You can use the following Cease and Desist letter to debt collectors as a template. A debt settlement letter contains a proposal offer that will hopefully open the door to negotiate a fair and reasonable debt settlement.Demand letters are essentially a cease and desist letter, formally requesting that the creditor or debt collector stop contacting you. 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. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. 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. FCS is an outofstate debt collector and is not a law firm. 28.