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Debt Settlement Letter By Collection Agency
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Debt Settlement Letter to Penn Credit*

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Unexpected life events can turn stable personal finances into a chaotic dilemma that requires desperate measures to get under control. Mounting bills from banks and credit card companies make it impossible to tread bumpy financial waters.

Eventually, one or more creditors come after you by contracting with a debt collection agency to get back all the money from a personal loan or a revolving credit card account. Is it time to declare bankruptcy to get creditors off your back?

The answer is no, and there is way to pay back creditors and retain solid financial footing.

Proposing a debt settlement to a third party debt collector such as Penn Credit makes sense if the bill collector accepts the terms you propose. You have to consider your proposed debt settlement terms carefully to decide whether you can afford a lump sum payment or several payments spread out over several months.

However you handle a debt settlement, you do not have to worry about all the late payments negatively impacting your credit score. The formerly outstanding debt is considered taken care of and the account is closed as “paid in full.”

Why Hiring a Lawyer is a Good Idea

You can write a debt settlement letter to Penn Credit, but you run the risk of making one or more mistakes that can put a debt settlement deal in jeopardy.

By hiring a consumer protection lawyer, you send Penn Credit a debt settlement letter that does not contain any emotionally charged language like accusing the third party debt collector of fraud or other criminal behavior.

Your attorney will clearly propose a debt settlement amount and a timeline for paying back the new credit card or personal loan account balance.

Another way a consumer protection attorney will help you is by holding Penn Credit accountable for following every provision written into the Fair Debt Collection Practices Act (FDCPA). Here are a few violations of the FDCPA that give consumers the right to sue debt collection agencies:

  • Issuing threats
  • Using deception to force payment
  • Calling between 9pm and 8am
  • Failure to abide by a cease and desist order
  • Reporting inaccurate information to the three major credit reporting agencies

Debt Settlement Letter to Penn Credit*

Actual Sample Letter to Send Penn Credit

The key to writing a compelling debt settlement letter is to be concise and on point, as is the case with the following debt settlement letter.


Debt collection agency contact information

Account name and number

To whom it may concern:

I am responding to a letter your debt collection agency sent me asking that I pay the entire amount of the $7,200 balance I owe on a Discover account. I have attached a copy of the letter for you to review. Since I cannot pay the entire amount, I am proposing a debt settlement of 50% of the entire balance.

If you agree to the debt settlement amount, I propose sending your debt collection agency a check for $300 a month over the next 12 months to pay off the new $3,600 balance.

If you agree to the proposed debt settlement terms presented by my FDCPA attorney, please sign and date the bottom of this letter to confirm your acceptance.


Your name


You can expect Penn Credit to use a team of highly skilled lawyers to negotiate a debt settlement that optimizes the third party debt collector’s financial return. Make sure you have just as much legal clout behind you by speaking with an experienced FDCPA lawyer today.

Additional Resources

*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Penn Credit or any other third-party collection agency, you may not be entitled to any compensation.

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