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.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. A debt settlement letter is all you need to negotiate debts with your creditors to pay a certain settlement amount to the collection agency. REQUESTED NO. I am disputing this debt because I do not owe it. Because I am disputing this debt, you should not report it to the credit reporting agencies. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. DATE. Some rules and deadlines dictate how long you must respond to a settlement offer. Discover this blog to understand legal settlements for injury claims.