Request to begin debt settlement negotiations. If the collection agency or creditor rejects your offer, don't lose hope.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. I am writing in regards to the above-referenced debt to inform you that I am disputing this debt. A debt settlement letter is all you need to negotiate debts with your creditors to pay a certain settlement amount to the collection agency. Want to settle your debt? Offer what you feel you can afford to pay and see if the collection agency is willing to accept. Use this sample debt settlement letter. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. DATE.