Creditors do not hesitate to send documentation and call you when they want something from you or have an issue with your delinquent account. These contacts can be intimidating, but you have just as much right to contact them as they do to contact you. In fact, the worst thing you can do is stop contacting your creditor when you're behind on payments. Several types of letters usually cover most of the correspondence needs you may have with creditors.
No Contact Letters
Under debt collection laws in most states, you usually have the right to request that a creditor stop contacting you about your account by phone, but the request must be in writing. In a no-contact letter for a delinquent account, introduce yourself and give basic details about the delinquency and why it is not advantageous for the creditor to continue phone contact. Cite the specific law for your state that guarantees your right to no contact. If the creditor does not comply, send a second letter that indicates you intend to file a complaint against the creditor if it does not cease contact.
Hardship Letter
A hardship letter makes a case that you cannot afford to pay what you owe for specific reasons such as job loss. In this letter, tell the recipient what your balance and monthly payments are. Then explain why paying that amount would place a hardship on you; attach copies of supporting documentation if you can. The next step is to make a request of the creditor, such as a reduction in interest, forbearance until a specific date, acceptance of a lower monthly payment or forgiveness of a portion of what you owe. Close the letter by thanking the creditor for their understanding and inviting them to contact you.
Dispute Letters
People send dispute letters to creditors any time the creditor makes a mistake on their account. Because credit accounts are increasingly automated and may experience technical glitches, and because human error occurs even in non-automated systems, these mistakes are not unusual. In a dispute letter, state that you believe the creditor has erred and that you do not owe some or all of the balance. Then present any information you have that supports the assertion, such as copies of your credit statement and receipts showing you returned merchandise and therefore should have had the purchase amount put back on your credit limit. If the dispute involves an item on your credit report, ask the creditor to remove anything negative that was put on your report because of the mistake. You also may use dispute letters to point out problems with a payment or similar agreement you're trying to make with the creditor.
Considerations
Creditors may have hundreds or even thousands of accounts to handle, and it's easy for a single piece of mail to get lost. For this reason, always send any letter you write to a creditor by certified mail. Sending the letter this way gives you confirmation that the letter was delivered at the address you used, which lets you argue--in court, if necessary--that the creditor received your correspondence. Additionally, always send your letters as soon as possible when you need to make a request or see a problem with your account. This can prevent additional late fees, hits to your credit report and legal problems. It also makes it easier for you to remember details about the issues clearly so you can present a clear case.
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