Contacting your creditors

Below are some template letters you can use to write/email your creditors.

Sample six month holding letter

Your name and address here

Creditor’s name and address here

Date

Dear Sir/Madam

Re: Account/Reference Number

I/We have enclosed a financial statement prepared using realistic budgeting figures, given my/our current circumstances. This also shows the current level of debts outstanding. You can see from this information, that I/we are finding it difficult to meet even my/our basic needs at this time. Therefore I/we are unable to make any realistic offer of payment at this time.

I/We request therefore that you give consideration to allowing a suspension of the payments on the account for a period of six months, when the situation can be reviewed.

Include here any possible future potential if appropriate to start repayments again e.g. expecting to go back into work

If interest or other charges are being added to the account I/we would be grateful if you would freeze these so that all payments made will reduce what I/we owe you.

I/we hope you will be sympathetic to my/our request as this would greatly relieve some of the stress the I/we are experiencing.

I/we would appreciate any help you can give me/us.

Yours faithfully

Sign your name here

Print your name here

Sample write off letter

Your name and address here

Creditor’s name and address here

Date

Dear Sir/Madam

Re: Account/Reference Number

I/We have enclosed a financial statement prepared using realistic budgeting figures, given my/our current circumstances. This also shows the current level of debts outstanding.

You can see from this information, that I/we are finding it difficult to meet even my/our basic needs at this time. Therefore I/we are unable to make any realistic offer of payment at this time.

[Explain your personal circumstances and reasons for your financial difficulties. Including any reasons for high expenditure, especially if this relates to any illness or disability]

Therefore I/we would like to request for the outstanding balance to be written off due to financial hardship grounds. The position remains bleak for the foreseeable future. It is unlikely that my/our financial position will improve at all.

I/we hope you will be sympathetic to our request as this would greatly relieve some of the stress the I/we are experiencing.

I/We would appreciate any help you can give me/us.

Yours faithfully

Sign your name here

Print your name here

Sample pro-rate arrangement letter

Your name and address here

Creditor’s name and address here

Date

Dear Sir/Madam

Re: Account/Reference Number

Since making the current agreement with you, my/our circumstances have changed and I/we are unable to pay the current arrangement.

I/We cannot now afford to agreed monthly payments because … Add a paragraph here

We enclose a financial statement that shows my/our total income, and my/our outgoings.

As you can see I/we have only £… per month left for each of my/our creditors given my/our current circumstances.

The offers I/we have made to my/our creditors have been worked out on a pro-rata basis, and I/we have written to all my/our creditors asking them to accept reduced payments.

If interest or other charges are being added to the account I/we would be grateful if you would freeze these so that all payments made will reduce what I/we owe you.

Should my/our circumstances improve in the future I/we will contact you again.

I/We look forward to hearing from you as soon as possible.

Yours faithfully

Sign your name here

Print your name here

Sample token payment letter

Your name and address

Creditor’s name and address here

Date

Dear Sir/Madam[

Re: Account/Reference Number

Since making the current agreement with you, my/our circumstances have changed and I/we are unable to pay the current arrangement.

I/We cannot now afford the agreed monthly payments because … Add a paragraph here

I/We enclose a financial statement that shows my/our total income, and my/our outgoings. As you can see I/we have no money left for my/our creditors given my/our current circumstances.

In view of this, would you please accept a token offer of £… Add offer here. This would be reviewed after six months.

If interest or other charges are being added to the account I/we would be grateful if you would freeze these so that all payments made will reduce what I/we owe you.

Should my/our circumstances improve in the future I/we will contact you again.

I/We look forward to hearing from you as soon as possible.

Yours faithfully

Sign your name here

Print your name here

Sample statute barred letter

Your name and address

Creditor’s name and address here

Date

Dear Sir/Madam[

Re: Account/Reference Number

WITHOUT PREJUDICE

You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued”.

I would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that “it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.

The last correspondence/payment/acknowledgement or payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time.

Unless you can provide evidence of payment or written contact from me in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any court action against me to recover the alleged amount claimed.

The OFT Debt Collection Guidance states further that “continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”.

I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I look forward to hearing from you as soon as possible.

Yours faithfully

Sign your name here

Print your name here

Last updated on 12/12/2022