GUIDELINES
- This is a more demanding form of a debt collection letter.
- State that the balance has long been overdue and how much it is.
- Indicate that the balance should be paid immediately or you can offer an alternative settlement if you want as well.
- Indicate that this is the final notice and that if not complied with, legal actions shall have to be takenby the collection agency.
- End in a courteous manner.
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],
We have repeatedly reminded you of your current outstanding balance of $ 5,928 which has yet to be paid since its original due date of October 1, 2009, which is five months ago.
We have sent you letters, some of which offering to make an arrangement for the payment to be less of a burden on your part. However, you have ignored them all.
We regret to inform you that because of this, we may have not choice but to resort to enlisting the services of the court to help us collect your dues. While this is not what we want to do, we may find that it is necessary. To avoid this, please pay your outstanding balance by the end of the week.
Sincerely,
[Senders Name]
[Senders Title] -Optional-
[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -
Collection letter of final notice. 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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