Learn how to write an effective collection dispute letter with our guide and templates. If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court.Rejecting a settlement letter could either lead to further negotiations or to a courtroom trial where you seek a jury award for your losses. I am writing in regards to the above-referenced debt to inform you that I am disputing this debt. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete.