GUIDELINES
- Explain that the payment of so and so amount has been due for some time.
- If applicable, refer to the past correspondence and collection letters sent.
- Ask that the balance be paid immediately and state what will happen if it is not complied with.
- You may want to offer some assistance by offering your contact details to make arrangements if a full payment is not possible within the allotted period of time.
- End on a positive and courteous tone.
SAMPLE LETTER
[Address line]
[State, ZIP Code]
[Letter Date]
[Address line]
[State, ZIP Code]
[Subject: Normally bold, summarizes the intention of the letter] -Optional-
Dear [Recipients Name],
I wish to remind you of your bill which has been due for two months already.
We have sent you several letters which are reminders of your bill and you have yet to respond to them.
We ask that you pay for your outstanding bill of (insert the amount here) on or before December 1, 2008, so that there will be no need for any drastic actions.
We understand that you may be having a difficult time in settling this account, and we wish to inform you that you may contact us at (put in the coordinates here) if you want to arrange for another method of payment that would be easier for you.
We hope to hear from you regarding this matter soon.
Sincerely,
[Senders Name]
[Senders Title] -Optional-
[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -
Collection letter for a medical office. Sample letter.
Further things to consider when writing collection letters to debtors
Collection Letters
Collection letters are written notifications or official messages sent by a creditor, business owner, or company to customers to inform them of a past due balance. Collection letters usually notify the customers of money owed including instructions of how to make a late payment. They may also include warnings for potential penalties due to late payments or non-payments and notifications for possible legal actions in the event the recipient fails to settle his/her account. Collection letters have been used in instances such as reminding students of overdue tuition fee, requesting customers to pay their credit card bills, demanding payment for a sent parcel, and much more.
Collection letters are usually written in a series. The first letter is just a simple reminder and the tone changes to a more direct and demanding one with successive letters. Constantly remind the customer that your payment is due or past due and request him/her to pay you immediately. Use a polite tone to avoid hurting your relationship with the customer. Include the amount of debt the customer must pay and indicate the next deadline. Mention the consequences of late payment and close the letter on a positive note.
Letters to Debtors
Letters to debtors are letters you write to people or institutions that owe you money. Mostly, these are collection letters to inform the recipients of the defaulted payments or demand letters to warn them about eventual legal actions. These letters are usually sent after unsuccessfully trying to get your payment, and it is time to take a more serious action. If you are running a business and you have clients who haven't paid for merchandise or services, your business could suffer financial uncertainty and difficulties. But then, you want to maintain goodwill and not damage the business' s reputation in the community.
When writing letters to debtors, especially those asking for payment, you need to be professional. Start with a friendly letter and if the failure to pay continues, get progressively more serious. Provide important details about the debt - state how much is owed and when the payment should be made. For subsequent letters, use a firm tone but be considerate and professional so as not to ruin the possibility of future deals with the recipient. Recount any conversations that have happened since the first letter. End with a note of anticipation to having the situation resolved.
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