Sample Goodwill Letter to Remove Paid Collections

Goodwill Letter to Remove Paid Collections

Collection accounts are not very easy to remove from your credit history and, when left there, they can ruin your credit score. Did you know that collections can stay on your report for up to 7 years? This is why you should always try to remove them from your report immediately you find out they are there. Generally, a great way to go about this is to contact the collection agency by sending them a Goodwill Letter to Remove Paid Collections. This letter, which we reviewed in this post, tells the agency that you have paid a collection and would like it removed from your credit report.

What Is a Goodwill Letter to Remove Paid Collections?

A goodwill letter to remove paid collections is a simple document sent to a collection agency asking them to remove a collection account from your credit report. Typically, you send this letter when you realize that a collections account you already paid off appears as a negative entry on your report.

Goodwill Letter to Remove Paid Collections (Word Template)

    Why Is a Goodwill Letter to Remove Paid Collections Important?

    Negative information on your credit report can tank your credit score, which could lower your creditworthiness and eligibility for loans, mortgages, and leases. Additionally, late credit card payments – even those that appear so although you already paid them – can have a significant impact on your financial status. You could face higher rates, insurance premiums, and late fees.

    A goodwill letter is important because it gives you a chance to remove such information from your credit record and raise your score. While it might not always work, many consumers that tried it have been successful in removing paid collections from their reports. It is also worth trying because negative information could remain on your credit report for up to 7 years.

    Goodwill letters to remove paid collections also come in handy when removing atypical information from your report. Some special cases where this is a great mode of recourse include:

    • When you missed a payment due to an emergency
    • When you made a payment, but it failed to transmit
    • When you move, and your bill was sent to your old address.

    Essential Elements

    The purpose of a goodwill letter is to get the creditor to understand your side of the situation and remove negative information from your credit report. It is a civil and courteous way to take responsibility for payments you might have missed and appeal to the credit agency’s goodness. Generally, this letter should contain the following details:

    • The date you wrote the letter.
    • Your personal details, including your name, contact information, and mailing address.
    • An overview of your reason for writing, i.e., to get a paid collection removed from your record.
    • Details about the paid collections, including when you paid it.
    • Reasons why you missed the payment in the first place.
    • A promise not to let it happen again.
    • A straightforward request that they remove the account.
    • Supporting documentation proving you had a valid reason for missing the payments.
    • The date and your signature.

    How to Write

    The best approach when writing a Goodwill Letter to Remove Paid Collections is to be sincere about your situation and personalize the letter. You also need to be polite and appreciative of the recipient’s time for reading your letter and considering your request. Now, let’s review some steps on how to write a convincing goodwill letter.

    • Step 1: Supply the current date (when you wrote the letter). Try and send your letter immediately after you find out about the negative report to emphasize the urgency of the matter.
    • Step 2: Write down your full name, mailing address, and account number. This information will help the reader locate your account faster.
    • Step 3: Briefly explain the source of the error. Get straight to the point and be objective: you don’t want the creditor to pity you; you want them to understand the situation.
    • Step 4: Outline the steps you have taken since you discovered the error to correct it.
    • Step 5: Briefly explain how the information on your credit report is affecting you, e.g., is it lowering your eligibility for a loan?
    • Step 6: Make a goodwill request for the collections to be removed from your record.
    • Step 7: Mention and attach any supporting documents that lend credibility to your story. If you were ill, for example, you can attach a copy of your hospital bill.
    • Step 8: Thank the reader, provide your contact information, and sign off.

    When you finish your letter, send it via email or snail mail to the collection agency or creditor’s customer support department.

    Sample Goodwill Letter to Remove Paid Collections

    22 October 2031

    Madden Collections

    120 Noodin Street

    Austin, TX 78790

    Re: Account Number 980780B

    To Whom It May Concern,

    This is with regard to the referenced account number. In January 2031, a collection for $4,500 was sent to Madden Collections by my mortgage company. I have never had negative information on my report, but, unfortunately, I was unable to pay my mortgage for one month due to an illness that kept me away from work. I have since resumed my job and paid this debt in full.

    I am writing to request that you remove the collections from my record as a gesture of goodwill to enable me to qualify for a loan I am applying for to purchase a home. Your help will make a great difference in my life

    Thank you for your consideration.


    Kate Walloon


    Do goodwill deletion letters work?

    Credit agencies are not obligated to respond to goodwill letters, but most do. Within a few days, they could respond with a call or letter of their own to inform you of their decision.

    Can a goodwill letter remove a charge off?

    Yes. If accepted by the credit agency, a goodwill letter could get a charge removed from your report.

    How do I get a paid collection removed from my credit report?

    The best way to get a paid collection removed from your report is to send a goodwill deletion letter to the credit agency or your lender.


    Having even one missed payment on your credit report could harm your credit score for a very long time. Fortunately, you can send a Goodwill Letter to Remove Paid Collections to your creditor to try and have the information removed. Remember, this is not legal correspondence, and the creditor is not obligated to respond to your request. However, if the error is legitimate, just sending the letter could go a long way in resolving the matter.