CHAPTER 1

This chapter has sample collection letters you may have to write. The types of collection letters included are:

• Notification
• Reminder
• Inquiry
• Urgency
• Final Notice/Ultimatum
• Insufficient Funds
• Thank You for Payment
• Lost Payment/Apology

In this section, at the side of the page, you will find a brief explanation of each part of the letter. The first letter identifies each section of the letter. Subsequent letters identify only changes to the basic format.

Step-by-Step Guide

The purpose of the collection letter is to get the customer to pay an overdue bill.

Step 1: Check the spelling of the recipient's name. Use a gender-specific courtesy title only if you are certain of the recipient's gender. There is nothing more embarrassing or irritating than getting a collection letter, except getting one that is addressed improperly.

Step 2: The first part of the letter should state the concern and the situation (date purchased, amount owed and date due).

Step 3: The next part of the letter should indicate the deadline for paying the bill and any penalties that may result. You may also wish to indicate your company's policy concerning late payments, grace periods, penalties or alternative payment plans.

Step 4: The third part of the letter should indicate the consequences of not paying the bill. Initially, these may be penalties but, as the bill becomes more delinquent, it may include warnings of ruined credit ratings or involvement of a collection agency.

Step 5: The final part of the letter should encourage the recipient to send full payment or contact you to arrange a payment schedule. End with good will and a positive attitude that this situation will be resolved satisfactorily.

Note: At the end of this chapter is a checklist to use when you write collection letters.