The first collection letter will be sent to an invoiced consumer within two business days of receipt of your invoice. Unless you pay a bill every time it goes unpaid, then the collection letters will automatically change. In this blogging series, we will walk through the different phases of the collection process and provide a sample collection letter for each step. Download the Collectors Toolkit to gain a quick reference to our collection letter templates, aging report templates, collection call scripts, and much more. Do you have a suggestion that needs further information about such things? Use the collector toolkit on the collected letters. Return to your mailbox.
Did you ever need a letter template? Did your boss ask you to email a customer but didn't have the time to draft it for you? This is where our letter templates come in handy. Many different types of letters can be found here, and they're all free! Grab one now and get back to work :)
What is a Debt Validation Letter?
Before paying a penny to a debt collector, confirm that the debt belongs to you. Credit card collectors require verification of your debt to pay off your card debt. If you want more confirmation on where the debt is due, sending out payment verification letters is a quick solution. These two letters are important as they are common mistakes. You don't want to pay or accidentally revive a debt that may have been repaid beyond the statute of limitations. You do not want to fall victim to a debt collection scam. Read the basics for understanding debt validation letters - including the best sample letters.
Tips for writing a collection letter template
When someone is owed a particular quantity of money from the vendor, they would have a particular time period to pay their dues. If an individual cannot pay in time, he needs a creditor to inform them. A collector letter may also make a useful way to collect money on damaged items that have received defective or damaged materials. In such a case, the client would write a letter to the seller giving detailed details on this product and the return on his investment in the product and the goods. A creditor could try to reach out to the loan debtor through phone or mail, but it becomes necessary to write a collection letter template if this proves unsuccessful.
Use this sample collection letter to get paid more efficiently.
Collection letters work when they generate payment arrangements from your clients. If you're mailing a collection letter only and you get no responses now, then you have to change your collection letter. The best practices of letter writing are illustrated by examples provided below. The best practice will be to use a sample letter to develop a collection document for your small business. For more information about collecting letters, visit letters.com or iReadiness.com. Return to the page you come from: [link]
Debt Collection letter Examples
No matter the reason for writing the letter, it's necessary to write it formally. If your first time writing letters is the first time, a letter must contain these tips:
Many account receivable professionals barely have time to make all the phone calls necessary and send out every email, let alone making an individualized collection letter for each. However, following up with a personalized letter requesting action from non-paying customers truly helps collect payment on time. Since subsequent collection letters should change in tone and consequences of nonpayment, we created ready-made templates that you can use below this section reading area.
Most account receivables professionals barely have enough spare hours to call everyone numerous times. Still, sending emails and then creating their unique template themselves instead, they follow your company's guidelines or try using some prewritten templates here at no cost!
The First Debt Collection Letters
You have already sent the invoice, and now it is going past due. The first collection letter should be sent to all non-paying customers as soon as this happens since there could be many reasons for a delay in payment, like missing an important detail or never receiving the bill.
The tone of your first email must stay professional but also friendly with good reasoning, so they understand why you need their money quickly!
This first debt collection letter should contain:
Days Past Due
Note previous attempts to collect.
Instructions- what would you like them to do next?
The due date for payment is important to use an actual date, not "in the next 7 business days," as this can be vague and non-specific.
The tone of your first collection letter should be:
Friendly with good reasoning, so they understand why you need their money quickly!
If you have not received our emails or any documents from us yet, here's what you say:
Your account is almost delinquent, but we're still hoping to get the payment in on time. We've emailed you a copy of your statement with all the details about what's going on and how much needs to be paid off. Please let us know if there are any issues or questions!
Invoice number: 1234567891011
Invoice date March 12th, 2018 (3/12) Amount $895 Due Date April 8th, 2018 (4/8) Days Past Due 1 day(s).
I hope this email finds you well and that my request is not a burden. I am reaching out to ensure accurate payment of the bill as it has been some time since our last correspondence. If there are any errors or if you would like more information on how best to pay, please feel free to contact me so we can make sure everything works smoothly moving forward! Thank you for your continued business in the future :)
The Second Debt Collection Letter Example:
The best time to send the second collection letter is two weeks after a customer has received their first payment notice or past the due date. The tone should be more assertive but still friendly enough that they feel like you're on the same team and not out just for yourself. It's always difficult to find this gray area between being too pushy versus remaining helpful in your approach, so it takes some practice before perfecting control of how firm you want to come across when handling these situations!
