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This is a formal letter that should include: A summary of the original incident with any factual disputes highlighted. Evidence to support the version of events provided in the Settlement Demand Letter. An outline of any relevant legal standards that apply to the matter. A settlement offer and terms/timeline for acceptance.
In its simplest form, the settlement agreement states that for a specific amount of money paid, the lawsuit is dismissed. In a more complex form, this type of document can stipulate: Payment limits and plans. Confidentiality clauses.
I/We understand that the Bank has introduced ?OTS SCHEME? for recovery of outstanding dues, waiving some part of the interest and other charges in the account. I/We request you to consider my case for One Time Settlement and advise me the rebate I shall get if I arrange to pay the balance outstanding in full.
This means sending a written letter explaining how you wish to settle your debt, how much you are offering to pay and when this can be paid by. Your debt settlement proposal letter must be formal and clearly state your intentions, as well as what you expect from your creditors.
A settlement letter is a written offer from a creditor to settle a debt, and serves as legal documentation of this arrangement. A settlement letter is a legally binding agreement on both you and the creditor, and technically replaces your original contract with them.