Flathmann & Stern

Debt Collection Letters

Debt collection letters can be very productive if they are created properly.  The only problem is, that many people do not know how to write a proper collection letter and in turn do more damage than good.  A good collection letter can be like a silver bullet against bad debtors.  If you follow these guidelines you should have no problem making professional and effective debt collection letters.

1.  Write a specific letter stating the amount owed and timeline to pay off the debt.

2.  Make a strong stance and mention harsh penalties that will incur if debt is not paid off.

3.  Use professional language and do not slander the debtor.  The more professional you can be, the better your chances of collecting the debt.

4.  Mail the letter certified to ensure that the debtor receives it.

5.  After 5-7 days after mailing the letter, follow up with a phone call to the debtor to discuss payment terms.

The letter is required by law if you are going to pursue court actions against the debtor and it gives a chance for the weight of not paying to sink into the debtor’s mind.  If you call up and demand payment, most people and especially debtors will be very defensive and will most likely not pay.

A letter is the more effective approach because it gives the debtor time to think of corrective actions to repay the debt.  Also, you must make sure to follow up the letter with a phone call.  They go hand in hand and without the phone call, then the chances of collecting the debt are minimal.  The purpose of the phone call is to keep the debtor accountable.  Most debtors will not pick up the phone and call and admit their mistakes, but if you call them and mention the letter you will most likely get your money back.

Good luck with your debt collection letters.  They are a helpful tool for collecting old accounts.  Best of luck.

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