Debt Collection Letter Example 1.2
If you have not received the first collection letter, please be aware that we sent a previous correspondence on (date) with an original due date of (due date). We want to remind you that your payment is past due. Please see the enclosed invoice and return it once paid in full for reference. If paying by check or money order, make payable to XYZ Company LLC and mail directly back via USPS insured service only within five days from today's postmark.
We understand how difficult these financial times are. Still, nonpayment can affect your credit situation and our business relationship moving forward, so please contact us if there are any questions about this communication at
Debt Collection Letter Example 2.2
We've noticed that your account is past due, and you owe us $. We want to help you resolve this issue as quickly as possible to avoid any further consequences or damage to our company, so please get in touch with me at **123-456-7890** if there's a reason why you cannot pay the full amount owed today.
We would love to work with you on a payment plan! Please call us at, send your credit card information through our online portal, or if it's easier for you, please mail in the attached envelope. We look forward to working together.
Debt Collection Letter Example 2.3
Your accounts are past due nowadays, and you owe $. As a valued client, we would like to help you quickly submit payment to avoid any actions that impede your credit rating or other future credit levels with our company. We can accept your credit card data via our online payment processing system or by e-mail if you wish to send a check in the mail. Sincerely we'd be happy to discuss arranging a mutually compatible payment schedule. Please get in touch with me ASAP if you are interested in making a payment.
The Third Debt Collection Letter Example:
After sending multiple letters and making several attempts to collect, you'll be forced to refer to their account if they don't pay immediately. This could mean involving a lawyer or collections agency in the matter at hand.
The collection letter gets pretty intense as it's your last resort before potentially taking legal action. Be sure not to lose sight of professionalism when writing this one out by simply stating facts without adding unnecessary commentary!
Debt Collection Letter Example 3.1
We have not heard from you regarding the invoice, which was due on ____, nor received a response to our letter sent on ___ or numerous attempts at calling and emailing. Your account is now past due by $___ days with no responses.
Regrettably, we will be turning your invoices over for collection unless payment has been made in full by / /2021 or work out an agreed-upon payment plan before this date.
I hope to hear from you before this action must be taken. If I do not, it could damage your credit rating and our future business relationship. To avoid these consequences, please get in touch with me immediately. Let's settle this matter together!
The Final Debt Collection Letter and Notice of Legal Action
As a courtesy, it is recommended that the customer be notified of their account being transferred to collections and/or legal action. Although this step isn't mandatory for you to complete your job as a Collections Officer, doing so can help preserve positive relations with customers and make things easier when transitioning between debt collection agencies or lawyers. In addition, making one last attempt at collecting through phone calls or letters is optional (but advised) by law firms; however, most people will quickly begin paying back small debts once lawyered up because they don't want any more negative marks; on their credit report!
This letter is a lot shorter than the others. That's because this one notifies you of something, and it provides proof that we've contacted them before about an invoice in question with how much money was due for our services. It's still important to maintain professionalism throughout!
The Final Debt Collection Letter and Notice of Legal Action Template
As of now, you have not responded to our invoice for $ due on, nor any communications or letters sent regarding this matter. We've tried working it out with you directly but failed, and so we're turning the issue over to a collection agency who will be in contact soon about repayment. Thank you.
The final collection letter and notice of legal action template
We haven't heard back about the invoice for $ due. Nor have many email messages or telephone numbers gone out from there. Because we failed to work this out directly with you, I regret to inform you that we have reported this dispute to the credit bureau and turned this invoice over to a collection agency to keep an eye on your claim. Please be patient. I'm the holder.
Debt Collection Letter Conclusion
I hope you found this blog post useful and that it has inspired you to send a letter or two. If so, go here to get started now! And don't forget to subscribe via email to receive our next
Please get in touch with your compliance officer before using these quick letter templates. We are not responsible for any lawsuits that may arise from one of them, so please use them at your own risk!
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