Bank finance articles and tips

The letter that you send to your creditor or credit collectors to request for confirmation of the information reflected on the account that they require you to pay is called a debt verification letter. In this letter, the details that are requested for verification generally include the debtor's name and address only. And because of that, I personally do not recommend making use of a debt verification letter alone.

The reason being is that any person who gains access to a phone book or internet can generally search and locate for your name and address. And the other reason is that these letters can neither verify the existence of your debt to your creditor or collections agency nor can it bring your collections agency's harassment to an end....

A goodwill letter -- or as it is sometimes called, a "goodwill adjustment letter" -- is one good, simple solution you can use to make an official, heartfelt request of your creditor to remove a negative listing from your credit report to fix bad credit.

This type of letter differs from a letter to dispute late payments or to dispute billing mistakes. Further, a goodwill letter has a completely different purpose from a credit dispute letter.

A goodwill letter allows you to accept the blame for late payments on credit cards, while appealing to the creditor for financial mercy....

What Is A Standby Letter of Credit?

The Standby Letter of Credit (SBLC) is classified as a "letter of credit" (LC), also called "documentary letter of credit" (DLC). It is a term widely used to secure payments in national and international trade. The document is issued by a financial institution, at the request of the buyer. The buyer also provides instructions for preparing the document.

A standard commercial LC is used principally in international trade finance dealings of substantial value, for trades between a provider in one area and a client in another; which usually provides an irrevocable payment bank undertaking. However, there are other purposes and uses of a DLC.