Feb
Debt Collection letter plays an important role when collecting a bill amount in any successful business. One of the main aspects of the collection letter is to slowly increase the aggressiveness of the letter overtime. The first letter sent should be positive and helpful whereas the third letter should become slightly stern and show concern for the situation and it should reach a point where it is more stern and demanding.
The first debt collection letter should be a short and should not appear like a debt collection letter. It should be written in a friendly manner, one just to remind the customer that the bill is due. This message could be attached to the bottom of the invoice and can also have an acknowledgement payment in case it has already been made.
The collection letter that is being sent the second time is again a reminder letter to the customer but should be more direct and firm. It should clearly state the reason of the second letter and explain how much amount is due and what has to be done.
The collection letter that is sent the third time should again be firm and with a friendly tone but clearly not assuming that the consumer had overlooked the payment. The letter should show urgency and politely state the consequences of not making the payment and how it is affecting your business. Explaining that the customer’s credit will be affected with a polite tone and offering any other payment plan if the customer is in problem or not being able to make the payment. Use a sincere tone and persuade the customer to call and discuss the problem.Finally if there is no response after the third letter the fourth letter should state that it would be the last letter with deadline specified after which the matter would either be handed over to a recovery agent or will have it be taken to court.
Whatever is the type of collection letter the focus should be to gather the entire information about the customer’s account and persuade the customer to make the payment and maintain a healthy relationship with the service provider.