Credit Card Debt Forgiveness Letter Template for Australia

A Credit Card Debt Forgiveness Letter is utilized when a financial institution agrees to forgive all or part of a credit card holder's outstanding debt, typically due to financial hardship or as part of a negotiated settlement. This document, governed by Australian consumer credit laws, establishes the legal framework for debt forgiveness and protects both parties' interests. It includes essential details such as the parties involved, the original debt amount, the portion being forgiven, any conditions for forgiveness, and relevant tax implications. The letter must comply with the National Consumer Credit Protection Act 2009 and related regulations, ensuring proper documentation of the agreement and its terms. This document is particularly relevant in situations of demonstrated financial hardship, long-term payment defaults, or when the financial institution determines that partial debt forgiveness is more beneficial than pursuing full payment through legal means.

1. Sender Details: Full name, address, and contact information of the creditor/financial institution

2. Date: Current date of the letter

3. Recipient Details: Full name and address of the debtor

4. Reference Information: Credit card account number, customer reference number, and any other relevant identifiers

5. Debt Acknowledgment: Clear statement of the original debt amount, current balance, and any accrued interest or fees

6. Forgiveness Terms: Explicit statement of the amount being forgiven and any remaining balance

7. Conditions: Any specific conditions that must be met for the debt forgiveness to take effect

8. Tax Implications: Statement regarding potential tax implications of the debt forgiveness

9. Closing Statement: Final confirmation of the agreement and contact information for any questions

10. Signature Block: Space for authorized representative's signature and title