Letter of Authorization

A Letter of Authorization is a written document that grants permission or authority to a third party to take specific actions or make decisions on behalf of the person or entity signing the letter. In the context of debt collection, a Letter of Authorization may be used to allow a creditor, debt collector, or debt settlement company to communicate with or negotiate with other parties, such as credit reporting agencies, courts, or other creditors, regarding the debtor’s account or settlement agreement. The letter typically includes details about the parties, the scope and duration of the authorization, and any limitations or conditions on the authority granted. The letter may also include a statement that the debtor has voluntarily and knowingly granted the authorization, and that they may revoke or modify the authorization at any time. The purpose of a Letter of Authorization is to facilitate the resolution of the debt and to protect the debtor’s privacy and interests, by ensuring that only authorized parties have access to their information and that any actions taken are consistent with their instructions. The letter should be carefully reviewed and understood by the debtor, and should be signed and dated by them or their legal representative. The letter may be subject to verification or authentication by the third party.