How to write full and final settlement mail

A "Full and Final Settlement" letter is a formal document used to notify a creditor that a debt has been fully paid and that the creditor should not pursue further collection activities. Here's a sample template to help you write a Full and Final Settlement letter:

[Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Date]

[Creditor's Name] [Creditor's Address] [City, State, ZIP]

Dear [Creditor's Representative],

Re: Full and Final Settlement of [Debt Amount] owed on [Account Number]

This letter serves as formal notice that I, [Your Name], have made full payment of the outstanding balance of [Debt Amount] owed on [Account Number] to [Creditor's Name]. The payment was made on [Date of Payment] in the amount of [Payment Amount].

As per our agreement, this payment constitutes a full and final settlement of the debt, and I request that you acknowledge receipt of this payment and confirm that the account is now considered paid in full.

I hereby request that you:

  1. Update your records to reflect the payment and closure of the account.
  2. Cease all further collection activities, including phone calls, letters, and any other attempts to collect the debt.
  3. Confirm in writing that the debt has been fully satisfied and that I am no longer responsible for any further payments.

Please note that I have made this payment in good faith and expect that you will honor our agreement. If I do not receive a response or confirmation of the settlement within [Timeframe, e.g., 30 days], I will consider the debt to be still outstanding and may seek legal action to resolve the matter.

Please confirm receipt of this letter and acknowledge the full and final settlement of the debt by signing and returning a copy of this letter to me at the above address.

Thank you for your prompt attention to this matter.

Sincerely,

[Your Signature] [Your Name]

Enclosures: [Attach a copy of the payment receipt or proof of payment]

Tips:

  1. Make sure to include all relevant details, such as the debt amount, account number, and payment date.
  2. Keep a copy of the letter for your records.
  3. Send the letter via certified mail with return receipt requested to ensure that the creditor receives it.
  4. Be patient and allow the creditor sufficient time to process the payment and respond to your letter.
  5. If you don't receive a response or confirmation of the settlement, consider seeking legal advice or contacting a consumer protection agency for assistance.

Remember to customize the template according to your specific situation and needs.