This type of letter is generally written by the creditors to their debtors who have taken a loan from them for their personal use or a new business. The need for writing arises from credit sales. The traditional business policy that enhances the volume of sales is ‘Selling on credit.’ The amount is being credited once both the parties sign an agreement in which a date is mentioned by which the debtor has to make the payment of the loan on the installment basis.
Here, the sellers allow the customers a particular period for payment of dues. If the debtor fails to make the payment on time, then the creditors remind them by writing a collection letter to them for the same. Instead of sending one letter or reiterated copies of the same letter, credit departments send a series of letters.
Also. a collection letter is written to collect a refunded money on any defective product or services. It is written by the customer to the dealer so that he can collect his refunded money. Many a time, it happens that, dealers/manufacturers provide their customers with faulty services or product, for which they demand a refund for the advance payment.
A collection of refund letter should be written formally and with utmost respect towards the dealer you are writing it to. Tell them about the defect in their product/services in detail and what grievance it caused to you. Ask for the refund in genuine and proper manner, don’t be hostile.
Collection Letter Writing Tips
- First and foremost it is vital to give some extra time to the debtor to arrange funds for the payment in this letter.
- The tone of the letter should be firm and formal.
- The letter should mention the due date for the payment and also the amount.
- You must mention the repercussions which the debtor may face regarding nonpayment and also provide a last date for the payment.
- Once you are through writing the letter, please recheck the same for spelling mistakes or punctuation errors.
Collection Letter Template
Use our free Collection Letter to help you get started.
To,
______________
Date (Date on which letter is written)
From,
_______________
Sub:_______________________________________________
Dear Mr. ________________(Name of the person),
With reference to your loan for amount ___________ (Amount) taken from our Bank is due for its first installment. The last date to make the payment is _____________ (Date). As per to the signed contract by both the parties, if the payment is not made in time, we are supposed to take a legal action against you.
We would appreciate if you could advise us on the mode of payment. We hope to have a long-term association with you.
Yours sincerely’
(___________)
Sample Letter of Collection Letter
To,
Mr. Abraham George
123, Hudson lane
Atlanta
Date (Date on which letter is written)
From,
Joseph Mathew
Manager
ABC Finance Pvt. Ltd.
Sub: Collection letter for payment reminder
Dear Mr. George,
Concerning the agreement signed by you against the loan of amount $50000, I would like to inform you that your payment for the first installment is due on 15th December. I would appreciate if you could do the needful on time. I believe that you must be aware of the consequences if you failed to make the payment on time. I wish that you will abide by the terms of the agreement and will settle the loan on time.
In case you wish the payment to be collected from your place, do give us a call and our representative will do the needful.
Hope to have a sound business relationship with you,
Yours sincerely’
Joseph Mathew
Email Format of Collection Letter
To: name@email.com
From: name@email.com
Subject: Collection letter for payment reminder
Dear Ms/Mr ___________
This is with reference to the loan that you have taken from our institution vide docket number _____________ dated ____________.
We would like to inform you that your first installment is due on _________ (date) as per the loan agreement. This is a payment collection reminder for the same.
Please let us know how and by when will the payment be made to us. Alternatively, we can also send our representative to collect the payment from you at a time convenient to you.
To reiterate that if the payments are not received before the due dates, we will have to take legal action.
We hope to have a pleasurable business relationship with you.
Best regards,
(Name of signing authority)
Debt Collection Letter Template
Use our free Debt Collection Letter to help you get started.
From,
__________
__________
Date :_________(date on which the letter is written)
To,
__________
__________
Subject: Reminder of payment due
Dear Mr./Ms./Mrs. ___________(Name),
I am writing this letter on behalf of ________ (Creditor) regarding your debt. This is to remind you of the debt payment to be made. An amount of ________ (Amount) was due on ________ (Date). Since no payment was made, the amount is now considered overdue and we request you to make the payment on or before ________ (Deadline).
We would like to inform you that in the case of failure to make the payment before the decided deadline, legal actions will be taken. However, we believe that the situation will be solved as soon as possible.
Meanwhile, feel free to contact us for any queries related to the debt amount or payment procedure. Please find attached a copy of the contract and details of the invoice. Our contact details have been included as well.
