A “Sample Letter To Stop Collection Agency From Payment Plan” is a letter. It tells a collection agency to stop your payment plan. People write this when they can no longer afford the plan. Maybe their income changed. Perhaps they found a better way to handle the debt.
Need to end a payment plan with a collection agency? You’re in the right place. We’ll give you letter samples. These make it easy to write your own letter.
Our samples will help you. You can quickly create a letter to send. These letters are clear and to the point. They will help you communicate effectively.
Sample Letter To Stop Collection Agency From Payment Plan
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Email Address]
[Your Phone Number]
[Date]
[Collection Agency Name]
[Collection Agency Address]
[Collection Agency City, State, Zip Code]
Subject: Regarding Account Number [Your Account Number] – Cease Payment Plan
To Whom It May Concern:
I am writing to inform you that I am discontinuing my current payment plan for the above-referenced account.
As of this date, I will no longer be making payments according to the previously agreed upon schedule. This decision is based on [briefly state reason, e.g., a change in my financial circumstances].
Please cease all automatic withdrawals or any other form of payment collection under the terms of the previous payment plan.
This letter is not an admission of debt, nor does it serve as an agreement to repay the debt in the future. I am aware that stopping this payment plan may have consequences, and I understand my rights under the Fair Debt Collection Practices Act.
I request written confirmation that you have received this notice and that the payment plan has been terminated.
Sincerely,
[Your Signature]
How to Write Sample Letter To Stop Collection Agency From Payment Plan
1. Subject Line: Brevity is Bliss
The subject line is your initial communiqué. Be direct and avoid ambiguity. Something like “Cease Payment Plan – Account # [Your Account Number]” will suffice. It’s succinct and pinpoints the letter’s intent immediately.
2. Salutation: A Formal Overture
Address the collection agency with due formality. “Dear [Collection Agency Name],” is a dependable choice. If you know the specific representative, using their name is even better, adding a personal touch. Avoid overly casual greetings.
3. Introductory Paragraph: State Your Intent Concisely
Get straight to the point. This paragraph should clearly state that you are revoking your agreement to the payment plan. For instance: “This letter serves as formal notification that I am rescinding my agreement to the payment plan established on [Date] for account number [Your Account Number].” No need for protracted explanations here.
4. Body Paragraphs: Elucidate Your Reasoning
Here’s where you elaborate, but keep it pithy. You are not obliged to offer profuse apologies or lengthy justifications. A straightforward explanation is usually best. Consider these options:
- “My financial circumstances have altered significantly, rendering me unable to continue with the agreed-upon payment schedule.”
- “I am pursuing an alternative debt resolution strategy.”
- “I have secured legal counsel and am acting under their advisement.”
Choose the statement that best mirrors your situation. Always maintain a civil, professional tone.
5. Demand for Confirmation: Ensure Acknowledgment
Include a sentence that mandates acknowledgment of your request. For example: “I request written confirmation that the payment plan has been terminated and that no further deductions will be made from my account.” This establishes a paper trail and holds them accountable.
6. Closing: A Professional Farewell
Opt for a conventional closing. “Sincerely,” or “Yours truly,” followed by your signature and printed name beneath. This reinforces the formal nature of the communication.
7. Contact Information: Verify Your Identity
Beneath your signature, provide your full name, address, phone number, and email address. Ensure this information is accurate and legible. This allows the collection agency to readily verify your identity and respond to your correspondence.
Frequently Asked Questions: Stopping a Collection Agency Payment Plan
This section addresses common inquiries regarding ceasing payment arrangements with collection agencies. Understanding your rights and the proper procedure is crucial when deciding to discontinue a payment plan.
Can I legally stop a payment plan with a collection agency?
Yes, you generally have the right to stop a payment plan with a collection agency. However, ceasing payments may lead to further collection efforts, including lawsuits.
What should my letter to the collection agency include?
Your letter should clearly state your intention to stop the payment plan, include your account number, the date, and your signature. Consider sending it via certified mail for proof of delivery.
Will stopping payments affect my credit score?
It is likely that stopping payments on a debt in collection will negatively impact your credit score, as it may indicate non-payment.
What are the potential consequences of stopping a payment plan?
Potential consequences include continued collection calls, letters, negative credit reporting, and potential legal action such as a lawsuit to recover the debt.
Is there a better alternative than stopping payments altogether?
Consider negotiating a settlement for a lower amount or exploring debt management options. Consult with a financial advisor for personalized guidance.
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