Settlement Offer Letter (Refund Claim)

Settlement Offer Letter (Refund Claim)


This letter should be sent to customers who have made a complaint about the services of a company.

This letter should be sent when an offer is being made to the customer to settle the dispute. The customer does not have to accept this but if they do accept it, that should be the matter over.

The letter stresses that the offer is not an acceptance of liability for the complaint on the part of the supplier/ service provider but is being made for purely commercial reasons.


You should consider the following:

  • What has the communication been between the parties? Emails? Letters? A combination of both? Make reference to these.
  • What is the settlement offer to be? Is it to be a flat sum? A percentage of sums paid? Discount on further purchases or is it to be a combination of these?
  • It may be beneficial to seek legal advice before either offering or accepting a settlement arrangement.
  • You may wish to mark it up as a ‘Without Prejudice’ offer. If you do, you will need to add this because it is not in the letter already.“Without prejudice” may be used by parties who are discussing or corresponding about an existing dispute, whether or not Court proceedings have already been issued. However, it must be noted that a communication can only be “without prejudice” where the following conditions are satisfied:1.     There must be an existing dispute between the parties; and2.     The communication must contain a genuine attempt to settle the dispute.  

    If communications are expressed to be “without prejudice”, provided that they are a genuine attempt to settle, they cannot later be relied upon in Court proceedings if the attempt to settle fails.

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