Write a Letter to Collect Debt

Edited by Timbuktu, Charmed, JMA, Richelle and 16 others

When someone owes you money, it's best to approach them with a calm, level head. You can then engage them in a polite conversation about the debt and then begin to explore some of the options available to collecting it. In the case of a business where you may be unable to collect the debt by other means, the following can be used.

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Your Business Collection Letter Should Include

  • The account number of the customer for both internal accounting and so the customer can identify their account.
  • The date of the original debt and any invoice numbers associated with it.
  • The total amount that is owed, along with current payment due and any overdue payments, late fees or penalties associated with the account.
  • The original due date.
  • Include a phone number that directs the customer to the person they need to speak to regarding their debt.
  • A self-addressed, stamped envelope so the customer can choose that method of payment.

How to Write

  1. 1
    Make sure you are very clear about that the letter is being sent to them to collect a debt
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  2. 2
    Verify all the important information in the letter and let the customer know payment is now due (or overdue)
    Be very clear that money is owed. There are cases when customers may have failed to take note of due dates. It's important to be straightforward in your letter, that payment due dates have been missed and now payment is expected as soon as possible.
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  3. 3
    At all times, the letter should remain clear and concise
    If appropriate, add a date when action will take place by to avoid further collection activity and fees.
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  4. 4
    State exactly what the exact consequences of non-payment are
    Build up the fact that non-payment will create a lot of inconvenience and may affect their credit rating.
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  5. 5
    Discuss options for payment
    You don't your customer to further delay making a payment or payments just because he isn't sure how to make a payment.
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Sample Letter

Dear Ms. Owen:

You have not responded to the initial letter we sent you regarding your outstanding account. Currently you owe a balance of $200 and we will need payment by October 12, to avoid any further collection activity. If there is a reason you are unable to make this payment, or you would like to further discuss your account, please call Mr. Erickson at (888) 555 - 1234. It's important that you contact us as soon as you can.

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Questions and Answers

Sample letters how to collect money for missed rent payment?


[Name of the Person Receiving the Letter]

[Address of the Person]

[City, State and Zip Code]

Dear [Name of the Person],

This is to inform you of your unpaid rent due under the rental agreement on the following property:

[State the Property Address]

As of [State the Date Today] your [Monthly Due] payment is [Days Due] past due. Your rent was due on [Date]. In addition, you owe late charges itemized below:

[Show the Computation]

We request the above outstanding balance and interest be settled within [Number of Days] days. If the payment is not received by [Date], we may take legal action to enforce your obligation under the rental agreement.

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Please feel free to contact us at this number, [State your Contact Details], and ask for [Contact Person's Name] if you have any questions or need additional information.


Property Manager

Hi, actually I want to know something.

I have to give notice to students to inform them about money collection for Saraswati Puja. Can you give me an example, please?

What you need is not a letter to collect debt but rather ask for a donation and you can find how to do that in this VisiHow article titled Write a Letter of Request or Favor for Fundraising/Charity Event.

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How to write a letter that he may sign that he will return money or balance?

I purchased a lease land without papers / without properly identifying the land, it is going for 3 years and no land title is given and the person always giving me turn around and I want to collect the given money.

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Did you ever sign anything previous with him such as a monthly payment agreement? You could list all the payments you have made along with the dates as close as you can get them. Attach them to a letter requesting that you have either a formal agreement made or if you have paid the amount that was agreed on for the purchase of the land, you can request that the title be handed over to you. If you still do not get an answer from him then your next action will be to take him to civil court. You will already be halfway prepared to file, since you will have all the payments you have made accounted for.

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Letter about pending payments from a customer. We need to give the complaint to the association secretary.

In our company, one of the customers is very behind in payments. No payments have been received for the past 18 months so we need a help from the association secretary to collect the money from the customer.

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You could write a letter of request to the association secretary. Include the customer's name and the fact that they are 18 months past due. Ask for the secretary to respond to you once she has made contact or arrangements with the customer.

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How to get money, that someone claims he's lost?

The past treasurer in our association owes an amount of money. Not only is he not around, but he also claims he lost that money. H so what do we do to get that money back?

Depending on the amount, you could have him charged with grand larceny. This may have him handing over the money if he is hiding it or at least, there will be a criminal investigation to follow the money trail. If it is a petty amount you can still write him a letter and explain that it was his duty to handle the money and that he needs to return the money even if he lost it because he was responsible for the sum. You could also take him to small claims court.

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I am trying to write a letter about mortgage arrears.

The homeowner has missed 4 payments over a 6-month period. Now I am trying to set up a 3-step payment plan.

Offer three solutions:

  • Pay owed amount in full immediately.
  • Divide the amount owed and assign it equally to the next 6 months of payments.
  • If neither of the above two options aren't agreeable to the homeowner, offer to come up with a separate arrangement the outstanding payments.
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Write a letter in collecting debts in Hindi?

I need to write a letter to collect debts from a customer in Hindi

Use Google translate to compose your letter.

