I am writing in regards to the above-referenced debt to inform you that I am disputing this debt. Learn how to write an effective collection dispute letter with our guide and templates.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. This is a template letter to your creditors requesting that they forgive your debt and write it off for compassionate reasons. 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 a tool to negotiate with your creditors and settle your debt at a lump sum payment you're comfortable making.