The letters
Writing to creditors gives you a record of what you've said and when. Keep copies of everything you send and receive. These templates are general information, not legal advice, so adapt them to your situation.
1
Ask a creditor for breathing space
Use this when you need time to get advice or sort out a budget before making an offer.
[Your name] [Your address] [Date] [Creditor name] [Creditor address] Account number: [number] Dear Sir or Madam, I am writing to let you know that I am in financial difficulty and cannot keep up my payments on this account at the moment. I am getting help to look at my finances and draw up a budget. Please hold all collection activity, interest and charges on this account for 30 days while I do this. I will contact you again with a payment offer. Please contact me in writing at the address above. Yours faithfully, [Your name]
Fill in the parts in [square brackets], keep a copy, and send it by recorded post or email.
2
Offer an affordable payment
Use this once you know what you can afford for each of your non-priority debts.
[Your name] [Your address] [Date] [Creditor name] [Creditor address] Account number: [number] Dear Sir or Madam, I am in financial difficulty and cannot afford the contractual payments on this account. I have prepared a budget of my income and essential spending, which I have enclosed. After paying my essential living costs and priority bills, I can afford to offer £[amount] a month towards this debt, starting on [date]. This is a fair share of what I have available for all my creditors. Please accept this offer and freeze interest and charges so that my payments reduce the balance. Please confirm in writing. Yours faithfully, [Your name]
Fill in the parts in [square brackets], keep a copy, and send it by recorded post or email.
3
Ask for a copy of the credit agreement
For loans and credit cards covered by the Consumer Credit Act 1974. Enclose a £1 fee (postal order or cheque).
[Your name] [Your address] [Date] [Creditor or debt collector name] [Address] Account number: [number] Dear Sir or Madam, Please send me a copy of the credit agreement for the above account, together with a statement of account, under section 77 or 78 of the Consumer Credit Act 1974 (whichever applies). I enclose the £1 fee. Please note that while you are unable to provide these documents, you should not take steps to enforce the agreement. Yours faithfully, [Your name]
Fill in the parts in [square brackets], keep a copy, and send it by recorded post or email.
4
Tell a collector a debt is statute barred
For England, Wales and Northern Ireland. Only use this if you have made no payment and given no written acknowledgement for at least six years, and there is no County Court Judgment.
[Your name] [Your address] [Date] [Creditor or debt collector name] [Address] Reference: [number] Dear Sir or Madam, You have contacted me about the above account. I believe this debt is statute barred under the Limitation Act 1980. No payment has been made and I have not acknowledged the debt in writing for more than six years, and no court action has been taken. This letter is not an acknowledgement that I owe the debt. Please confirm that you will close your file and stop contacting me about it. Yours faithfully, [Your name]
Fill in the parts in [square brackets], keep a copy, and send it by recorded post or email.
5
Ask your council for a council tax payment plan
Use this as early as possible, even if you have already had a reminder or summons.
[Your name] [Your address] [Date] [Council name] Council Tax Department [Council address] Council tax account number: [number] Dear Sir or Madam, I have fallen behind with my council tax because [brief reason, for example a drop in income]. I want to clear the arrears and keep up with my current year's bill. I have prepared a budget, which I have enclosed. I can afford to pay £[amount] a month towards the arrears on top of my ongoing instalments. Please agree to this arrangement and hold any further recovery action. Please also check whether I am entitled to any discounts or Council Tax Reduction. Yours faithfully, [Your name]
Fill in the parts in [square brackets], keep a copy, and send it by recorded post or email.
6
Complain about how you've been treated
For when a lender or debt collector has treated you unfairly. If you're unhappy with their reply after 8 weeks, you can go to the Financial Ombudsman Service for free.
[Your name] [Your address] [Date] [Firm name] Complaints Department [Address] Account number: [number] Dear Sir or Madam, I wish to make a formal complaint about [what happened, with dates]. I am unhappy because [explain how this has affected you]. To put things right, I would like you to [what you want, for example stop contacting me by phone, refund charges, agree an affordable plan]. Please send me your final response within eight weeks. I understand I can refer my complaint to the Financial Ombudsman Service if I am not satisfied. Yours faithfully, [Your name]
Fill in the parts in [square brackets], keep a copy, and send it by recorded post or email.
Free debt advice is available
A free, impartial debt adviser can write to creditors for you. Find one through MoneyHelper's debt advice locator.