You can use the following Cease and Desist letter to debt collectors as a template. Request to begin debt settlement negotiations.If the collection agency or creditor rejects your offer, don't lose hope. How to use this sample letter: 1. Read the background below. 2. If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court. 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. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Want to settle your debt?