A Collection Letter is generally written by the creditors to their debtors who have taken a loan from them for their personal use or a new business. The need for writing arises from credit sales. The traditional business policy that enhances the volume of sales is “Selling on Credit.” The amount is being credited once both the parties sign an agreement in which a date is mentioned by which the debtor has to make the payment of the loan on an installment basis.
In this scenario, the seller allows the customers a particular period for payment of dues. A collection letter is written by the creditors when the payment by a debtor is not made on time.
A collection letter is also written to collect the refunded money on any defective product or service. In this case, it is written by the customer to the dealer, so that he can collect his refunded money. A refund letter should also be written formally and with the utmost respect towards the dealer you are writing it to. Tell them about the defect in their product/services in detail and what grievance it has caused.
Format of Collection Letter
Ap #481-7473 Cum Rd.
Yorba Linda South Carolina 28423
Ap #146-3132 Cras Rd.
Kingsport NH 56618
Subject: Compliment Letter
Dear Aaron Trujillo,
This letter is to inform you about the loan amount ……….. (Amount) taken from our bank and is now due for its first installment. You can make the payment before ——– (Date) as it is your late submission. As per the signed contract by both parties, if the payment is not made on time, we are supposed to take legal action against you. Furthermore, we would also like you to update us with the mode of payment and how would you like to proceed with it. We are glad to serve you and hoping to have a long-term association with you.
Tips: How to Write Collection Email
From: name @email.com
Subject: Collection Letter for payment reminder
This letter is written to inform you about the loan that you had taken from our institution, which is registered with the docket number dated ----- (the date on which the loan is listed).
For the loan that you have taken, we would want to inform you that the date of your first installment is coming close and is due on ----- (date) as mentioned in the agreement of the loan.
Please let us know how and by when the payment will be made to us.
As per you decide the mode of payment, we can also send a representative to collect it at a convenient time. However, you must be aware that we will have to take legal action if payments are not received before their due date.
It is our pleasure to serve you and we hope to have a pleasurable business association with you.
(Name of signing authority)
Writing Tips: How to write Collection Letter
- The initial step of writing a collection letter is it is vital to give some extra time to debtor to arrange funds for the payments in the letter.
- While writing the letter, the tone should be firm and formal.
- The letter should mention the due date of the payment and also the amount.
- You must mention the repercussions which the debtor may face regarding nonpayment and also provide a last date for the payment.
- After writing the letter, please recheck for punctuation and grammatical errors.
Sample of Collection Letter Example
Collection Letter Template Sample
343-6527 Purus. Avenue
Logan NV 12657
1429 Netus Rd.
Reedsport NY 48247
Subject: Compliment Letter
Dear Aaron Trujillo,
Concerning the agreement signed by you against loan of amount $50000, I would like to inform you that your payment for the first installment is due on 15th December; I would appreciate if you could do the needful on time. Also, as per the rules there are actions that can be taken against you, if the payment is not made on time. I wish that you will abide by the terms of agreement and will settle the loan on time. In case you wish the payment to be collected from your place do give us a call and our representative will do the needful.
Hope to have a sound business with you.
Collection Letter to Client
282-8351 Tincidunt Ave
Sedalia Utah 53700
Ap #130-1685 Ut Street
Tyler KS 73510
Subject: Collection Letter for payment reminder
Dear Ina Burt,
It has been our pleasure to serve you and you have been a valued customer to us. You have always been punctual about the payments and have paid your bills within the time period of 30 days as mentioned in the agreement. So, as the date of your installment is coming near, we would like to remind you about the payment, which is amounted for --- -- (mention the amount) and invoice #(------). We have not received your payment and please consider this as a gentle reminder from our side. If you have already mailed your cheque, please disregard this notice.
In case of any query, you are free to contact us at (phone number) or (email address).
Debt Collection Letter
Ap #250-9843 Elementum St.
South Gate Missouri 68999
557-2026 Purus St.
Watertown TN 07367
Subject: Reminder of payment due
Dear Palmer Gay,
I am writing this letter on behalf of ABC Bank regarding your debt. We are writing to inform you about the debt payment to be made at your end before its due date. Your due amount before the date ends is ----- (the amount that needs to be paid) and date (DD/MM/YYYY). Since no payment was made, the amount is now considered overdue and we request you to make the payment on or before DD/MM/YYYY.
