Friday, December 8, 2006

Sample Proforma Letter & Documents


Dear {Citibank, HSBC, etc.)
{Atty. Molaer, or other lawyers)

Thank you for sending me that demand letter. I wish however to clarify certain things, hence, this reply.

Much as I wanted to fully settle my obligation with you, I cannot do so considering:
----( choose the appropriate situation )---
1. I have yet to receive the Updated Statement of Account I requested from you last {DATE}, showing the breakdown of how much do I owe you, the applicable interest and/or penalty rates and the covering periods, and other miscellaneous charges, if any.

Once received, I will review it and propose soonest a repayment program based on my current and projected cash flow for your consideration and approval.

2. Your demand to pay you in full such huge amount immediately, given the short notice, is quite unreasonable, arbitrary and impossible to achieve. I am therefore requesting reconsideration from you for a more practical repayment program in close proximity with my current cash flow and which would be beneficial to both of us.

3. Your required regular repayment is beyond my monthly net disposable income, after deducting modest cost of living expenses, and does not even consider my existing cash flows, basic to credit and financial management practices. Acceding now to your proposal will merely result in another default on my part of which I am truly trying to avoid.

4. The amount quoted represents charges made against my stolen card which were duly reported to you within the reasonable time allowable and has already been the subject of our mutual communications latest of which was on {DATE} for which you (state action taken by them if any)

5. Others (impossible demands, inactions of your requests, etc.)

Needless to say, should nothing progress from hereon, perhaps, I will just look forward to the court for a more judicious arrangement, repayment or settlement.

Respectfully yours,

Your name

( summary)

This Agreement is entered into by and between:
CC ( Creditor)
You( borrower)

1.BORROWER acknowledges indebtedness to CREDITOR in the
amountof P xxxxx
2.BOTH PARTIES hereby agree that the account shall be
restructured under the following terms and conditions :
a. Amount : P xxxx
b. Interest : ___% p.m.
c. Repayment: ___ months at P____/month inclusive of
3. Events of Default
4. Remedies
- plus 5% p.m. penalty
- etc.

signature/authorized signatory

Next.. Am tired of your threats.. Go on SUE ME!!!

Go ahead, SUE ME!!!

Dear Creditor,

Thank you for sending me a demand letter …..
Translation: See? You can still contact me. Therefore I am not hiding from you.

Much as I wanted to settle my obligation….
Translation: I have no intention to defraud you. Hence, no applicable criminal case under RA8484 nor possible preliminary attachments under Rule 57 of the Rules of Court

Sue Me In Court? Consider the following first:

1. You have no authority from the bank to sue me in their favor;
2. My account is quite minimal versus your additional expenses;
3. The judge does not want to be your collection agent (only clogs court cases)
4. Court will just refer the case for mediation/conciliation
5. Case will take long, so, no immediate Christmas bonus for you!
6. The decision will be in your favor but amount is diminished.
7. The debtor will also ask: “Do I have money to pay you?”
8. If you cannot collect money, does your debtor have properties you can attach?

Remember Family Code:

Art. 155. The family home shall be exempt from execution, forced sale or attachment

9. What else can you do? NOTHING, thus you just go back to :

“Making a compromise repayment arrangement that is practical and easy to meet by me –which was what I have been requesting all along in the first place!” Tsk….tsk…tsk… what a waste of time and efforts, and all because of greed?”

Next… The Call