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Debt collection letter samples free
December 25, 2018 Anniversary Wishes For Parents 2 comments

The #1 FREE source for collection letter samples. Includes letter The Best Debt Collection Letter Guides and Templates for your Business. Below are the Five.

Late Payment Letter Templates and Advice


Overdue Payment - Time to Get Serious

Your customer has been giving you the run around. You've heard every excuse for not paying under the sun. You've reached the end of your tether. It's time to get serious about collecting that late payment.

We believe that the best thing you can do at this stage is involve a third party to collect the debt for you. It immediately escalates the seriousness of the situation in the debtor's mind and makes them more likely to pay up quickly. Why not try our CreditXS debt collection service? We keep things professional and unemotional, letting you get on with what you do best - running your business. We can add late payment interest and our fees to the debt, so the service could end up costing you nothing.

However, if you are determined to spend your own time on chasing overdue payments, then here's some example late payment template letters written by the experts at My Credit Controllers that you can modify for your own use.

Late Payment Letter Template 1: First Reminder

Before sending this letter, you should check whether the company that owes you money is still in business. We've developed an easy to use web tool for doing just that - check whether the company is still in business here.

YOUR HEADED PAPER

[Customer Name]

[Customer Address]

[Date]

Dear Sirs,

Our Ref: [Customer Name]

It has come to our attention that your account is overdue for payment.

We are not aware of any disputes or reason for non-payment, therefore we would respectfully remind you that you have exceeded the trading terms for these outstanding amounts and we would be grateful to receive your remittance as soon as possible.

The details of the outstanding invoices are as follows:

Invoice NoInvoice DateDue DateAmount
0000101/01/0101/01/01£999.990
0000201/01/0101/01/01£999.99


We look forward to hearing from you.

Yours sincerely

On behalf of [Your Company Name]

Late Payment Letter Template 2: Second Chasing Letter

You have a statutory right to add interest and compensation to the debt you area owed by a commercial company. Use our late payment compensation calculator to calculate the amount. The second late payment letter template for a non-paying customer has optional text which allows you to add in the interest and compensation at this point.

YOUR HEADED PAPER

[Customer Name]

[Customer Address]

[Date]

Dear Sirs,

Our Ref: [Customer Name]

Second Request For Payment

Further to our previous correspondence dated [date of first letter], your account is still overdue for payment. We would respectfully remind you that you have exceeded the trading terms for these outstanding amounts and we would be grateful to receive your remittance by return.

The details of the outstanding invoices are as follows:

Invoice NoInvoice DateDue DateAmount
0000101/01/0101/01/01£999.990
0000201/01/0101/01/01£999.99


[OPTIONAL SECTION - ADD INTEREST] [We have a statutory right under the Late Payment of Commercial Debts Regulations 2013 to add interest and late payment compensation to the sum outstanding. This currently equates to £[calculate here] therefore, the amount to pay as at today currently stands at £[total of invoice amount and compensation].

We look forward to hearing from you.


Yours sincerely

On behalf of [Your Company Name]

 

Late Payment Letter Template 3: Final Chasing Letter

At this point you can introduce the option of passing the overdue amount to an external debt recovery service such as CreditXS from My Credit Controllers into your late payment letter.

YOUR HEADED PAPER

[Customer Name]

[Customer Address]

[Date]

Dear Sirs,

Our Ref: [Customer Name]

Final Request For Payment

Further to our previous correspondence dated [date of last letter], your account is still overdue for payment. We would respectfully remind you that you have exceeded the trading terms for these outstanding amounts and we would be grateful to receive your remittance before [DATE - set to 5 working days from date of letter] to avoid [CHOOSE ONE OF:] [this overdue amount being passed to commercial debt recovery service CreditXS for collection] / [further action].

The details of the outstanding invoices are as follows:

Invoice NoInvoice DateDue DateAmount
0000101/01/0101/01/01£999.990
0000201/01/0101/01/01£999.99


[OPTIONAL SECTION - ADD INTEREST] [We have a statutory right under the Late Payment of Commercial Debts Regulations 2013 to add interest and late payment compensation to the sum outstanding. This currently equates to £[calculate here] therefore, the amount to pay as at today currently stands at £[total of invoice amount and compensation.]

We look forward to hearing from you.

