In most cases, the Hardship Letter is sent only to Original Creditors that have not been sent to a Collection Firm. An Original Creditor is the bank or financial institution that originated the loan or credit card. For accounts that are currently being managed by a Collection Firm or Law Office, there is no need to send a Hardship Letter to the Collection Firm or even the Original Creditor at this point. If you have an account with a third party Collection Firm or Law Office, UGotiate will guide you to send a different letter to the Firm or Law Office called Validation of Debt Letter.
In some cases it may be helpful to send a Hardship Letter later on to a collection firm or law office. This happens most at the time when you are trying to negotiate a settlement. A collector may need to document your specific hardship in order to accept a certain settlement percentage. Should that be the case, UGotiate will guide you in creating a Hardship Letter on a case by case basis.
Remember, as long as you keep your accounts updated in UGotiate with the current creditor information, UGotiate will guide you in what letters should be sent.