1. Be polite in announcing customer's??s credit withdrawal. Explain the reason for doing so. Say that it may need the customer to pay cash for further business going forward.
  2. Mention the details of the payment amount and due date to the customer.
  3. Tell the customer about the cancellation of the credit amount.
  4. Suggest an alternative to the customer for paying the amount. Also mention that you wish to continue business with that customer.
  5. Show gratitude for the previous business endowment.
  6. Wish the customer luck for the future endeavors.


[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],

We regret to tell you that your account with Max International has been shut down. This action is because you have consistently missed your payments. In 2002, your payments from January to April were all late for 20 days, and you did not pay entirely in the next few months.

Maybe this delay is caused by your financial problems. As you are an old customer, we wish to resolve this issue with you face to face. Please call someone at the customer service at 111-222-111 and talk to Jill Mary and arrange a schedule for payment.

We wish to continue working with you and hope to maintain a healthy relationship once this issue is resolved. We appreciate your doing business with us and hope we can continue doing so in the future.


[Senders Name]
[Senders Title] -Optional-

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

Sample letter to cancel a credit account due to non-payment.

Further things to consider when writing cancellation letters to debtors

Further things to consider when writing cancellation letters to debtors

Cancellation Letters

Cancellation letters are letters you write to a service provider, company or institution, informing them that you are dissatisfied with their product, service, or membership and that you wish to discontinue it. Cancellation letters can be written for several things such as canceling an insurance policy, a cable service, rental agreement, a magazine subscription, a bank account, order, credit, etc. The reason why people issue cancellation letters is mainly due to unsatisfactory or poor performance, not meeting the expectations, and at times unavailability of funds.

Cancellation letters are written in a clear and a concise manner. Go straight to the point and suggest actions you expect to be taken. Clearly state what you are canceling and explain you reason for it. Where necessary, include the details of what you are canceling, for example, account details. Mention that you wish to receive confirmation that the cancellation was effected. State clear steps that you would take if cancellation is not put into effect within the specified notice period. End the letter on a positive tone and request the reader to acknowledge receipt. Send the letter well in advance to give enough notice to the reader.

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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