Yours sincerely

On behalf of [Your Company Name]

Late Payment Letter Template 4: Letter Before Action

It is not good practice to threaten legal action without the intention to follow through on your threats. In fact it can be construed as harassment.

Another option is to pass the debt to an external debt recovery service, such as Credit XS from My Credit Controllers. This escalates the seriousness of the debt in your customer's mind, frequently resulting in quick payment. Resolving the situation rapidly and without recourse to law is in everyone's interest. The fees from CreditXS can be added to the debt as part of the statutory compensation payment, so if the customer pays in full then the cost of the service is paid by the debtor.

However, if you want to press on without outside help, here's a template letter before action that gives the debtor one last chance to pay before you go legal.

 

YOUR HEADED PAPER

[Customer Name]

[Customer Address]

Without Prejudice

Outstanding Invoices – Company Name

Final Letter before Action – via email & tracked post

We are disappointed to see that despite numerous requests, payment for the overdue invoices as listed below has still not been received.

Invoice NoInvoice Date Due Date Amount
0000101/01/01 01/01/01 £999.990
0000201/01/01 01/01/01 £999.99


Under the Late Payment of Commercial Debts Regulations 2013 we are entitled to claim late payment interest & compensation charges. This currently equates to £[calculate here] therefore, the amount to pay as at today currently stands at £[total of invoice amount and compensation]

Take notice that if full payment of the £[TOTAL] is not received in our bank account by close of business on [DATE - set to five working days from letter date], we shall, without further notice, begin legal action to recover the debt, all court costs and statutory interest of 8% above the Bank of England base rate (fixed for the six month period within which date the invoice became overdue) pursuant to the late payment legislation to be borne by yourselves.

To prevent this from happening please pay in full now.

Please accept our apologies if payment has been made within the last 24 hours.

This is our final communication on the issue.

On behalf of [Your Company Name]




How we can Help:

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Writing a past due letter: samples for professional letters requesting . or outlined in the Fair Debt Collection Act, that defines exactly how a.

10+ Sample Collection Letters – Google Docs, MS Word, Apple Pages, PDF

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INTRODUCTION

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. Since every subsequent collection letter should change in tone and consequences of non-payment, we’ve created ready-to-use collection letter templates. Read on below to find out what every letter should say in order to collect payment as soon as possible.

THE FIRST COLLECTION LETTER

Just because this is the first collection letter, this doesn’t mean this is your first point on contact with the customer. By now you have sent the invoice, sent due date reminders and let them know when the invoice has gone past due. The first collection letter should be sent out to the non-paying customer as soon as the invoice has gone past due.

Since this is only the first letter, it is important to keep the tone friendly, informative and professional. There are many reasons why the customer has not paid on time, such as never receiving the invoice or missing something important on the invoice. By giving them a chance for explanation before getting upset and pushy, you are able to keep a great customer-vendor relationship.

This first collection letter should contain the following information:

  • Days past due
  • Amount due
  • Note previous attempts to collect
  • Summary of account
  • Instructions- what would you like them to do next?
  • Due date for payment- it is important to use an actually date, not “in the next 7 business days” as this can be vauge
  • Your contact information
FIRST COLLECTION LETTER TEMPLATE

Dear ,

This is just a friendly reminder that your account is past due. According to our records your balance of $ is currently . We have emailed a detailed copy of your account statements. In the event you have not received these messages and documents, we have provided a summary of your account below.

We would much appreciate if you could let us know the status of this payment. Please contact us or send your payment of $[Insert Amount] to the address below by April 16, 2015 if you have not already done so.

If there is some error or you are unable to pay at this time, please contact me at so we can correct any errors or arrange for another payment plan. Thank you for your prompt response to this request and for your continued business.

Sincerely,

THE SECOND COLLECTION LETTER

The second collection letter can be a tough balancing act. While your tone needs to become more assertive since the first letter seems to have gone ignored, you still need to remain friendly towards to customer. Finding the gray area between assertive and friendly is always difficult.

The time to send the second collection letter is either two weeks after the first collection letter has gone ignored, or after a promise to pay from the first letter has gone past due.

