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A debt release letter is a receipt-like document sent from a creditor (or collections agency) to a debtor to inform them that they are free of all financial liability. The letter is sent after the debtor makes their last payment to the creditor to formally end the collections process.
In place of my regular monthly payment of $__________due on the__________________________. I am requesting that you accept payments of $______________paid on the__________. I assure you that I will add no further debt until my financial situation improves. I will begin making normal payments again as soon as possible.
I request written confirmation showing this account as {paid in full or settled} ing to our agreement on {insert date of agreement}. However, should you choose not you provide me with confirmation, I will use your acceptance of this final payment as proof that you agree the account is {paid in full or settled}.
Paid-in-full sample letter Dear [Creditor], I have enclosed my final payment for my account [account number for the debt] with this letter. This letter signifies that my debt has been paid in full on [date], including any applicable interest, fees and penalties, and that I have satisfied my obligations for repayment.
You can write one to your creditor or you may receive one from your creditor. If you write the letter, you should also include a request for confirmation from the creditor both that the debt is paid in full and that they won't pursue any more collections actions against you.
If you've already paid the debt If you're sure that you're talking with a legitimate debt collector, you can send copies of documents that prove you made the payments, including cancelled checks or credit card statements. You may also include copies of any correspondence about settling the debt.