Credit Card Settlement Letter Format from Bank and Customer

When the credit card holders do not make payment even after several weeks have passed, the credit card company starts sending them warning notices over emails, letters and phone calls.

Even after several follow-ups and warning notices, if a customer does not pay the money, then the credit card company may offer the customer a final settlement deal to pay a reduced amount by a certain date. The customer should accept the offer; otherwise, the matter may be taken to a court of law.

Sometimes, a customer may on its own offer the credit card company a final settlement deal, wherein he is willing to pay a certain money to settle his dues and close his account.

Here are examples of such a final settlement letter of correspondence between the customer and the credit card company.

TEMPLATE #1

(Letter to customer from credit card bank/company for settlement.)

Ref: _________

Date: ________

To

(Name of the Customer)

(Registered Address)

Mob. _________

Reg.: Non-payment of credit card dues and final settlement.

Dear Mr./Ms. _________,

This is with reference to the outstanding dues pending on your credit card ending (write last four digits). The credit card statements have been sent to your registered email id every month. We have also reminded you of your due payments by email, letter and over phone as well.

However, you have failed to make the payment till date. Hence, we are offering you a last chance for a final settlement on your credit card dues.

Please note that:

i) The outstanding dues as on (Date) including interest is (Amount).

ii) You can pay a final settlement amount to settle all dues for an amount of ________.

iii) This offer is valid until (Date).

Once the final settlement offer period ends, and in case you fail to pay the final settlement money, then we will be bound to proceed with legal actions against you at the appropriate legal forums to recover the full amount including interest.

Sincerely,

    (Signature)

(Name of the Officer)

(Designation)

TEMPLATE #2

(Reply letter from customer to credit card company/bank for settlement.)

Date: _________

To

(Name of the Credit Card Company/ Bank)

________ Branch

(Address)

Sub.: Settlement of credit card dues.

Dear Sir/Madam,

I am in receipt of your letter vide no. _____ dated ______ with an offer for a final settlement of the credit card dues. I accept your offer with thanks. I am willing to pay the final settlement money.

Due to financial hardship, I was unable to pay the dues. I am truly sorry for that. I have not been able to fully recover from my financial troubles yet. However, I have decided to clear off your final settlement money by arranging money from some sources.

Please find enclosed herewith a cheque bearing no. _____ dated _____ for an amount of _______ towards the final settlement amount. I further request you to kindly close my credit card account with you after settling this money.

Sorry for the inconvenience.

Yours faithfully,

    (Signature)

(Name of the Customer)

Mob. _________

Enclosure: As above

TEMPLATE #3

(Letter from customer to credit card company/bank with an offer for final settlement.)

Date: _________

To

The Credit Card Division

(Name of the Bank/ Credit Card Company)

________ Branch

(Address)

Sub.: Settlement of credit card dues.

Dear Sir/Madam,

I am the credit card holder of the card bearing number ____________. I have been receiving warning notices from you regarding outstanding dues on my card.

I would like to bring to your attention that it is my earnest wish to pay the dues to you. However, due to severe financial hardship, I was unable to pay the dues. I apologize for that. I am sorry to say that I do not have the full amount to pay the dues. I have tried a lot to arrange the amount but I have failed.

Hence, I would like to request you to allow me to finally settle the dues on my card for a final payment of an amount of _______. That is the maximum amount I can arrange after a lot of hardship. Kindly confirm this so that I can send the payment by a cheque.

Sorry for the inconvenience.

Sincerely,

    (Signature)

(Name of the Customer)

Mob. _________