The second collection letter should include:

  • Mention of all previous attempts to collect, including the first collection letter
  • Original invoice due date
  • Days past due
  • Invoice number and amount
  • Instruction- what should they do next?
  • Offer help to work on the payment terms
  • Hint at the impact non-payment could have on their credit terms/ratings
  • Your contact information
SECOND COLLECTION LETTER TEMPLATE

Dear ,

At this time we have not yet received a payment in regards to nor have we gotten a response to the letter sent on . Your accounts is now days past due and you owe a total of .

As a valued customer, we would like to help you quickly remit payment to avoid any actions that could damage your credit rating or future credit limits with our company. If there is any reason you are unable to pay in full, please contact me at and I would be happy to talk about arranging a payment schedule that is mutually agreeable.

Please get in touch with me immediately if you would like to work out a payment schedule, otherwise please submit your payment of by . We can accept your credit card information over the phone, through our online payment portal, or I have enclosed a self-addressed envelope for your convenience should you choose to send a check in the mail.

Thank you in advance for your prompt response to this letter and for your continued business.

Sincerely,

THE THIRD COLLECTION LETTER

At this point, you have now sent multiple letters and made multiple attempts to collect. For every week that an invoice goes unpaid, the likelihood of not collecting on the full amount increases. For this reason, the tone of this letter will be very different than the rest. You will be notifying the customer that if they do not pay immediately, you will be forced to refer their account to a collections agency or involve a lawyer.

Although the third collection letter can be quite frustrating, it is important to continue to remain professional. By simply stating the facts and what the impending consequences

The third collection letter should include the following information:

  • Mention of all previous attempts to collect
  • Invoice number and amount
  • Original invoice due date
  • Current days past due
  • Instructions on what they should do next
  • A warning of the impending consequences
  • Your contact information and final request to contact you
THIRD COLLECTION LETTER TEMPLATE

Dear ,

At this time we still have not heard from you in regards to invoice which was due on nor have we gotten a response to the letter sent on , the letter sent on , or our numerous attempts to call and email you. Your accounts is now days past due and you owe a total of $.

I regret to inform you that unless we receive payment in full by or work out an agreed upon payment plan by this date, we will have to turn your invoice over to a collection agency and/or our attorney.

I hope to hear from you before this action must be taken to avoid damage to your credit rating or our future business relationship. Please contact me immediately at so we can get this matter settled.

Sincerely,

THE FINAL COLLECTION LETTER & NOTICE OF LEGAL ACTION

With this final collection letter, you have now done everything you can and are simply letting the customer know that the matter is no longer in your hands. Although it is not mandatory to let the customer know that their account has gone into collections or turned over to a lawyer, it can help to keep the relationship in good standing and make a smooth transition. This also gives you a last final attempt to collect, and when lawyers are involved, people usually start to hustle.

This letter is significantly shorter than the others because it is simply a notification letter. It will serve as proof of the multiple times the customer was contacted, the invoice in question and the amount that is due. Remember: even as the final notice, you still must remain professional.

FINAL COLLECTION LETTER & NOTICE OF LEGAL ACTION TEMPLATE

Dear,

At this time we still have not heard from you in regards to invoice for $ which was due on . Nor have we gotten a response to numerous phone calls, emails, or the letters sent on , , or .

Because we have failed in our attempt to work this out with you directly, I regret to inform you that we have reported this issue to the credit bureau and turned this invoice over to a collection agency who will be in contact with you in regard to the payment of this invoice.

Sincerely,

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12+ Collection Letter Templates – Google Docs, MS Word, Apple Pages

debt collection letter samples free

The collection is the process of gathering things from different parts or different places and then bringing them together to one place. The collection or collections may also be related to the money or the collection of cash. This collection of cash is done by an accounts receivable department or a collections department.

In this article are 45+ collection letter examples that are very useful for people whose jobs are related to collecting cash or about making collections. These letter examples are available for download online. They are also made in easy-to-download file formats so that you won’t have any trouble downloading them. Get yours now!

Collection Letter Clerical Error Example

Sample Restaurant Final Collection Letter Template

Debt Collection Letter Examples

Response to Debt Collection Letter

Disputed Debt Collection Letter

Debt Collection Agency Letter Format

Payment Collection Letters

Late Payment Collection Letter

Partial Payment Collection Letter

Payment Plan Collection Letter

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Medical Bill Collection Letter

Bill Collection Dispute Letter

Due Bill Collection Letter

Attorney Collection Letters

Response to Attorney Collection Letter Template

Attorney Debt Collection Letter

Business Collection Letters

Small Business Collection Letter

Professional Business Collection Letter

Business Debt Collection Letter

Business Collection Demand Letter

What Is a Collection Letter?

