Collection letters final warning of collection procedures

After your notification of your intention to commence collection procedures, your options are defined. If you haven't received payment you are effectively obliged to start the collection process.

When advising commencement of collection procedures:

Ensure compliance with law
Do not use threatening terminology
State commencement of collection
Remind the client payment will cease any collection actions

Collection processes are legal processes.

Collection agents are required to conduct these processes in accordance with applicable laws.

If collection procedures fail, the next process is legal action.

Example

Business letterhead

Addressee

Your reference
Our reference
Contacts

Dear

Overdue account- Notification of commencement of collection procedures

If you have already paid this account, please disregard this notice.

I refer to our previous notices regarding overdue account detailed below.

Please note that our policy is to institute collection procedures upon failure to respond to two reminder notices.

As no response has been received to previous notices, collection procedures for the account detailed below, (including overdue account charges), have now been commenced.

Goods purchased:
1 Mega Breeze Air conditioner       $699.90
1 Persian Rug, Axminster               $150.00
1 Delivery                                      $ 40.00

Amount due:                                 $889.90
Overdue account charges            $400.14 (15% per month x 3 months)

Total amount payable                 $1300.04

Please contact us on the above phone number or email if you require further information.

Yours sincerely
Sign
Title
Date

Disclaimer

Please note:

This text is intended for advisory and guideline purposes only.

Any business letter can become a legal document, so check your content properly before issuing.

Any executable or statutorily defined document should be checked for compliance with legal requirements, and you should seek legal advice regarding its contents.