Financial Rights Legal Centre
Call the National Debt Helpline
on 1800 007 007.
Offer of settlement – where you agree you owe all or part of a debt

Instructions to user:

Step 1: Consider your offer

This letter is intended to settle a dispute where you agree you owe at least some money or have had legal advice that suggests you will have to pay at least some of the money claimed.

  • If you are not sure about whether you owe the debt, get legal advice.
  • It is important that the offer you are making to settle covers the entire dispute. The terms of an offer vary depending on the circumstances. It is strongly recommended that you seek legal advice on the terms of the offer.

Step 2: Find correct address for other party

You will need to look at correspondence from the debt collector (or lender or their solicitors) to find out where to send this letter.

  • If the debt was originally a consumer credit debt (such as a credit card or personal loan) you should send this request to the internal dispute resolution (IDR) contact of the debt collector (or lender).
  • You can get these details from the Australian Financial Complaints Authority (AFCA) ‘find a financial firm’ web page
  • Your debt collector (or your lender if they are chasing their own debt) will usually be required to be a member of this scheme by law if they are collecting a consumer credit debt.
  • If you cannot find the lender or the debt collector in the above search, call AFCA on 1800 931 678 and ask for the IDR contact details of the relevant organisation.

Step 2: Complete the questions below

  • Answer the questions below to customise your letter.
  • Once you have completed the questions click the Preview Letter button below. The letter generator will prompt you if there is missing information.
  • If you realise you need to change your answers, use the Click here to change your selections feature, above or below the previewed letter.  Do NOT use the back arrows on the address bar or you will need to start all over again.

Step 3: Copy & Paste the letter into your Email or Word program, and send it!

  • You will need to copy & paste the generated letter into your email or into a Word document in order to send the letter to the other party.
  • Once you have pasted the generated letter into your own email or Word program you can make additional changes to the main text of the letter, however we do not advise deleting any of the legal content that has been automatically generated.
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Last updated: October 2018.