A Debt Settlement Letter is a letter offering to settle a debt for a lesser amount than what is owed. The following Sample Debt Settlement Letter is an offer from a collection agency.

LAST RESORT FINANCIAL SERVICES, INC.
3916 South Dixsmyth
Camden, ID XXXXX

May 16, 2005

ID # 76418554-20
Clarkston, GA 30021-xxxx

Re: Capital One bank
Original Creditor: Capital One Bank

Account Name ##########
Total Current Balance: $21,698.39
Account #: xxxx-xxxx-xxxx-1234

As we discussed, Last Resort Financial Services Inc. hereby accepts your offer to pay $10,751.69 to settle the above-referenced account in full.

This offer expires on 05/30/05. Thus, if we receive the settlement amount on or before 05/30/05, and if the funds clear, we will consider the amount to be settled in full and will stop all further collection efforts.

Nothing enclosed within this letter changes or in any way restricts any of your legal rights, including your rights that were included in our first letter to you about this account.

THIS AGENCY IS ENGAGED IN THE COLLECTION OF DEBTS. THIS COMMUNICATION IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.

Sincerely,
Bill Collection
800-926-3114 Ext/ 1234
Account Representative