Debt Collection Letter

Long-standing debt is a nuisance for both creditor and debtor. It can damage their professional relationship and trust especially when the one who owes the money is not cooperating or communicating at all. Sending out a letter to the debtor is one way to call his attention and this can be done even before the assistance of a collections agency.

Mindful creditors are smart when it comes to letters requiring action and response from their debtors. One good example is a prepared reminder from a credit card company or a service provider clearly stating their intentions of hiring a collections agency if due payments are not forwarded within a specific period. Some creditors give at least thirty days for their delinquent clients to pay off their dues in full; while others may have a leeway of up to ninety days.

In a perfect word, no one wants to hire a collections agency to do the cold calling and drafting of debt collection letters. But these agencies can also be the last resort if all attempts to communicate with your debtor fail. And of course, a professional collections company will abide by the guidelines that protect customers – ensuring no one is abused or taken advantage during the process.

For business owners and creditors, it is important to lay out your conditions based on the guidelines and rights that protect your debtors. Make sure to draft a clear and concise letter stating the urgency of the problem and the possible solutions and options, so your client can pay off whatever is due. List down the exact amounts of payments that are due – ensuring the descriptions are there as well, to remind your debtors what those payments are for.

Remember that your goal is to communicate with your debtors in order for them to cooperate with you. If they need time or if they set certain conditions that will allow them to pay off without additional problems, it is best to discuss it with them instead of bombarding right away with a letter from a credit and collections company.