Payment Arrangement Agreement Letter
Sometimes, circumstances beyond anyone’s control can change their financial situation. This could be a death in the family, losing a job, or even a natural disaster. Sometimes even smaller events can cause problems. These issues can lead to the non-payment of bills. A payment arrangement agreement letter can help someone in a tough financial situation still pay-off debts, a positive circumstance for both parties.
Format and Content
The payment arrangement agreement letter format must clearly state all the relevant information as it will become a binding contract, the kind that could be used in court. The agreement must include the original debt owed, and payment terms that work for the payee. These arrangements can be for any amount and be paid on any timetable as long as both parties agree. How and when the payments should be made should also be included. This letter is usually written by the company or entity that is owed money and the payee will sign it if they think they can meet the payment terms.
In this payment arrangement agreement letter sample, a collection agency is offering a payment arrangement to a debtor on behalf of another company. This letter includes a simplified agreement, showing the amount to be paid monthly until the bill is fully paid off.
We apologize for the extenuating circumstances that have affected your financial situation. Thank you for taking our call. Please agree to the following payment arrangement that we discussed over the phone to take care of your unpaid balance on behalf of Terra’s Services, LLC.
Current Outstanding Debt: $756.25 for account number #3415; originally due January 31, 2013.
The payee has promised to pay back this total amount in $100 payments monthly. Each payment is due on the 1st of the month. The first payment will be due August 1, 2013. The final payment of $56.25 will be due on March 1, 2014. These payments are acceptable by check or credit card. Please return payment information on the form below. A bill will be sent monthly that must be mailed back to our Collections Department:
c/o Collections Department Act 572-15347
PO Box #20547
Denver, CO 23421
If the payee fails to complete one of these payments, the total amount will be due immediately.
Once paid, Denver Collection agrees to not press any further claim on behalf of Terra’s Services, LLC.
This agreement for payment arrangement is agreed to by both parties and is valid on this date once both parties have signed.
Thank you for your responsiveness in this matter,
Accounts Representative with Denver Collections
I have read and understood this agreement and voluntarily accept the terms.
Denver Collections on Behalf of Terra’s Services, LLC.