Being our privileged customer it is our duty to inform you that if the payment is not made on time, then there are legal actions that can be taken against you. So, it would be better to avoid any such situation and make the payment before the due date.
If there is any clarification you need in case of the payment to be made, then feel free to contact us anytime. Please find attached a copy of the contract or the details of the invoice. Our contact details have been included as well.
Finance Manager, ABC Bank
Friendly Collection Letter
Ap #676-6532 Odio Rd.
Darlington CO 06963
Ap #517-7326 Elementum Rd.
Fort Smith North Dakota 79637
Dear Vielka Nielsen,
Your account is now seriously delinquent. Payment for invoice #----- in the amount of $-------- was due by ---------. To date, no payment has been received.
I have already requested you many times for the payment. This is your final notice.
So, in case of failure to make the payment on time by the due date, which is ---- (DD/MM/YYYY), your case will be forwarded to a professional debt collection agency.
To avoid this situation, please do the payment immediately to the following address.
Your phone numbers
Collection Letter Template Final Notice
1195 Lobortis Rd.
New Orleans New Hampshire 71983
487-5787 Mollis St.
City of Industry Louisiana 67973
Subject: Final Notice Prior to Collection
Dear Remedios Hester,
Please acknowledge this letter as a final notice to the amount of the debt (mention the amount), which is due on the date (DD/MM/YYYY). Till the present date, we have not received any communication or information for the due amount (------). We have tried to reach you before in the form of letters, but all the attempts have failed. There has been no reply to the numerous communications and thus your case has been transferred to an outside collection agency.
The balance in your account past the due date is the amount (0000). With this letter of information, we hope to close this case within ---- business days of this week (Date – DD/MM/YYYY). Once, the payment is made the collection process will be stopped.
In case you fail to reply to this notice and make the payment, the debt collection agency will contact you and the action will be taken to collect the debt cannot be ignored.
Title, Company Name
Sample Letter For Collection of Payment
9631 Semper Ave
Astoria NJ 66309
Ap #782-7348 Dis Rd.
Austin KY 50710
Dear Ezra Duffy,
This letter is a formal notice that we are yet to receive your payment of (-----) for ------ (product name) purchased on ---- (DD/MM/YYYY) and delivered on ----- (DD/MM/YYYY).
Please find below the details of your order.
Invoice number (-----)
Product quantity (-------)
Amount due (--------)
Also, it was mention in our terms and conditions that you would also be charged ---- (mention amount) upon the receipt of order. Through this letter, we would request you to process your invoice and submit payment to us by ---- (DD/MM/YYYY). Please make the payment by cheque.
If you would like to change the payment method or setup any credit card facility or have any questions, then also please let us know and contact us on our toll-free number (----).
Sample Debt Collection Letter by Attorney
P.O. Box 642 3450 In Road
Isle of Palms New York 03828
Ap #367-674 Mi Street
Greensboro VT 40684
Dear McKenzie Hernandez,
We are writing this letter to inform you that your payment is due and has crossed its date of submission. Your outstanding payment is ----- (amount to be paid). The present balance of your account is ------ (Amount), after the due date of your payment. For keeping records, we have also sent you an e-statement of your account. So, if you have failed to receive any of your messages and documents, then below we have provided an account summary to you.
The number of your Invoice:
Date of your Invoice:
Days past due:
We would like you to respond to us with the status of your payment. You can contact us for any inquiry or also send your payment ----- (mention amount) to the address below, by (mention the date).
Attn: Accounting Dept.
Collection Letter to Customer
P.O. Box 854 8580 In Ave
Revere South Dakota 43841
7709 Justo. Ave
Princeton TX 77987
Dear Blythe Carroll,
We hope that you had a great time shopping/ordering with us. It’s been our pleasure to serve you/ assist you over so many years. You have been always on time in paying all your payments, but this you are yet to pay your payment of ---- (amount) by the date --- ((DD/MM/YYYY).
