A collection letter is an official demand for payment on a debt owed.
- Attempting to collect on past due bills or unpaid debt
- Officially recording a pattern of late payments made on a debt or bill
Most people and businesses who make loans, provide goods, or perform services to others intend to be paid. Unfortunately, this is not always the case. Regardless of whether a failure to pay is a mistake or an attempt to avoid financial liability, collection letters are an important part of the debt collection process. Collection letters are not just for professional lenders and creditors. Anyone can issue a collection letter to any person or business that they believe owes them money. The collection letter should detail any prior attempts to collect on the debt, how far past due the payment is as of the date of the letter, the amount due, and any invoices that remain unpaid. The collection letter should also include instructions detailing what the debtor should do to put himself back in good standing and a warning of the legal action that will become necessary if the debt remains unpaid. Collection letters should be forceful, but the ultimate goal is to receive payment without additional difficulties or conflict. Use this interactive form to craft an accurate and complete and accurate collection letter that you can use in an attempt to collect on unpaid debt.