Bad Debt Collection Letter
A Bad Debt Collection letter is written by the collection or finance company that wishes to receive an outstanding amount from its clients. This letter for collection of payment requests the client to settle the amount quickly. There are a few types of bad debt collection letters which serve as reminders until the finance company takes some harsher actions. The company mentions a deadline for the payment and also informs the client of the legal court actions that would be taken against him/her in case he/she fails to make the payment despite the reminder.
In short, this debt collection letter serves as a warning to the subject about the overdue payment and if necessary under any circumstances, it also acts as formal evidence that the company had informed the client of the situation and following procedures. An important point to be noted is that a Bad Debt Collection Letter is sent to the customer only once the payment is overdue.
Bad Debt Collection Letter – Sample
The sample for Bad Debt Collection Letter is as follows:
Nina J. Douglas,
The Collection Officer,
Mountain Finance Agency,
3896 North Bend River Road,
Somerset, KY 42503.
Date: 7 February 2011
John A. Peachey
2748 Hilltop Haven Drive
Andover, NJ 07821
Subject: Second reminder of Debt Collection
Dear Mr. Peachey,
I am writing this letter to inform you of the payment overdue. About the outstanding loan repayment of your personal automobile, in contract GJL83028, you are three (3) months late with your monthly payment of $300.00. Mountain Finance Agency is now serving you a second and final reminder of your outstanding payment of $900.00 which should be settled immediately.
An amount of $300.00 was to be paid on the first of each month. Since the same has not been made for three consecutive months, we request you to make the necessary payment on or before DD/MM/YYYY.
We would also like to inform you that daily interest will be computed against the outstanding bad debt; hence, it is to your benefit to settle the amount quickly. If you have paid the outstanding amount, please ignore this reminder. Otherwise, legal actions might be taken against you. However, we believe that you will rectify the situation at the soonest.
We also offer you any assistance required on our part concerning the procedure or any queries you have concerning the debt. Feel free to contact us at our number or email.
Kindly visit any of our branch offices to settle your outstanding debt as soon as possible.
Nina J. Douglas
Collection Officer, Mountain Finance Agency