There are many reasons why people borrow money from lenders, banks, and other lending institutions. Their reasons vary depending on their need, such as personal needs, for college or school tuition, for home improvement, or for a new house or a new car. The money being borrowed is then paid through installment depending on what has been agreed upon in the loan contract.

If the debt is paid on time or on schedule, then everything would be fine. However, if the payment is due but still no payment is made, a collection letter is sent to the borrower to tell them about it. This collection letter will provide the details of the payment that has been missed, the date on how long collections can wait for the payment, their contact information, and the consequences if the borrower fails to comply.

What Is a Collection Agency?

An accounts receivable department or debt collection department may be an internal part of an organization, but when the number of collections increases, they tend to outsource people from a collections agency. A collections agency is a specialized organization that deals with collecting debt from people who borrowed money. They are sometimes considered a third-party service provider.

There are different ways on how they collect debt. Collections could be done through phone calls, emails, or via post mail. They also send people to personally make the collections or do door-to-door collections. Once all means of collecting the debt are exhausted by the collections agency, standard procedure is followed and certain notices are sent to the borrower.

What Is a Letter of Demand?

A letter of demand is sent to the borrower in the event that they refuse or fail to pay the amount to be collected after all the efforts to collect the payment is exhausted. This letter demands that the borrower pay the due amount together with the interest rates. It is a very serious matter if a letter of demand is sent because this often means that it is the final warning that the lender will send.

If the borrower still refuses to heed this letter of demand, the lender takes legal action. The lender may bring the issue to court and from there continue with collections through court proceedings. You can use free demand letters to make a demand letter.

What Is a Letter of Credit?

A letter of credit is issued by a bank to another bank and guarantees the seller that the payment made by the buyer will be received on time and in the right amount. If the buyer fails to pay the seller on the scheduled date, the bank will be the one to make the payment on behalf of the buyer. But banks don’t just send a letter of credit and shoulder the payment for what the buyer has purchased. They require a security or a collateral before they send out a letter of credit. This is how a letter of credit works. The use of a letter of credit has become an important aspect in intentional trade.

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Final Medical Collection Letter

Standard Medical Collection Letter

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Demand Collection Letters

Final Demand Collection Letter

Demand Debt Collection Letter

Demand of Payment Collection Letter

Collection Dispute Letters

Debt Collection Dispute Letter

Medical Collection Dispute Letter

Collection Agency Dispute Letter

Collection Agency Letter Examples

Dispute Collection Agency Letter

Collection Agency Settlement Letter

Collection Agency Demand Letter

Dental Collection Letter Examples

Dental Office Collection Letter Format

Dental Collection Letter to Patient

Who Uses a Collection Letter?

We now know that collection letters are sent by the lender to the borrower in the event that they miss making payments or fail to make the payments, regardless if it unintentional or intentional. The people or entity who uses a collection letter could be loan sharks, lending institutions, banking institutions, and credit card companies.

They follow a certain process in doing collections, which is defined and discussed in the agreement that the borrower and lender agreed to sign. You may also see the sample collection letters.

What Is Included in a Collection Letter?

  • A collection letter needs to be a powerful and effective letter, otherwise it will not be taken seriously by the borrower it is sent to. To make this happen, it should include all the important and complete information. Below are the things that should be included in a collection letter.
  • A collection letter should have a letterhead of the company. This sets things straight and lets the borrower know that this letter is from the institution where they borrowed money from. Having a professional letterhead attached to your letter means or suggests that you are serious about collecting the payment for the debt.
  • You should not assume that both you and the borrower agree and understand the same thing, so you should state your reason for the letter. Tell them about how the debt started, how much it was, how much was paid, how it came to this, and other essential details of the debt. This way the borrower will not have any reason to deny the facts you have provided.
  • To make the details even clearer, you should include all of the payments that is required. That would be the amount borrowed, the interest rates, any penalties and fees and payment to other damages that apply to it. This is to let the borrower know about the records of the payment that you have received from them. This can be used as evidence if the lender takes legal action, in the event that the situation will arise.
  • After making sure that you have provided each and every detail about the debt, then you should tell the borrower the next steps that should be done in order to settle the account. You should also tell them what will happen if the debt is not paid in full. This should not be taken or written like a threat. Its purpose is to make the borrower aware of the consequences if they refuse to do anything.
  • Finally, your collection letter may reach the borrower and they can just brush it off or throw it out like that without even opening, thus they can deny your claim for sending such letter. So when sending a collections letter to the borrower, you should require the borrower’s signature upon receiving the letter that was sent to them. This can be used in legal cases and that the borrower cannot deny the claim.