This is a gentle reminder from our side to clear your payment before ---- (DD/MM/YYYY) on our mentioned address or through any other payment mode comfortable for you. So, please send us your payment as soon as possible. If you have already made your payment, then kindly ignore this notice.
If you have any doubts/queries, feel free to contact us anytime.
Collection Letter for Medical Office
4005 Praesent St.
Torrance Wyoming 22767
Ap #315-8441 Eleifend Street
Fairbanks RI 96892
Subject – Collection letter for medical office
Dear Sonya Ray,
This letter is to inform you about your bill payment that is due and has crossed over 2 months already.
In the past, our medical office has sent you several reminders for making the payment, but I didn’t get any response from your side.
Through this letter, we want to remind you once again that please pay your outstanding bill of (mention the amount) on or before (DD/MM/YYYY), so there are no actions taken against you in any scenario.
If there is any difficulty in settling the payment, then please inform us or contact us and we would help you to clear your payment in the best possible way.
We hope that you will clear your payment this time.
(Title of the Sender)
Agencies Collection Letter
1011 Massa Av.
Kent ID 63725
P.O. Box 847 8019 Facilisis Street
Joliet SC 73490
Dear Howard Hayden,
We have been informed by your creditor ---- (Name) that your balance is due ---- (amount) by the date – (DD/MM/YYYY).
You have a decent credit rating because of your previous records, but you have been failed to make this payment and on the account of this there is a possibility of damaging your credit rating. In order to not let this happen, please clear your payment before --- (DD/MM/YYYY), either, pay the amount of ----- (Amount) or be in contact with your creditor --- (name) to settle the issue without any interference from the outside party.
We would also like to inform you that if you fail to do any of these things, then the case will be forwarded to a law attorney against you for the collection of debt.
As per the law, you are given 30 days after the receiving of this letter settle the dispute or make the payment. If you failed or write to us in regard to the dispute/creditor/payment, we will have to get back to you with that information.
Also, as per the law, we do not have to wait till 30 days to take any action against you fi there is any doubt or failure of notifying this letter.
Please pay immediate attention to this letter.
Agency Representative Signature
Dispute Collection Letter Sample
1293 Tincidunt Street
Atwater Pennsylvania 76865
Ap #364-2006 Ipsum Avenue
Wilmington Ohio 91750
Re: Your Company name, Account Number
Dear Jeanette Sharpe,
I have been received emails from your company, to settle a debt, which I am not aware of and not accountable also. So, I am writing this letter to dispute this debt, and request you to share with me all the details and documents for the outstanding debt.
The letter is not the refusal to pay, but as per the law, it is in order to bring into notice that your claim is disputed and validation is requested.
Please provide me with the following details:
The account of money owed
Explanation in detail of the calculation of money owned
Documents to validate that I have agreed to pay the amount
Identification of proof of original creditor
Documents of proof that show legal rights to collect this amount
As an aware citizen, I am aware of my rights and would request you to submit all the proof and documents related to this debt.
So, I dispute this debt, therefore, until validated, it is evident that information you have regarding the debt is inaccurate. So, please reply to the notice for the further correct action as per the law.
Lawyer Debt Collection Letter
P.O. Box 558 9561 Lacus. Road
Laughlin Hawaii 99602
Ap #345-3847 Metus Road
Independence CO 30135
Dear Kim Fletcher
This is a formal notice informing you of failing of paying your debt ---- (amount) to --- (creditor’s name and address), from today, (DD/MM/YYYY) and thus, on behalf of the creditor, we have passed your case to the court.
This letter is the legal notice to clear the payment before --- (DD/MM/YYYY), failing which you will have to appear before the court and pay additional charges as well. Below are the details that you would need to make the payment.
Account Value: XXXX (insert debt amount)
Please consider this notice as an urgent action, failing which you will have to appear before the law of court and official proceedings will be held against you in failing of paying the debt.
Name of the debitor collection agency
Collection Letter Template
Collection Letter Template in PDF Format
Collection Letter Template in Word [Doc.] Format
A Collection Letter allows the senders to inform the recipient about the payment due from their end and its importance of being paid on time. Also, it provides an opportunity to inform the receiver about the possible actions that can be taken against them if the payment is made on time. The points mentioned above should help in writing a great Collection Letter.