How to Write a Collection Letter

Posted by Anonymous , 9/4/2007 Tags:WriteCollectionLetter
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How to Write a Collection Letter

Introduction

A collection letter should be used when a customer, client or vendor has failed to make payments as agreed. This is not a fun task, but it doesn't have to be difficult. Here are some helpful tips for writing professional collection letters.

Instructions

Difficulty: Easy

Steps

1

Step One

Get the facts straight. Gather all the necessary information about the client and account for which you are trying to collect. You need to know the dates of service, the total due, any partial payments and when the account was due.
2

Step Two

Write a brief, one page letter that serves as a courteous reminder. State the basic facts about the debt you are trying to collect, and set a deadline for when you expect to be contacted.
3

Step Three

Send a second letter if you do not receive a response by the date specified. Refer to the first letter you sent and restate the facts about the account. Again, set a date for response or payment.
4

Step Four

Increase the harshness of each letter, and send a third letter expressing surprise at the lack of response to your request for payment. If partial payment has been received, note the payment and balance due.
5

Step Five

Document the series of letters, and record your collection efforts as well as any partial payments.
6

Step Six

Send a final letter stating your efforts and intent to turn the account over to a third party collection agency or attorney.
7

Step Seven

Submit the account information to a credit bureau, collection agency or attorney.

Tips & Warnings

  • Include your contact information and mailing address on any correspondence.
  • Note the consequences to a credit report for non-payment in your third letter.
  • Send the letter via certified mail requiring a signature of receipt.
  • Do not send more than one final letter. If you don't follow through with your threats at this stage, you will likely not collect the debt by sending another letter.
  • Always send the letters on professional, typed letterhead. This is business, not a personal matter.
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