Sending Your Last and Final Payment to Creditor or Collection Agency- Sample Letter

Finally you feel a sense of close relief that you are paying the final payment on a debt that has held you back financially. When sending your last payment, you will need to confirm that the creditor or collection agency acknowledges that what you are sending them is now your final payment of the debt.

Alot of people make the mistake of writing on the check itself a notation saying,”Full Payment” or “Final Payment”, but in alot of cases people are not aware that just doing that is not enough to cover you legally. It may not relief you of the debt legally and the creditor or collection agency can come back and claim that you have not fully paid the debt and it does not have a zero balance.

The best suggestion is to avoid such a heartache and do it right from the get-go. Send a letter informing the creditor or collection agency that you intend to send your final payment of the debt in 30 (thirty) days. Thus, if you do not receive a response or reply from the creditor or collection agency, then you can conclude that they accept that the payment you will be sending will be your final and last payment.

So, this is the summary of what you do:

1. Send your final payment and mark it as,”paid in full”
2. If the creditor does not to reply or respond, but cashes your check, then take creditor or collection agency to court

Go ahead and check out our sample letter. Use it to compose your Last and Final Payment letter to inform your creditor or collection agency. Go ahead and copy and paste the sample letter in your favorite text editor or word processor, then modify it to suit your own situation as needed.
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Today’s Date

Your Name
Street Address
City, State, Zip

Attention: {name of collector or collection agency}
Street Address
City, State, Zip

RE: Collection letter dated {date of letter here} or phone call on {date of call here} reference account #: {account or reference number}

Dear Mr./Ms. {Collector’s or Collection Agency’s Name}

My records show the balance on the above referenced account to be $_______. This letter is to inform you that in 30 days from the date of this letter I intend to send a final payment for that exact amount and mark the instrument “Paid in Full”.

If you disagree with my calculations, I expect to receive a written explanation from you before 30 days otherwise I will assume you agree with my calculations and will accept my final payment and, after cashing my final payment show my account as zero balance.

If you have any questions concerning this matter, I can be reached at {insert daytime phone number and area code}.

Sincerely,

Your Signature above your printed name
Your Printed Name
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NOTE** Please make sure you send this Final Payment Notice letter using “return receipt request or registered mail”. Make sure you also keep a copy of the letter for your own records.