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Payment Refusal Letter

You’ve been paying a debt collector right along when he suddenly demands higher payments or the entire balance. You’re not sure what to do and wonder if his demand is even legal? This “bait and switch” may be illegal debt collection tactics under the Fair Debt Collection Practices Act.The debt collector may just be liable to you for statutory damages of up to $1,000, plus any actual damages suffered, plus attorney fees! Submit your information to a FREE* Fair Debt Lawyer by clicking here for a FREE* Fair Debt Case Review or calling toll free 888-595-9111 to connect with a FREE* Fair Debt Lawyer.

Payment Refusal Letter

When debt collectors or collection agencies refuse to accept your regular payment and demand a higher amount or the entire balance, you should send a letter explaining your situation; that is you want to continue to paying but cannot afford the amount they are demanding therefore, because THEY REFUSE to accept your regular payments, you have no choice but to terminate the relationship.

Feel free to copy and paste the letter below into your word processor.

Download PDF Here

Payment Refusal and Termination Sample Letter

Today’s Date

Your Name
Your Address

Attention: {name of collector}
Name of Debt Collection Agency

RE: Your {letter dated} or {phone call on date} reference account #: {place account or reference number here}

Dear Mr./Ms. {Collector’s Name}

I have paid on this account per our payment agreement dated (insert date of verbal or written agreement). My records indicate that I have made (insert number) payments in the amount(s) of $(insert amount(s) for a total of $(insert total) leaving a balance of $(insert balance).

Although I certainly want to continue paying on this debt, I simply cannot afford to pay the new, higher amount you are demanding. Unless you agree to continue accepting my regular payment amount, then per your communication informing me that you refuse to accept my payments, you leave me no choice but to terminate this relationship.

For the record, do not contact me by phone on any number ever again regarding this account. You may, however, contact me in writing to inform me that you will accept my previous payment amount or that you intend to take other actions as outlined in the Fair Debt Collection Practice Act.

Should you decide to take legal action to enforce this debt, be advised that I welcome the opportunity to show any judge my efforts to resolve this issue. I have kept extremely accurate records of all correspondence and payments concerning this account and have complete confidence that any judge would agree that my efforts have been in good faith.

Signature here
Your Printed Name

Send the letter above using these dispute debt collection mailing instructions.

To dispute an invalid debt use this disputing debt sample letter

If you’ve fallen behind on your bills, especially credit cards, don’t panic. You may have several good options available to you. Your success starts by assessing your current situation and finding Attorneys For Consumers licensed in your state.

How Debt Settlement Works:

– Lower your interest rate!
– Save hundreds a month and thousands off your total debt!
– No more dealing with creditors, let an attorney do that for you!

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confidential informationThere may be instances where discussing your situation over a public forum could potentially compromise your interests. On these occasions we will contact you directly via email in order to answer your inquiry in a confidential manner.

One comment

  1. Roxanna Starkey

    I hired a divorce Attorney back approximately 2009. He wrongly billed me several times by duplicating monthly bills, not giving me credit for my payments, and over billing me for time that was not accurate. When I found out he was receiving payments from my ex and not handing me over my money, he said it was money due to him, I had to threaten him with turning him over the state bar. He immediately wrote me a check for what he said he had received, but I have no idea what he actually received. I decided to turn him over to the state bar anyways when I found out he was already under investigation for the same thing and pending disbarment. They said they would hold on to my case, if the pending case was dismissed, they would push forward with mine and push for disbarment. Well he was disbarred. But in the mean time he started sending me letters demanding full payment and letting me know that he also put another $4-5 grand on my case, plus he was going to start nailing me with the highest interest he could and if he could nail me with 30 percent, he would. He also started having loan companies contact me saying that they were referred by my attorney that I was in need of a loan to pay him off. He also started sending me business cards of Loan companies and had the nerve to suggest I might want to consider bankruptcy and he would be glad to do it for me. I continue to pay him on a monthly basis and so far he has refused to cash 3 checks so they returned to my bank. I have printed the notifications from my bank. One from last year and from the beginning of this year. but all the other checks he has cashed and he continues to tack on interest and not credit me for the amounts I have paid. What can I do at this point?

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