How to Write an Application Letter for a Fee Reduction

While it may seem intimidating at first, writing a letter asking for a reduction in fees can save you serious money. With a few personal details and a well-written letter, you can reduce bank fees, waive application costs and even lower loan rates.

If you just made a human error in your financial planning, you're experiencing extreme financial stress, or your credit score has recently gone up, it may be worth the effort. However, you should ensure that your request letter for fee reduction has the right information and tone.

Do Your Research

Before you ask an organization to reduce their fees, make sure that you send your information to the right people. Otherwise, your letter could end up in paperwork limbo while you continue to make high payments. Do a little digging around the institution's website to see who to contact.

If that does not turn up the right information, don't be afraid to call. Speak to an operator and find out who should receive your request. It's better to do the legwork now than pay for it later.

While you research, find out what kinds of information you need to include in your request. Many institutions have specific forms they require consumers to complete in addition to the letter.

Write a Sincere and Thorough Letter

Remember that there is a person, not just a large institution, on the other end of the letter. Customer service professionals want to help, especially when they come across people who treat them like human beings. Balance your personal plea with a professional tone and your letter can make an impact.

Your letter should include all of the relevant information, even if the attached form has some of it as well. Be sure to include your:

  • Name 
  • Account Number
  • Request
  • History with the Company
  • Reason for Request
  • Thanks
  • Contact Information

You may wish to add other details, depending on the reason for the letter. For example, someone who needs a payment reduction after losing a job may want to include their plans for gaining employment.

Sample Letter: Request to Reduce Interest Rate

Dear [COMPANY] Representative,

I hope this letter finds you well. My name is [FULL NAME], and I am writing about my account [ACCOUNT NUMBER]. While my current interest rate is [RATE}, I want to request a reduction formally.

After [X] years with your company, I have become a loyal customer. Furthermore, my credit score has significantly improved since I first obtained this loan. I hope this means that your company will see my creditworthiness and reduce my fees accordingly.

I have attached the required documents for your convenience. Please let me know if you need anything else from me to continue this process. I hope to hear from you soon and resolve this matter.

With thanks,






About the Author

Mackenzie Maxwell is a small business owner. She has two businesses, including a martial arts gym in Texas. Prior to building her own, Mackenzie worked with small businesses and organizations to create effective marketing - from churches to insurance companies. She enjoys helping businesses with the startup spirit grow. Mackenzie has been writing in this field for six years and shows no signs of slowing.