Definition
A collection letter is a professional document written by a creditor, be it a company or a business owner, to a debtor notifying them of the money they owe the sender of the letter and in most cases, giving them instructions on how to contact the creditor and make the late remittance.
Tone
The collection agent should write the letter in a tone that is both firm and considerate, reminding the customer of the amount that is past due and that the business would appreciate a swift payment. For example, a collection letter for a debt that is 30 days past due might start out by stating, "We have yet to receive payment and would encourage you to send it as soon as possible in order to maintain your credit privileges."
Content
The content of any business collection letter usually states the nature of the complaint and the steps that the recipient needs to take to resolve it. For example, a letter for a debt that is 60 days past due might state: "We still have not received payment for Invoice #19 dated January 2, 2012. On March 2nd, we sent a past due reminder but have not heard back from you. Please contact our office as soon as possible to arrange payment."
Consequences
Business collection letters that are final notices will typically inform the customer that his debt will be referred to a collection agency after a certain date. In some circumstances, a final notice may also state that the company will file legal action or repossess unpaid property. Final notices usually occur with debt that is 90 days or more past due. For example, a final collection letter for payment on furniture might state, "Unless payment in full is received within two weeks from the date of this letter, we will be forced to repossess the property."
Payment Negotiation
A business collection letter that attempts to preserve the well-being of the relationship between the merchant and the customer may offer a revised payment plan. For example, a company may offer partial payments to a customer who is past due by 30 days. The collection letter could state, "We recognize that you may be experiencing financial hardship. Please contact us as soon as possible to set up an alternate payment agreement."
(SAME DATA)
Collection Letter 5
______________________________
______________________________
A collection letter is a professional document written by a creditor, be it a company or a business owner, to a debtor notifying them of the money they owe the sender of the letter and in most cases, giving them instructions on how to contact the creditor and make the late remittance.
Tone
The collection agent should write the letter in a tone that is both firm and considerate, reminding the customer of the amount that is past due and that the business would appreciate a swift payment. For example, a collection letter for a debt that is 30 days past due might start out by stating, "We have yet to receive payment and would encourage you to send it as soon as possible in order to maintain your credit privileges."
Content
The content of any business collection letter usually states the nature of the complaint and the steps that the recipient needs to take to resolve it. For example, a letter for a debt that is 60 days past due might state: "We still have not received payment for Invoice #19 dated January 2, 2012. On March 2nd, we sent a past due reminder but have not heard back from you. Please contact our office as soon as possible to arrange payment."
Consequences
Business collection letters that are final notices will typically inform the customer that his debt will be referred to a collection agency after a certain date. In some circumstances, a final notice may also state that the company will file legal action or repossess unpaid property. Final notices usually occur with debt that is 90 days or more past due. For example, a final collection letter for payment on furniture might state, "Unless payment in full is received within two weeks from the date of this letter, we will be forced to repossess the property."
Payment Negotiation
A business collection letter that attempts to preserve the well-being of the relationship between the merchant and the customer may offer a revised payment plan. For example, a company may offer partial payments to a customer who is past due by 30 days. The collection letter could state, "We recognize that you may be experiencing financial hardship. Please contact us as soon as possible to set up an alternate payment agreement."
Collection Letter 1
(your name,
street,
city, state, zip)
(date)
(name
street
city, state, zip)
Dear ____ (name):
How can we try to persuade you to pay your delinquent
account? We have tried many
suggestions for extending the payment period, for making the
monthly payments smaller,
and for getting help from lenders. Now we have exhausted our own resources.
We have to seek help from outside our own company. We have consulted with our attorney
and he told us that we have several avenues available to us
for collecting our money.
We are very uncomfortable with the thought of going to court
and, therefore, have decided
to extend your credit for ___ (amount of time) -- ___
(number of days).
To avoid legal action, we must have your check for
____ (amount of money) on or before ____, 200__ (date).
Sincerely,
(name)
(title)
Collection Letter 2
(your name,
street,
city, state, zip)
(date)
(name
street
city, state, zip)
___________________
Dear ____ (name):
____ (time period), just ____ (time period) is the time our
legal department tells us we
should extend your open account. After that time -- ____ (date) -- our legal
staff will
have to take action to collect the balance on your overdue
account.
We have repeatedly written and phoned your office asking for
payment. We know
that you understand, as a businessman, that we can no longer
by sympathetic. We do
expect your cooperation.
We expect a payment from you on or before _____ (date).
Sincerely,
(name)
(title)
Collection Letter 3
Dear ____ (name):
We have contacted you several times by letter and phone and
have discussed
arrangements for the payment of your account. The following items are still overdue:
No.
Date
Amount
No.
Date
Amount
No.
Date
Amount
No.
Date Amount
So far we have not received any sign of your
cooperation. Therefore, we must insist
on
immediate payment.
Please use the post past envelope that is enclosed for your convenience.
Sincerely,
(name)
(title)
Collection Letter 4
Dear ____ (name):
We cannot accept any further delay in paying your balance
due. Your ignoring our
suggestions of working together to get your account current
is having a negative
effect on your credit record. We must have a payment now. If you cannot send at
least a partial payment now, call us so that we can come to
a workable agreement.
Yours sincerely,
DEMAND ON PROMISSORY NOTE
(your name)
(street address)
(city, state, zip)
Date__________________
To:
______________________________
Attention: _____________________
This is to advise you that you are in default under the
terms of the promissory note
dated
_________________, for failure to make the payments due thereunder
of _________________.
The total amount due for those payments is
$___________. It is important that full
payment be received on or before ten (10) days from the date
of this letter, or the
term for payment of your indebtedness will be accelerated
and the entire principal
balance and any unpaid interest will become immediately due
and payable.
As you are aware, the terms of the promissory note provide
that interest accrues,
from the date of default, at the highest rate allowable by
law, and you are liable, upon
default, for all costs and reasonable attorney's fees
incurred in the collection of this debt.
If necessary, legal action will be taken to enforce payment
of this promissory
note. Please make
the above payments to avoid any further collection action.
Sincerely,
(name)
(title)
(phone)
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