• You have reviewed the transfer of the balance to a collection agency, which may be able to collect the debt for you for a reasonable fee. However, keep in mind that some agencies charge a percentage of claims, which can often be more expensive than a lawyer sending a letter before acting on your behalf. Letter in case you don`t have any available money to offer to your non-senior creditors. One week after sending letter 1 and if the debt remains unpaid, you must send letter number 2 with a copy of the invoice. This can be sent by e-mail, but must also be sent by post. The debt collection letter is the most typical written form of communication by mail. If the written notice is in the form of a telegram or postcard, the envelope must not indicate the nature of the content (according to FDCPA, www.federalreserve.gov/boarddocs/supmanual/cch/fairdebt.pdf, “Communication with third parties”). However, if you`re determined to spend your time tracking late payments, here are some examples of late payment letter templates written by the experts at My Credit Controllers that you can modify for your own use. It is not prepared as a letter before the action (the official letter that initiates a formal legal process) that would normally follow after this step. General reminder letter, also known as the “flexible letter template”: an initial reminder and an optional follow-up reminder; both including the total amount of the invoice. It focuses on the settlement of the default payment, but usually without a specific date, since this is the first reminder. The number of main reminders depends on the collection agency, but usually varies between one and three. The example looks like this: A sample collection letter has two functions: it informs the debtor of the late payment and warns him of possible legal proceedings.
It is always sent by post or fax (so that receipt can be confirmed in writing by the second party), so that the letter can be used as proof that the debtor has been contacted and notified of the bad debt situation and subsequent proceedings. Dear XX (debtor`s name), despite our previous reminders, we still haven`t received any payment or response from you. Therefore, we regret to inform you that if we do not receive full payment of XX (amount) by XX/XX/XX (deadline), we have no choice but to take legal action against you to recover the amount of the debt for our client (name of creditor and company). The total amount of debt and additional costs can be found below:Account value: XX (insert debt amount)Default fee: XX (insert amount)Interest charges: XX (insert amount)Total amount: XX (insert amount)If your payment is not received in full within the next seven days from XX/XX/XX (current date) to XX/XX/XX (deadline), immediate legal proceedings will take place. We recommend that this issue be addressed as a matter of urgency and we believe that you will not ignore this latest reminder. To avoid the inconvenience of legal proceedings, we recommend that you pay the full amount of debt and additional costs as soon as possible. We continue to be confident that legal action will not be necessary and look forward to payment in return. Sincerely(name of contact person, name of collection agency) • You have sent a message to your debtor (called “letter before action”) informing him that you will initiate legal proceedings against him, unless payment is made immediately (and this letter has been ignored by the debtor).
At this point, you can introduce the option to remit the overdue amount to an external collection service such as My Credit Controllers` CreditXS in your default. However, if you want to continue without outside help, here is a template letter before the action, which will give the debtor one last chance to pay before you become legal. Such a “flexible letter template” can also be found on the CSA website (www.csa-uk.com/). Debt certificates are used by creditors and debtors to collect, review, contest and settle debts in accordance with the Fair Debt Collection Practices Act. It is strongly recommended that any communication that takes place between a creditor and a debtor be made by registered mail in order to obtain a receipt for these declarations.