Friendly Collection Letters

Friendly Debt Collection Letter

Friendly Collection Letter

Customer Friendly Collection Letter

Aggressive Collection Letter

Aggressive Collection Letter Example

Credit and Collection Letter Example

Credit and Collection Cover Letter

Manager Credit and Collection Manager Cover Letter

Customer Collection Letter Examples

Customer Final Collection Letter

Customer Debt Collection Letter

Customer Collection Transmittal Letter

Final Collection Letters

Final Collection Notice Letter

Final Demand Collection Letter

Final Collection Attempt Letter

Final Debt Collection Letter

What Is the Purpose of a Collection Letter?

A collection letter is used to notify or tell the borrower that you need to collect the payment for the amount that is due. It can also be used to discuss matters with the borrower and to make arrangements on what needs to be done to resolve the issue. This letter should be written politely but firmly. A collection letter is made to make sure that payment is made so that the company will have an increased revenue. You may also want to check demand letter samples.

What Are the Principles of Collections?

Collection is not just something that is done rashly and unreasonably, what what we usually see that is being portrayed on television or in the movies. There are also principles that govern collections and they are discussed below.

  • Collections function to collect the money. This is the very first thing that is done. The collection of the money should be done according to the terms, conditions, and obligations based on the agreement. The borrower is obligated to make the payment for the money that they borrowed. The collections person makes sure that the borrower meets this obligation.
  • Collections should maintain a A4, US to the borrower. A borrower’s promise to mail or send the payment on a specific date should be received on that date. If the borrower fails to do so, the collections person should make a follow-up and contact the borrower about it.
  • A lot of things can get fixed if it’s discussed. That is why it is important to have the customer to discuss the account with the collections person. If the customer or borrower provides the reason for the account being delinquent, the collections person will know if there is any way to figure it out in order for a borrower to continue doing the payment. The collections person can also look into the situation and find other means for the borrower to be able to make a payment. This then will become a win-win situation for both.
  • Just like a business, it is important that goodwill is preserved between the customer and the lending institution. They may have bad account right now, but that doesn’t mean that they will have bad accounts forever. They may just have a reasonable explanation why such a thing happened. That is why it is important to keep good relations with them.

Details

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Size: A4, US

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Details

File Format

  • Google Docs
  • MS Word
  • Pages

Size: A4, US

Download

Debt collection letter template. Debt collection letters for unpaid invoices To access this free resource, simply fill in your details below and download. You can .

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debt collection letter samples free

The aim of the reminder letter as a tool for managing receivables is to reduce the number of outstanding debts, and to avoid the loss of receivables. At the same time, a professional dunning system is also geared towards retaining customers. This should be reflected in the tonality, as well as the number of escalation levels, which we will outline here to demonstrate business obligations to partners involved.

The legal basis for out-of-court past due notices by companies, lawyers, and credit bureaus are found in the Fair Credit Reporting Act (FCRA) and the Fair Credit Billing Act (FCBA). The Federal Trade Commission (FTC) oversees the implementation of these regulations. Court order for payment is regulated differently depending on what state you are in – disputes are usually settled at state level through general jurisdiction state and county courts. However, federal district and regional courts retain exclusive jurisdiction over cases considered to be an aspect of federal law or when the issue concerns parties located in different states.

Central legal concepts within the framework of the dunning system are maturity and default.

WATCH THE VIDEO ON THEME: Credit Dispute Letter: Send This Letter:Watch What Happens:

Our free debt collection letter template to help you collect overdue amounts from your customers and get advice on how you can recover debts. 7 day letter.

debt collection letter samples free
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