Final Payment Warning Letter

Use this letter when you are ready to send your last payment, and you want to ensure the creditor or collector knows it’s your final payment.

Just marking “Final Payment” or “Paid in Full” on your check may not be legally sufficient enough to relieve you of the debt if the creditor or collector claims the account does not have a zero balance. Rather than risk incurring additional costs, consider sending a letter that informs the creditor or collector that you intend to send a final payment in thirty days. If, after 30 days you do not receive a response, you can assume the creditor or collector agrees with you.

Send your final payment marked paid in full, and if the creditor or collector fails to respond but cashes your payment, you’ll be on the solid ground should they decide to take you to court. Use the free sample final payment warning letter below to compose a letter to inform creditors and collectors of your final payment. CAUTION: Owing $1,000 and sending payment for $10 marked “Paid in Full” will not work, and it’s unethical. Act in “good faith” and send a final payment warning only when you truly believe your next payment will pay off the debt.

You are welcome to copy and paste any of the free sample letters displayed throughout this site. If you’d like an electronic copy of any letter, submit the FREE Request Form 

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Free Sample Letter Final Payment Warning Letter

Today’s Date

Your Name
Home Address
Phone Number

Attention: {name of creditor or collector}
Name of Agency
Agency Address

Account Number: {account or reference number}

Dear Mr. /Ms.

My records show the balance on the above-referenced account to be $_______.  This letter is to inform you that within 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.

Thank you for your cooperation. If there are questions regarding this matter, you can reach me at (insert phone number and area code).



Signature just above the printed name
Your Printed Name

IMPORTANT: Always send final payment warning letters by “official mail – return receipt requested” and keep a copy for your records.