Sample letter

Full and final settlement offer (joint names)

Use this letter to help you negotiate a full and final settlement offer with a creditor. This is a type of offer where you ask the creditor to accept part of the amount you owe and write off the rest.


24 November 2020

Dear Sir/Madam

Without prejudice

Account No:

We write with reference to the money which you are claiming on the above account.

We can confirm that we are unable to pay the money which we owe in full.

However, we can raise £ and we want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released from any liability.

We also request that, if accepted, you make an entry our credit reference agency files relating to the above account as having been paid and the account closed.

Payment can be made within of receiving your written agreement of this offer and method of payment.

We look forward to hearing from you.

Yours faithfully