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.Request to begin debt settlement negotiations. If the collection agency or creditor rejects your offer, don't lose hope. You can use the following Cease and Desist letter to debt collectors as a template. Learn how to write an effective collection dispute letter with our guide and templates. A demand letter is written notice to the debtor that includes a formal demand for payment of the debt. Demand letters are essentially a cease and desist letter, formally requesting that the creditor or debt collector stop contacting you. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. How to use this sample letter: 1.