Letter of Explanation

A Letter of Explanation is a written communication from a debtor to a creditor or debt collector, providing additional context or clarification about a specific aspect of their account or financial situation. The letter may be requested by the creditor or collector in response to an unusual or suspicious transaction, a discrepancy in the debtor’s information, or a change in the debtor’s circumstances that may affect their ability to pay. The letter typically includes a detailed and honest description of the situation, along with any relevant facts, dates, and amounts. The letter may also include supporting documentation, such as receipts, statements, or letters from third parties. The purpose of a Letter of Explanation is to help the creditor or collector understand the debtor’s perspective and to provide a basis for further communication and resolution. The letter can also serve as a record of the debtor’s good faith efforts to address the issue and to prevent misunderstandings or disputes. The letter should be written in a clear, concise, and professional tone, and should be submitted in a timely manner.