Late Payment Letter, Sample & Format

Late Payment LetterIntroduction:

A late payment letter is usually written by a financial agency such as a bank to its client who has missed his repayment(s). The letter states the overdue amount and other related information clearly to ensure no dispute arises with the defaulter over the facts. Warnings and legal actions can be employed if a prompt settlement is not taken. You can inform the client regarding the consultation procedure available.

By writing this letter, you have a record of a formal notice issued to the customer. This letter is written when the date for Payment has been missed or when the client has not reverted, and you want to take action against the customer. The letter includes the amount to be paid and interest if any and the amount of penalty to be paid. The letter is written in a formal tone and should be to the point. It should be a polite reminder and not too harsh.

Sample Letter:

Following is a sample of a Late Payment Letter.

 

From,

Chester L. Cunningham

Stanford Bank

1463 Windy Ridge Road
Wabash, IN 46992

 

02/05/2010

 

To,

Harry Logan

413 Waikiki Street
San Antonio, TX 78237

 

Dear Mr. Logan,

RE: Late payment

We have on record that you are currently one month late in serving your loan repayment, as per agreement BH1029-2932 dated January 10, 2004. Perhaps you have been busy and have overlooked this matter. You are two weeks behind the stipulated payment date.

We don’t bother our customers through letters, but you did not revert with a response regarding our previous letter also. This is our final warning to you, next time a strict action will be taken against you.

The outstanding amount is $2,000, and a late charge will be imposed if the amount is not settled in 3 days. We trust that you will make time to pay the outstanding due promptly before a higher interest is imposed on your outstanding amount. If you have already made the payment, please ignore this letter.

If you are facing any financial difficulties in settling the mentioned, please call our financial advisors for a free consultation.

Thank you for your prompt payment.

Yours Truly

Chester L. Cunningham

Loans Officer

Stanford Bank

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