Disputed Account Settlement

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date and Reference

Date: {{current_date}}

Reference Number: {{reference_number}}

Debtor Information

Debtor Name: {{debtor_name}}

Debtor Address: {{debtor_address}}

Account Number: {{account_number}}

Creditor Information

Creditor Name: {{creditor_name}}

Creditor Address: {{creditor_address}}

Subject

Settlement Offer for Disputed Account Number {{account_number}}

Background of Dispute

This settlement offer pertains to an outstanding balance of {{original_amount}} ({{original_amount_words}}) on account number {{account_number}}. This account has been subject to dispute by {{debtor_name}} on grounds of {{reason_for_dispute}}. Both parties acknowledge the existence of a dispute regarding the validity and/or amount of the outstanding debt.

Settlement Terms

In full and final settlement of all claims related to the aforementioned disputed account, {{creditor_name}} (the 'Creditor') hereby offers to accept the sum of {{settlement_amount}} ({{settlement_amount_words}}) from {{debtor_name}} (the 'Debtor').

This settlement amount must be paid on or before {{payment_due_date}}. Failure to make payment by this date will render this settlement offer null and void, and the original outstanding balance of {{original_amount}} will remain due and payable.

Conditions of Settlement

Upon receipt of the full settlement amount of {{settlement_amount}} by the stipulated due date, the Creditor agrees to:

1. Consider the account fully settled and closed.

2. Cease all further collection activities regarding this outstanding balance.

3. Report the account as 'Settled in Full' or similar to credit bureaus, if applicable, on or before {{credit_reporting_date}}. The Debtor understands that this may or may not remove the original delinquency from their credit report, but will reflect the settled status.

4. Waive any remaining balance of {{remaining_balance}} that was outstanding after the settlement payment.

Debtor's Acknowledgment

By signing below, the Debtor acknowledges and agrees to the terms and conditions of this settlement offer. The Debtor further agrees that this settlement is a compromise of a disputed claim and is not an admission of liability by either party.

Legal Effect

This agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, of the parties. This agreement shall be governed by and construed in accordance with the laws of South Africa. Any disputes arising out of or in connection with this agreement shall be subject to the exclusive jurisdiction of the courts of South Africa.

Signatures

___________________________ ___________________________

{{debtor_name}} (Debtor) {{creditor_representative_name}} (Creditor Representative)

Date: {{debtor_signature_date}} Date: {{creditor_signature_date}}