Debt Collection Letter

Debt Collection Letter

Introduction

Usually, people who take money as a loan may or may not pay it back on time. Sometimes the lender may give a few reminders, yet the person may not pay the amount on time. Events such as these can be frustrating for the lender, and an appropriate measure has to be taken so that the amount can be collected back on time. On of the solution is to write a Debt Collection Letter to the person so that the individual understands the importance of making the payment on time and also this will be viewed as the last warning.

Technically, a Debt Collection letter is written by an individual or company who wishes to receive an outstanding amount due to him. The debt collection letter is a reminder of the outstanding contributions which is requested for quick settlement through this letter. There can be 2 or 3 reminder letters before strict actions are taken against the defaulter. The tone shall be a bit stern yet not being unprofessional or cynical. The primary motive is to actively convey the idea that further delays in payment won’t be entertained. The letter shall not contain anything that resembles blackmailing.

Sample Letter

The following is a sample Debt Collection Letter.
From,

Barry Moore,

Accounts Manager,

Overseas Technology Industry,

120 Groove Road
New York, NY 10011

DD/MM/YYYY

To,

Michael Knight,

Great World Enterprise,

8271 Colonial Drive,
Bryan, TX 77803.

Subject: Debt Collection Letter.

Dear Mr. Knight,

On behalf of Overseas Technology, I would like to draw your attention to your outstanding payment of $1,500. This is about the last delivery of products on invoice #OT837/29 dated DD/MM/YYYY.

Your 30 days credit term on this shipment expired on DD/MM/YYYY. We have not received your payment as of today. Also, we had sent two reminders about the payment.  If your payment crossed this letter, please accept our thanks for your prompt payment; else it would be appreciated if you could settle the outstanding amount within a week.  We understand delays due to genuine reasons, and we expect some notice from your part regarding the cause for the delay. But as of today, we haven’t heard from you about the payment. We here by bring into your notice that we do not entertain such delays without valid reasons. We look forward to your prompt action in clearing your outstanding dues.

Thank you.

Yours Sincerely,

Barry Moore

Accounts Manager

Overseas Technology Industry

 

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

7 + six =