Letter of Authorization for Payment

A Letter of Authorization for Payment is a written document provided by a debtor to a creditor or debt collector, granting permission for the automatic withdrawal of funds from the debtor’s bank account or credit card to pay an outstanding debt. The letter typically includes details about the debtor’s account information, the amount and frequency of the payments, and any expiration date or cancellation terms. The letter may also include a statement of the debtor’s consent to the payment arrangement and their right to revoke the authorization at any time. The purpose of a Letter of Authorization for Payment is to facilitate the timely and convenient payment of the debt, to avoid missed or late payments, and to reduce the administrative burden on the creditor or debt collector. The letter should be signed and dated by the debtor and may be subject to verification or authentication by the financial institution.