Payment Refusal and Termination Letter

Use this letter when you have been making regular payments to a collection agency or particular debt collector, but now he or she refuses to accept your payment amount and demands an amount higher than you can afford!

Send this letter to warn the collection agency or debt collector that because he or she refuses to accept your payment based on a previous agreement, you have no choice but to terminate the relationship. Use the free sample Payment Refusal and Termination letter below to compose your letter.

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FREE Sample Letter Payment Refusal and Termination Letter

Today’s Date

Your Name
Your Address

Attention: {name of collector}
Name of Debt Collection Agency

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

Dear Mr. /Ms. {Collector’s Name}

I have paid on this account per our payment agreement dated (insert date of a verbal or written agreement).  My records indicate that I have made (insert number) payments in the amount(s) of $(insert amount(s) for a total of $(insert total) in payments leaving a balance of $(insert balance).

Although I certainly want to continue paying on this debt, I cannot afford to pay the amount you are demanding, so, per your (phone call or letter) informing me that you refuse to accept my payments, you leave me no choice but to terminate our relationship.

For the record, do not contact me again regarding this account unless it is to inform me that my previous payment offer is acceptable or that you intend to take other actions as outlined in the Fair Debt Collection Practice Act.

Should you decide that some type of legal action is necessary, be advised that I welcome the opportunity to show any judge my efforts to resolve this issue.  I have kept extremely accurate records of all correspondence and payments, and therefore, have complete confidence that any judge would agree that my efforts have been in good faith.

Signature here
Your Printed Name

IMPORTANT: Always send Payment Refusal and Termination letters by “official mail – return receipt requested” and keep a copy for your records.