I want to write to a Government agency about an outstanding debt.

How do I write this letter to sound professional?

Use one of the samples above using your information and the letter will appear professional. You also could create a letterhead logo using a design with your initials at the center top of the letter.

How do I write a letter indicating work done, and no salary received?

It was agreed I would receive a monthly salary. I worked three months and have not receive a dime. I have tried: Called the principal at school which I worked and the Director of the JEEP programme. I've received no reply. I think it was caused by: Documents not submitted

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You can request a copy of the documents and if there are none available in their system, request they send you new documentation to complete and return for prompt payment. You can make the threat you'll report them to Labor Board or the Union (if you belong to one), if you feel you need to add a little fire to them.

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How can I write a formal letter to collect money owed to me for a car I didn't give permission to be driven?

I'm asking that they pay 4 months of the car note, and the insurance billed. I have tried: Sending messages via Facebook. I think it was caused by: They shouldn't have been driving the car in the first place.

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You can request the money for the car note and insurance in a letter, and give them 30 days to reply or you will take them to civil court.

See more questions like this: Hi, how do I write a letter to someone who own my money due to damaging my car?

How to write a letter to request payment from a client who owes your company?

This client has owed my company money for more than two years, I would like to know the how to write an effective letter to retrieve the money owed by the client. I have tried: I have been sending him email. I even went for a reconciliation visit, yet nothing has been done. I think it was caused by: I don't know honestly

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VisiHow QnA. This section is not written yet. Want to join in? Click EDIT to write this answer.

See more questions like this: I need to write a letter to a collection agency which owes my company money?

I need to write a letter to someone who owes me for vet bills, loss of my animal and the disposal of his remains.

A neighbor's dogs got loose in my neighborhood, dug under my fence and brutally attacked and killed my Nigerian Goat. My brother chased the dogs (3) away from the goat. The goat was rushed to University of Florida Large Animal vet and we had hope the goat would survive but the dogs tore his trachea and the poor animal had to be put down. The dogs were captured and surrendered to animal control. The owners of the Dog are responsible for the cost on the vet $1200, cremation $275, the value of the goat $150, and damages of pain and suffering. The goat was loved by all. I am just not sure how to write the letter.

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VisiHow QnA. This section is not written yet. Want to join in? Click EDIT to write this answer.

Collecting closed account check?

Hi, I have a client who purchases jewelry. She wrote checks, but her account had already been closed. Now she is having a hard time returning the jewelry to me and seems to have no intention on paying on the bad checks. How can I write an authoritative letter in order to collect either the jewelry or the money, as I'm now working abroad? Thanks a lot. I have tried: I have talked to her and she promised to pay little by little over one year, but hasn't even done that. I think it was caused by: Maybe she pawned the jewelry, and she is a swindler.

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VisiHow QnA. This section is not written yet. Want to join in? Click EDIT to write this answer.

My old boss owes me money for a refrigerator I paid for.

The fridge cost $2300, he gave me $300 in cash and gave me items when I worked for him that probably totaled another $500. I have tried: Nothing. I think it was caused by: No problem. Need help composing a letter for his records

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Dear (old boss),

Regarding the purchase of your fridge on (date of purchase) for the cost of $2,300.00. I put up the money for your fridge as a favor to you, but in all this time, I have not been properly reimbursed.

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Although you did pay me $300.00 on (date of payment or approximation), and you gave me items when I worked for you; the value of these is estimated at $500.00. This leaves $1,500 still owed to me for the purchase of your fridge.

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As this has been outstanding for a long time, prompt payment would be appreciated. I certainly don't want this situation to mar our friendship, as it was in friendship that I helped you out.

Looking forward to your reply,

(your name)

Kindly assist me in how to write an appropriate letter to my debtor?

I sold my real estate property to Ms. Trinidad last month. It is an outright sale with a Contract to Sell Agreement. The stipulation is that she will pay the balance of what she owes me and the other amounts that she agreed to pay as part of our legal transaction. We have a TIMELINE for her to make the series of payments. She is now the legal owner of that property as the Title to the hotel (Land/ Building) was already transferred to her. She keeps promising to pay even in writing, but she is not making the payments as agreed upon by both of us.

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VisiHow QnA. This section is not written yet. Want to join in? Click EDIT to write this answer.

Referencing this Article

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APA (American Psychological Association)
Write a Letter to Collect Debt. (2017). In VisiHow. Retrieved Apr 23, 2017, from http://visihow.com/Write_a_Letter_to_Collect_Debt

MLA (Modern Language Association) "Write a Letter to Collect Debt." VisiHow, visihow.com/Write_a_Letter_to_Collect_Debt Accessed 23 Apr 2017.

Chicago / Turabian VisiHow.com. "Write a Letter to Collect Debt." Accessed Apr 23, 2017. http://visihow.com/Write_a_Letter_to_Collect_Debt.

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Categories : Writing

Recent edits by: Andrea64, laliza, scholastica A.

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