Collection letter for payment to avoid credit reporting agency intervention

GUIDELINES

  1. This is the third letter to collect the payment. It need not be informal anymore. You would no longer assume that the customer has overlooked the payment schedule. So you could choose to be more persuasive and forceful compared to previous letters. You could convey that non-payment would lead to bad credit rating. It may impart a greater sense of urgency.
  2. Tell the customer that there was no response to the two of your earlier letters.
  3. Mention that failing to pay in time would take the credit standing to a state of jeopardy.
  4. Mention that you are still confident that the payment would be remitted soon.
  5. Demand an immediate response.

SAMPLE LETTER

[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-


Dear [Recipients Name],

Your account balance shown in our books is $58 outstanding and past due date. And a late fee of $15 will have to be added to it and appear on the next statement sent to you. You are requested to check your books to make sure there are not any discrepancies in our books.

As per the requirement of State law, our organization has to make you aware that a weak credit record might be given to the credit reporting agency to deal with if the credit responsibilities are not addressed.

This reminder is to be ignored if the payment has already been sent. We appreciate your taking out time for this matter

Sincerely,

[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -

Collection letter for payment to avoid credit reporting agency intervention.

Further things to consider when writing collection letters to debtors

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.

These articles may interest you

These articles may interest you