How to write a collection letter to customer
The mode and time of payment should be mentioned in the letter. Depending on the phase of the letters, one can contain either a reminder with the total amount, a reminder with the total amount and a certain date used as a due date for the default payment, or compiling information above, plus an optional starting date for court actions, if the debt is not settled before this date.
The more direct letter leads to fewer misunderstandings. Don't hesitate to make the message as personal and warm as possible. Although this letter is less friendly than other letters, it should still make it easy for the customer to respond. If you receive a collection letter and plan to pay your overdue bill, it is a good idea to write a letter reassuring the creditor of that fact.
Effective collection letters
Since this is only the first letter, it is important to keep the tone friendly, informative and professional. Your wording and tone are critical, especially if this is a customer you want to continue to do business with. If you have sent a collection letter by mistake, you should apologize for your error and acknowledge any inconvenience you may have caused. This first collection letter should contain the following information: Days past due Note previous attempts to collect Summary of account Instructions- what would you like them to do next? Although this letter is less friendly than other letters, it should still make it easy for the customer to respond. The collection letter should be signed by the sender, better to stamp it. Such letters are sent from a recovery agency on behalf of a creditor to the subjects of debt. It demands the subject of debt to settle the unpaid bill, which is by default, within the certain time specified and informs the debtor about the total debt value. Gather all the facts about your customer's account and to encourage your customer to pay the money owed. As a collection letter is an authentic document about the business relation of the two parties, so the letter should maintain a professional and formal tone. Generally the laws of the sates or countries provide a set of rules to recover money or the debt. Try to avoid long or confusing words and sentences. There are many reasons why the customer has not paid on time, such as never receiving the invoice or missing something important on the invoice. If you can include postage on the payment envelope, that is better.
Let the customer know exactly what the penalty will be in the final letter unless he or she responds immediately with the payment. Unlike earlier letters, this one should carry a demanding rather than a requesting tone.
Thank you for your payment. The letter should outline main features of the business, terms and conditions, on which both the parties have agreed. There are many reasons why the customer has not paid on time, such as never receiving the invoice or missing something important on the invoice.
A collection letter is an indication that the agreed rules have not been followed.
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