Download
1 / 12
120 likes | 127 Views
When done right, sending a collection letter for payment can be highly successful at getting your past-due customeru2019s attention.
E N D
Start your letter with a light note, such as an airy greeting. For instance, write a brief "Good day to you, dear customer!" and emphasize how much you appreciate their continued support of your services or products in the past few years. These statements put your debtors at ease before you run through their debts in detail.
Next, be formal and upfront in explaining specific amounts that your errant debtors owed you in the letter. Prominently print the numbers for the principal debt, the total interest accrued, and extra charges that went to the collecting agency for their assistance. This creates transparency and builds up trust between the debtor and creditor. In addition, using large text in your demand letter helps debtors with poor eyesight to better read its message clearly.
Identify the dates that the debtor has missed a payment or two. Also, include the number of times you've sent reminders and the dates you've sent demand letters to that person. Emphasize the fact that those letters have been ignored and the debt remains in overdue.
Clarify the consequences of not paying the debt. Make sure you state that you're transferring the collection of their debts to a firm that specializes in this line of work. Once a debt collection list has been sold, the debtor will have to face the consequences of his refusal to pay. For instance, he may face difficulties in borrowing money from a bank or a micro-lending company because of his bad credit line. Mayhap, a debtor can still get approval for quick cash loans for a good car, but these close-ended credits also come with a high price, which is losing their car and owing another creditor.
Show you have your debtor's welfare and best interests in mind. Maintain a respectful demeanor as you choose your words throughout the letter. Do not threaten or deceive the debtor into thinking you have the power, influence or connections to make his/her life a living hell.
Every debtor wants to see alternative ways to pay without putting undue burden on their families. As a creditor, you must make the first step and offer your debtors a settlement scheme that lets them pay in a few installments or pay in full at a reduced lump sum. Specify the dates and times for the payments.
Most debt collection letters give the debtor at least five days to comply with the request for full payment. Some letters have a grace period of only three days. Either way, the debtors must find ways to pay off the remaining debts for good.
You may end your letters with a short farewell. Invite your debtors to call, text, or email you directly, or to visit your office immediately after receiving the letter. Include the contact numbers for your office and those of your credit collection agency.
Make sure your letter's formatting and background don't look exactly the same as the legal documents sent by the courts or government agencies. Otherwise, you'd get in trouble with the law. Do not use the logos or seals of these offices and never imply that you were someone representing them.
Send your debt collection letters via the local Post Office or an express mail service. You may send your Demand Letter with a prepaid stamp for debtors to reply to you without paying postage fees.
TROVEWORKS Troveworks offers an accounts receivable solution that will help in streamlining your cash flow. troveworks.com
