditor. An example of this would be money owed on a medical bill of $150.00 and the collection agency will pay the medical billing department $80.00 for that debt. So when the collection agency collects the $150.00 they keep the total amount. This letter will be used if you don’t know what creditor/debt the agency is representing. Some collection agencies will sell a collection to another agency to try to recoup some of their money.
Whether an account goes to an agency or stays within the creditors billing department you generally can settle that debt for 50-70 percent of the original amount. If this option is exercised then make certain the agreed reduced amount is done in writing BEFORE you pay that amount.
Direct Source Credit Repair Letters
- All Credit Repair Letters
- Unauthorized Credit Inquiry Letters
- Proof of Collection Letters
- Courtesy Letters
- Duplicate Accounts Letters
Use These Proof of Collection Letters
- Individual Accounts: Individual Proof of Collection Letter
- Joint Accounts: Joint Proof of Collection Letter
Sample Proof of Collection Letter
[Your Name]
[Your Address]
[City, State Zip]
[Credit Collector]
[Street Address]
[City, State Zip]
[DATE]
Dear Collector,
I am writing in response to your letter dated [month, day, year] {copy enclosed). This is the first letter I’ve received from you on this matter. I do not believe that I owe what you say I owe, and I request that you please do the following:
- Tell me what this money that you say I owe is for
- Show me how you calculated what you say I owe
- Give me copies of any papers that show I agreed to pay what you say I owe
- Show me that you are licensed in my state, and give me your license number
- Stop contacting me about this or any other matter you have, except to provide me with proof that I owe what you say I owe
I demand that you also send a copy of this dispute to the company that you say I owe money to, so that they do not report this on my credit report. I further demand that if you have reported me to a credit reporting company, you tell them that I do not agree with this debt.
Sincerely,
[Your Signature]
____________________
[Your name typed]