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.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. Understand your options when the insurance company makes a lowball injury settlement offer, and see a claimant's sample response letter. A pay for delete letter is a negotiation tool to have negative information removed from your credit report. Request to begin debt settlement negotiations. If the collection agency or creditor rejects your offer, don't lose hope. 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. You can use the following Cease and Desist letter to debt collectors as a template.