In hard economic times, business owners and creditors may find themselves needing to send a collection letter to customers to recoup past-due payments. An effective collection letter should not only notify the consumer of the late payment but also maintain good customer-business relations.
A collection letter is a professionally written letter sent by a business owner, a creditor, or a company that has not been paid for services or goods in a timely manner. A collection letter notifies the customer of money owed and usually includes instructions on how to make late payments.
When a customer is late on a payment by more than just a few days, a collection letter will be sent that tells the customer the amount of the balance owed and how to pay it.
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The purpose of a collection letter is to nudge the customer to send payment or to call and discuss the matter. An effective collection letter is polite but firm and includes instructions on how to pay the debt. These letters are meant to stimulate payment for a company and help with revenue.
Receipt of a Collection Letter
If you receive a collection letter, you should make every effort to pay the amount requested. If you cannot repay the debt at the time the letter comes, you should call the creditor to discuss the situation. If you need to dispute the letter or debt, such as if you have already paid the debt and you think the letter is a mistake, it is important to contact the creditor as soon as you can to get the matter cleared up.
Contents of a Collection Letter
A collection letter will include the amount owed, a due date of requested payment and a method of preferred payment. It will also include a way to contact the creditor.