Final collection letters

If all three applications are ignored, it is reasonable to assume that the customer either cannot, or will not, settle the account. A brief notification of the action that is to be taken must then be sent as a final warning.

Specimen final collection letters

Final letter, following (a )

Dear Sir / Madam

We are surprised and very much regret that we have received no reply to the further letter we sent to you on 28 July regarding the long overdue payment of £ 105.67 on your account

Our relations in the past have always been good. Even so we cannot allow the amount to remain unpaid indefinitely. Unless the amount due is paid or a satisfactory explanation received by the end of this month, we shall be reluctantly compelled to put this matter in the hands of our solicitors.

Yours faithfully

Final letter, following (b)

Dear Sir/Madam

We are disappointed not to have received any response from you in answer to our letter of 16 March concerning non-payment of the balance of £ 105.67 outstanding on our December statement.

As our business relations in the past have always been pleasant and friendly, we are now making a final request for payment in the hope that it will not be necessary to hand the matter over to an agent for collection.

We have decided to defer this step for 7 days to give you the opportunity either to pay or at least to send us an explanation.

Yours faithfully

Final letter, following (c)

Dear Sir/Madam

We are quite unable to understand why we have received no reply to our letter of 7 April, our third attempt to secure payment of the balance of £ 826.62 still owing on your account with us.

We feel that we have shown reasonable patience and treated you with every consideration. However we must now regretfully take steps to recover payment at law, and the matter will be placed in the hands of our solicitors.

Yours faithfully

CHECKLIST

1. Use a tone which is firm but understanding

2. Mention when the payment was originally due

3. State the amount owed

4. State the penalties if any

5. Mention the grace period

6. Give a new deadline

7. Indicate the consequences

USEFUL EXPRESSIONS

First applications.

Openings

1 We notice that your account which was due for payment on..., is still out standing.

2 We wish to draw your attention to our invoice number... for £... which remains unpaid.

3 We most remind you that we have not yet received the balance of our... statement amounting to £..., payment of which is now more than a month overdue.

Closes

1 We hope to receive your cheque by return.

2 We look forward to your payment within the next few days.

3 As our statement may have gone astray, we enclose a copy and shall be glad if you will pass it for payment immediately.