Debt Collection Letters:
A Guide To Writing Letters That Succeed

You will be more successful, if you send them immediately after the payment due date has passed. Just be sure to follow all federal FDCPA guidelines, avoiding abusive and/or harassing language. Violating these could expose you to legal action. Customers may be able to sue for actual and punitive damages.

Depending on the size of your business, you can write them yourself, or assign a dedicated employee the tasks of making the phone calls and sending debt collection letters. The key is to establish a solid and consistent system to followup on delinquent accounts.

We recommend sending no more than two letters, spaced no later than 30 days apart. Our experience has repeatedly shown that after two letters with no success, you need to consider more intensive options, including private debt collection.

It is also important to note that the more time passes, the more difficult it can be to recover on your debt.

Writing Suggestions

• Clearly state the exact amount due and the time payment is due. Ask for full payment. This can be effective in either getting full payment from your customer, or encourage them to call you if they need to make payment arrangements.

• Motivate your customer by giving reasons why its to their advantage to pay you. Show them how THEY benefit by paying you, such as avoiding damaging their credit rating. Remember that your customers are driven by their own self interests, not yours.

• Send no more than two letters. The first can be a friendly past due reminder. The second needs to be a bit more aggressive.

• Keep your letters brief, and to the point.

Sample debt collection letters:

Sample Letter 1- Reminder

(date)

(name)
(street)
(city, state, zip)________________________

Dear _____ (name):

We are sure that you will not object to this reminder that there is abalance due of ____ (amount of balance) on your monthly account.

If you have not mailed your check, please do so now, this will bringyour account up-to-date.

Thank you, we appreciate your business.

Cordially,

(name)

(title)

(phone)

Sample Letter 2

(date)

(name)
(street)
(city, state, zip)

______________________

Dear ____ (name):

We are interested in our customers and are always trying to find new ways to improve our service. For these reasons, we are inquiring why there has been a further delay in paying your long overdue account. If we can help by making your payments smaller, extending our terms, or by recommending a lending company -- please let us know.

We would appreciate talking with you within the next_________ (days)and a payment in the amount of__________ (amount of payment)

Sincerely,

(name)

(title)

(phone)