It demands the subject of debt to settle the outstanding bill, which is in default, within the certain time specified, and informs him about the total debt amount. Such letters are sent from a recovery agency on behalf of a creditor to the subjects of debt. A debt collection letter template has two functions: it informs the debtor of the defaulted payment and warns him about eventual legal court actions. It is always sent by post or fax in order the receipt to be confirmed in writing by the second party , so the letter can be used as an evidence that the debtor has been contacted and warned of the bad debt situation and the following procedures. It emphasises on settling the default payment but usually without a specific date, as it is the first reminder.
How to Write A Letter for Payment Collection
Use This Sample Collection Letter to Get Paid More Efficiently
One out of ten Americans has at least one debt in collection , according to the Consumer Financial Protection Bureau. Statista also reports the total debt in households at Getting paid the full amount can take forever to happen when faced with troublesome customers. Thus, knowing how to write friendly, yet firm collection letters are vital to retaining positive customer engagement. A collection letter is a written correspondence that notifies, reminds, or warns a customer about his or her due payment.
10 Tips for Writing Friendly Collection Letter
Most accounts receivable professionals barely have time to make all the phone calls necessary and send out every email, let alone make an individualized collection letter for every step of the collections process. However, following up every few weeks with a personalized letter requesting action from a non-paying customer truly helps to collect payment on time. Read on below to find out what every letter should say in order to collect payment as soon as possible. Want more helpful resources like this?
Below are the Five 5 best collection letter samples available. Unlike most debt collection letter templates, these come with complete how-to-guides to ensure they are used correctly in order to achieve optimal results. The first collection letter sample maximizes the results of a first follow-up by actually getting the attention of your debtor at an early stage.