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 contains a proposal offer that will hopefully open the door to negotiate a fair and reasonable debt settlement.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. 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. Parties submitting class action settlements for preliminary and final approval in the Northern District of California should review and follow these guidelines. Learn how to write an effective collection dispute letter with our guide and templates.