Letters To My Credit Card – Delayed Settlement Letter
October 26, 2009 by: Dave Ozment 
Last week I presented an article sharing a recent experience with a reader/emailer. In this story I referenced a pair of letters I crafted for the benefit of this person, “Ella”.
Well, as fate would have it, my ability to add a downloadable file to an article seems to not be working at this time. This might be user error, but I’m looking into it.
In the meantime, I didn’t want to delay the impact of providing those letters as part of the overall article experiece. Therefore, I’ve pasted below the first letter – Delayed Settlement – and will be providing the second letter – Settlement Letter tomorrow in similar fashion.
Once the issue is resolved I’ll add the downloadable to the original mail and all will be well.
So, changing gears, as you read the letter below, realize that this is a specific letter crafted for a specific person in a specific situation. It is unlike the other tools I’ve provider which are more plug and play. These letters, while adaptable to another situation, are intended more as elements of the larger story.
Read below and please provide your comments. I look forward to hearing your thoughts – good or bad.
Thanks!
<Your Name>
<Your Street Address>
<Your City, State, Zip>
<Month ##, 20##>
Dear <Recipient Name>,
I am writing to you today in reference to my active account with your organization.
Account Number: <insert your account number here>
Balance Due: <insert the outstanding balance on this account>
Due to significant changes in our life circumstances, we regret to inform you that we are no longer able to honor in full the debt obligations we have with your company.
My husband and I are both senior citizens and recent health complications have removed our household from the workforce. This sudden and unplanned change has significantly impacted our income, resulting in our need to approach you today with three messages.
- Effective immediately, we will no longer be sending to you monthly payments against our account balance.
- Understand that food, shelter, and healthcare have become and will remain the central focus of our lives and remaining, and limited cash flow.
- As individuals of character and integrity, we respect the fullness of our obligation even as we are now unable to financially honor it in its fullness. We, however, do wish to settle this balance in the future for a reduced amount according to our ability to pay.
Written and signed offers for future settlement will be diligently measured against our ability to pay and responded to accordingly.
For purposes of protection, yours and ours, we can only accept written settlement offers received through the mail.
Please note that we are trying diligently to do right by your organization and the debt we knowingly owe. However, abusive collection behaviors by your organization or its delegates will signal an unwillingness to cooperate. As we are legally judgment-proof, your unwillingness to cooperate will result in an absolute default of our balance due.
Sincerely,
<Your hand signature on the printed page>
<Your Name Typed>
Photo By: UmmZ
Hey Dave,
Nice letter. One thing that I would refrain from in this first letter, would be to even mention being open to a settlement. There is nothing wrong with explaining your situation, however it will not change the collection action taken by most banks. Most times it is actually better if the client doesn’t send anything at all, unless they are trying to just renegotiate interest rates and make partial payments. If they can’t pay anything at all, sending a letter might make the consumer feel better, but it isn’t going to benefit them in in terms of reduced collection action by a major Nationwide bank.
I know this may seem counter intuitive to an individual trying to be financially responsible but the cold hard reality is credit card companies do not care about you, they do not care about your situation, they do not care how long you have been a client, or how much you have paid them over the years. The only thing they care about is collecting as much as they can.
Damon Day´s last blog ..Debt Settlement Nightmare for Phoenix Woman
Thanks Damon and I mostly agree. Credit card companies do not care. They are heartless organizations that will manipulate their very customers – some business model.
I don’t have the allusion that one would not be harrassed after sending these letters, that is a very low likelyhood. But, sending a letter like this does – in my mind – help the sender feel better and perhaps feel somewhat more in control of the situation. It does not change the situation but it helps me hold a noble face in the situation moreso than if I avoided the situation altogether. Keep in mind, I’m thinking personal accountability of the person in the situation being impacted, not the situation as a whole. I hope that makes sense.
I also think that if the letters are sent as directed, that they *might* land on a sympathetic desk. Admittedly slim odds, but you have to land at a level where the workers are allowed to use their brain rather than in the dregs of the service centers where legal approved scripts rule the day.
As for the idea of settlement…. I see it as a cut to the chase. We can dance around trashed mail and avoided phone calls, but only one thing really resolves the issue and it’s money. Sometimes all you can do is all you can do… and I’m willing to wait until that number starts to sound good to you too!
Thanks for commenting and sharing your thoughts!
Dave
Sure Dave,
This is a nice blog you have here. I have been following it for a few months now. Keep up the great work and info that you have been sharing.
I remember reading back a month or so ago about a discussion you were having with Dave Ramsey’s people over your blog. Forgive me if I missed your update, but was that resolved? And were you able to keep business as usual?
I should hope so considering you are simply bringing further awareness to his teachings and principles.
Damon Day´s last blog ..Get Out of Debt – What Strategy Makes the Most Sense?
Hey Damon, thanks for the encouragement and I appreciate you following along!
I’m still trading mails with Ramsey’s team but nothing has been resolved. It’s a friendly and collaborative discussion so I expect we’ll reach an agreeable solution. Hopefully that allows me to keep on keeping on but we’ll see.
Ironic timing for your message as I was just finishing a draft for an upcoming article which plays from something I recently heard on his program.
Thanks!
Dave
nicely worded letter, it covers the key details but doesn’t waffle and i like the way that you are trying to communicate that the individuals concerned are real people.
Thanks Jonathan, I appreciate the feedback. I think the elements you mentioned are exactly what I was targeting. I also think communicating that message to the appropriate folks in the credit organization – namely the CEO and President of Collections may help facilitate an agreeable resolution. Too many folks run from issues they are facing rather than stand up and face them. Instead, I wanted a letter than admited the shortcoming and attempted to dictate terms.
Dave