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Sample Debt Collection Letter
Examples and Guidelines
When it comes to collecting on past due accounts from your non-paying customers, your business has to become skilled at writing effective debt collection letters, as part of the debt recovery process.If you are novice when it comes to the business of debt collection, are clueless about how to proceed and what to write so that the message is clear that you mean business, we've included examples of a sample debt collection letter that can help you. This is one of the most important documents of the debt recovery process, and it has to be drafted in a legal, standard manner. These debt collection letters are highly sensitive and should be written with knowledge of the laws and guidelines regulating communications with debtors. Legal issues can be brought about by communicating in a manner seen as abusive or threatening. What’s more, these letters work as proof at the time of legal proceedings. Be warned that before you set about the process of drafting a debt collection letter, you need to educate yourself on legal matters concerning the subject. The federal law that regulates these rules is called The Fair Debt Collections Practices Act, or FDCPA. It's goal is to safeguard debtors from harassment by creditors. To ensure debtors’ security and interest there are clauses in those rules that define a legal standard for writing letters to recover debt. Also these rules restrict the use of certain abusive or libelous language. Also, be sure to observe any additional state laws. Go to your state's attorney general's website for information. By law you cannot write any such letter that carries a sense of threat or harassment to the debtor. It should also be devoid of a slanderous, attacking tone or language. In fact, your letters should be highly professional and amiable. Even portions where you want to imply outrage at nonpayment should be phrased cordially. Failing to do so could open up your business to the debtor sueing you for harassing or threatening him/ her. In order to make things simple and clear, there are various web-sites, as well as books and magazines offering sample debt collection letter copies. Here are some sample debt collection letters you can use. These sample letters follow the recommended format and general rules for writing a debt recovery letter. You could also have your pick of ready-to-use letters, where you only need to fill in your case specifications. Going through few sample debt collection letter copies might help you to get a feel of the whole process, so that soon you are able to create a version of your own. Generally, it is recommended to send the first letter after a collection call is made, and right after the due date without any payment. Then a series of 4 (sometimes 5) letters are sent consecutively with a gap of 7 to 10 days. The first letter is basically a friendly reminder. The second letter is a bit more urgent with a sympathetic inquiry about any problem that the debtor might be facing. The third letter, still more serious, should describe possible outcomes for non-payment and an earnest request to pay off the due amount. The fourth letter (often the final letter) is your declaration of initiating legal proceedings, in case a further 7 days’ of final deadline for payment is ignored. If you are a novice at writing debt collection letters, the sample debt collection letter copies available both online and in books are the easiest way out. They will in fact guide you through every step, till you are confident to draft them yourself. These letters also lists those documents that you need to attach with each stage of the letters. Hopefully with the help of these sample debt recovery letters you will be fully prepared, while acting within legal guidelines.
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