Medical Collection Account: How to Write a Letter of Explanation for Credit Bureau

Have you found yourself in a situation where you need to explain the circumstances of an account that's in collections, but it's not medical-related? At BizzLibrary.com, we understand that these situations can be stressful and challenging. Our Letter of Explanation template can help you explain your situation and potentially help you resolve the account issues.

What is a Letter of Explanation?

A Letter of Explanation is a written document that provides additional context about a particular situation or event that may be impacting an individual's creditworthiness. It's often used in cases where a consumer has an account in collections, such as credit card debt or a loan, but the reason for the account being in collections is not medical-related.

Why Do You Need a Letter of Explanation?

If you're dealing with an account in collections, providing a Letter of Explanation can help you in several ways:

1. Explain Your Situation: A Letter of Explanation gives you the opportunity to provide context about your situation. You can explain any extenuating circumstances that led to the account going into collections, such as job loss or an unexpected medical expense.
2. Credit Repair: A Letter of Explanation can potentially help repair your credit by demonstrating that you're taking steps to address the issue. If the creditor or collections agency sees that you're making an effort to resolve the account, they may be willing to work with you on settling the debt and removing the account from your credit report.
3. Personal Record: Even if a Letter of Explanation doesn't immediately resolve the collections issue, it can still be a valuable document to have in your personal record. It provides a written account of the circumstances that led to the account going into collections, making it easier to reference in the future if needed.

Download Our Letter of Explanation Template

If you're dealing with an account in collections that's not medical-related, BizzLibrary.com has a Letter of Explanation template that can help you provide context and potentially resolve the issue. Our professionally drafted document is available for download in DOCX format, making it quick and easy to customize and print.

Visit BizzLibrary.com now to access a wide range of business document templates, including sales agreements, legal contracts, and more. Download our Letter of Explanation template today and take control of your financial future!