Alternate Collection Letter
If you are doing a business, then you must know that most businesses do not work without credit. To develop healthy relationships with the customers, you have to work on credit with them. However, the drawback of working on credit is that some customers fail to make the payment on time. Moreover, there are customers who never make the payment until they are threatened by taking a legal action against them. In such case, Alternate Collection Letter is sent to them to tell that the company plans to take a legal action, if the customer does not respond till the final deadline.
The first paragraph of the letter should clearly state that the customer’s account is added in defaulters list. Moreover, you can tell that the company plans to opt for legal action against the customer. In the second paragraph, show some leniency by giving the customer some more time to clear the dues. Meanwhile, threaten him if he fails to make the payment before the deadline, he will have to face the court.
Instructions
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Sample Alternate Collection Letter:
Danny Lee
Senior Executive
ABC Company
411 Third Avenue
Sunnyvale, CA
January 11, 2013
James Anderson
Manager
XYZ Company
506 First Avenue
Sunnyvale, CA
Dear James Anderson,
It is to inform you that your account has been added to our defaulter list, as you failed to make the payment before the time duration you were allowed. This is not the first time that you failed to clear your dues on time. As we had a long-term business relationship among us, we tried our best to accommodate you as much as possible. However, our credit department has now decided to refer your account to the attorney for legal action.
We still hope that you will clear the dues as soon as possible, so that we do not need to take any kind of legal action against you. You now have 15 days to respond to this letter. Otherwise, we will not have any choice other than referring to our attorney to take legal action against you.
Sincerely,
Danny Lee -
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Template of Alternate Collection Letter:
[Sender Name]
[Title]
[Company Name]
[Street Address 1]
[Street Address 2]
[Date]
[Addressee/Recipient Name]
[Title]
[Company Name]
[Street Address 1]
[Street Address 2]
Dear [Addressee/Recipient Name],
According to our payment policy, your account has been set under default category. This is not the first time that your payment has entered the default section. Due to our long-term business relationship, we allowed you maximum time to clear the payment. However, you still failed to clear the account, which forced the [Name of Department] to make a decision to contact attorney for legal action.
Yet, we do not want the business to happen that way. Therefore, we still want you to clear the dues within [Number of Days] days. Or else, we will have no choice other than to contact our attorney, who will file a case against you for the deferred payment.
Sincerely,
[Sender Name]
