Collection Letters

The point of the collection letter is to collect the money that is owed. After sending one collection letter, send next and escalate your demand for payment. Here are several types of collection letters that you need to use to collect your money. Also take notice of other variations of collection letters from other sources displayed on this page.

When sending first collection letter it should only be a friendly reminder. Assume that the customer has forgotten to pay and jus invite to pay. Most people will make a payment after a couple of reminders. If there is no response to these reminders, you should assume that the customer is not paying because of some problems.

With the reminder send a copy of the original bill and highlight the amount past due, Include a short statement indicating the amount due, the due date, late charges and the account number. Make sure the address where the customer should send payment is indicated.

If the customer has not even made a partial payment after a couple of gentle Reminder Collection Letters, you can send a final reminder collection letter to ask why the customer is not paying. A final reminder letter should explain that there will be consequences for continued nonpayment. If no payment on the amount owed is received, then you will need to take a more aggressive approach in follow-up collection letters.

Try to maintain a good relationship with the customer and go a long way toward collecting your debt. Send the Inquiry Collection Letter demonstrate your willingness to help the customer solve current financial difficulty by setting up new terms. Accept a partial payment with regular payments after that, most customers in financial difficulty will agree with such suggestion.

In your first Inquiry Collection letter request for prompt payment, and add your willingness to help the customer by offering new terms for repayment. In the second Letter be positive but state firmly that the customer will pay a penalty for continued nonpayment such as a late fee, a collection fee, or interest on the amount owed.

If the customer fails to respond to any of the Reminder Collection Letters or to the Inquiry Collection Letters, then send the Appeal Collection letter in one of two ways, positive or negative. When send the Ultimatum Collection Letter and state the specific action you will take if the customer does not send payment by a certain date. Your statements should be fair, reasonable, and logical. If this doesn’t result in due payments act in your way.