Learn how to write an effective collection dispute letter with our guide and templates. A debt settlement letter is a tool to negotiate with your creditors and settle your debt at a lump sum payment you're comfortable making.You can use the following Cease and Desist letter to debt collectors as a template. If you doubt that you owe a debt, or that the amount owed is not accurate, your best recourse is to send a debt dispute letter to the collection agency. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now. 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. A pay for delete letter is a negotiation tool to have negative information removed from your credit report. Understand your options when the insurance company makes a lowball injury settlement offer, and see a claimant's sample response letter.