Dear {Name},
I'm so sorry for losing your {item}. It was generous of you to loan it to me in the first place, and I feel terrible that I misplaced it. I will, of course, replace it as soon as possible, although I know that doesn't make up for being so careless with your valuables.
I understand if you don't particularly want to loan me anything in the future, but I promise to treat your property with more respect if given the chance.
{Name}
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Index of letter of apology templates
