Settlement letter
Debt, arrears & collectionsA letter that confirms a debt has been settled or reduced.
Overview
It records the agreement between you and the creditor.
It is important evidence for future disputes.
Why it matters
- It proves the debt was settled.
- It protects you from future claims.
- It helps update credit records.
FAQs
Who should issue the settlement letter?
The creditor or debt owner should provide it in writing.
Should I keep the letter?
Yes. Keep it in case you need to prove the settlement.
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