What Is A Goodwill Letter? + Template
What Is A Goodwill Letter?
A goodwill letter, commonly known as a goodwill adjustment letter, is a particular kind of letter you may send to a lender or creditor asking that an amount owing be removed or a bad record on the credit report. Usually issued to appeal to the business to remove a payment seen on your credit report, to pardon over-limit or overdraft penalties applied on your account, or interest charges, goodwill letters are
The reason for a goodwill letter is to persuade the creditor that you are a good customer who intends to pay what is owed but was wrong or had some special circumstances that put you in a bad financial position that made you delay payment or incur some fees. By demonstrating that you are otherwise a good customer and want to maintain the business relationship, one expects the company to be sympathetic and grant the particular request.
When To Write A Goodwill Letter?
Goodwill letters work best when the following conditions apply.
- You have an otherwise favorable credit history with the creditor or lender before and/or after the negative item was reported. For example, you might have paid your credit card bill one month late because of some medical expenses, while you have been paying it on time for several years before and after.
- The fee or negative credit information was due to some circumstances that are not likely to be repeated in the future, not due to poor financial management. Such expenses could include; medical bills, loss of job, or any other emergencies that may require the use of money within the family.
- Some documents can support the assertions made as to what led to the financial difficulty.
- Your letter is friendly, you do not blame anyone, instead, you are responsible for what has happened and just ask for assistance on how things can be corrected.
This usually applies when you have no prior dealings with the company, if you have had several late payments over time, or if you have no evidence to substantiate your claims, then the goodwill letter will not be effective. However, it rarely harms to attempt it.
How to Write a Goodwill Letter?
Here are some tips for writing an effective goodwill letter.
- Ensure that the letter is directed to a particular individual. Attempt to locate the name of an individual who is a manager or any other high-ranking employee in the department, which oversees consumer credit accounts. This can be seen as you have made a little effort to guide your request properly.
- Begin by giving your information at the beginning of the letter. Include your name, your full postal address, your telephone number, and your account number. Now you may spend a few words about your background, for instance, that you are the holder of a credit card and have been using the services of the company for 7 years.
- Present the facts succinctly and without unnecessary details. State precisely the type of negative credit data that you would like to have deleted or the specific financial obligation that you are requesting to be erased dates, and amounts included. Be careful not to state that you were at fault or say something like “I have missed the minimum payment because I was irresponsible” but rather use an explanation like “I was unable to pay the minimum amount because I had to take my family member to the hospital”.
- Produce evidence which can substantiate the claims about the circumstances. This could include medical bills, a letter from your employer informing you that you have been laid off, etc.
- Accept that the situation happened and reassure that it is not a common scenario. Inform the reader this was a one-time experience that would not be repeated in the future.
- Cautiously ask the creditor to delete the information from your credit report or, if there are some outstanding fees or interest charges, kindly ask to erase the balance as a nice gesture. Remember, you are asking them to deviate from the standard procedure and leave it to fate and chance.
- Conclude the letter by expressing gratitude to the reader for their time and consideration. Say that you would like to have a professional working relationship with them in the future.
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Goodwill Letter Template
Use this goodwill letter template as a model to write your letter requesting the removal of negative information from your credit history.
[Your name] [Your mailing address] [City, state, zip] [Phone number] [Email address]
[Date]
[Name of company manager] [Position/Department] [Company name] [Company mailing address]
Dear [Mr. /Ms. Manager’s last name],
Dear Sir/Madam, I am writing in connection with my account number #[xxxx], and I have been a customer of your esteemed organization since [year]. I kindly request the goodwill deletion of the [late payment/NSF payment/over-limit fee] of [$x] on [mm/dd/yyyy] from my credit report with your company.
[Explain why you had to experience the financial difficulties that made you fail to pay your bill or be charged a certain fee. Offer proof such as a medical bill or a letter of layoff mentioning that it was unusual for you to be in such a situation. ]
I usually pay all my credit balances on time and my credit record is excellent until things happened to cause this event. I appreciate the business we have with [company name] and I want to assure you that a mistake like this will not be repeated. I have attached supporting papers to this letter to explain the peculiar circumstances.
I kindly ask you to make a one-off gesture of goodwill and delete the negative item from my credit history so that I can maintain a good relationship with you in the future. I appreciate your time and help with this issue. If there is anything else you would like me to provide, kindly contact me via the phone number or the email address provided below. Kind regards, I am looking forward to hearing from you soon.
Best regards, [Your name and signature]