To fill out this letter, clearly write your name and address at the top. Include the date and the collection agency's name and address.Learn how to write an effective collection dispute letter with our guide and templates. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. A debt settlement letter is all you need to negotiate debts with your creditors. It asks you to pay a certain settlement amount to the collection agency. Want to settle your debt? How to use this sample letter: 1. Read the background below. 2.