Thanking you,
Yours Sincerely,
__________ (Name)
__________ (Signature)
Sample Letter of Debt Collection
From,
Jay Pritchett,
Finance Manager,
GN Bank,
New York.
15 November 2016,
To,
Grace Simons,
34 Raven Street,
New York.
Subject: Reminder of payment due
Dear Ms. Simons,
I am writing this letter on behalf of GN Bank regarding your debt. This is to remind you of the debt payment to be made. An amount of $3,200 was due on 13 November 2016. Since no payment was made, the amount is now considered overdue and we request you to make the payment on or before 30 November 2016.
We would like to inform you that in the case of failure to make the payment before the deadline decided, legal actions will be taken. However, we believe that the situation will be solved as soon as possible.
Meanwhile, feel free to contact us for any queries related to the debt amount or payment procedure. Please find attached a copy of the contract and details of the invoice. Our contact details have been included as well.
Thanking you,
Yours Sincerely,
Jay Pritchett,
Finance Manager, GN Bank.
Email Format of Debt Collection Letter
The following is the Email format that should be followed while writing a Debt Collection Letter.
To: name@email.com
From: name@email.com
SUBJECT: Reminder of payment due
Dear Ms./Mr./Mrs. _________ (Name),
I am writing this letter on behalf of ________ (Creditor) regarding your debt. This is to remind you of the debt payment to be made. An amount of ________ (Amount) was due on ________ (Date). Since no payment was made, the amount is now considered overdue and we request you to make the payment on or before ________ (Deadline).
We would like to inform you that in the case of failure to make the payment before the deadline decided, legal actions will be taken. However, we believe that the situation will be solved as soon as possible.
Meanwhile, feel free to contact us for any queries related to the debt amount or payment procedure. Please find attached a copy of the contract and details of the invoice. Our contact details have been included as well.
Thanking you,
Yours Sincerely,
__________ (Name)
__________ (Designation)
Collection Of Refund Letter Template
Use our free Collection of Refund Letter to help you get started.
To,
______________
______________
Date __________ (Date on which letter is written)
From,
______________
______________
Sub: ________________________________
Dear Mr./Ms ____________,
I am writing this letter in regard of defective product/services _____________ (write name of the product and defects that came with it) provided by you. I am one of your oldest customers so I believe this is just a mistake. However, it has still caused me a loss.
With this letter, I am sending you the details of the product & its defects and hope you refund the money at the earliest. I have even written my address below, in case you would like to see the product for yourself and then decide.
You are a very trusted dealer. I hope to hear from you at the earliest. Apologies if it sounded rude to you in any way.
Thanking you,
Yours truly,
(_____________)
Sample Letter of Collection Of Refund
To,
Mr. Abraham George
Amazon Traders,
Atlanta
Date: 2nd January 2010
From,
Joseph Mathew
123, Hudson Lane,
Atlanta
Sub: Collection Letter For Refund.
Dear Mr. George,
I am writing this letter in regard of defective Samsung J7 handset provided by you. It is one of the latest models on Samsung and so I bought it from you just a week ago. However, it isn’t functioning well. The sound card is completely trashed it seems and the phone keeps hanging whenever I try to download an application. Not only this, even the accessories that came with it are defective.
I am one of your oldest customers so I believe this is just a mistake. However, it has still caused me a loss.
With this letter, I am sending you the details of the product & its defects and hope you refund the money at the earliest. I have even written my address below, in case you would like to see the product for yourself and then decide.
You are a very trusted dealer. I hope to hear from you at the earliest. Apologies if it sounded rude to you in any way.
Thanking you,
Yours Sincerely,
Joseph Matthew
Email Format of Collection Of Refund Letter
The following is the email format of the Collection of Refund Letter.
To: name@email.com
From: name@email.com
Subject – Collection for Refund Letter.
Dear Mr./Ms ____________,
I am writing this letter in regard of defective product/services _____________ (write name of the product and defects that came with it) provided by you. I am one of your oldest customers so I believe this is just a mistake. However, it has still caused me a loss.
With this letter, I am sending you the details of the product & its defects and hope you refund the money at the earliest. I have even written my address below, in case you would like to see the product for yourself and then decide.
You are a very trusted dealer. I hope to hear from you at the earliest. Apologies if it sounded rude to you in any way.
Thanking you,
Yours truly,
(_____________)
Leave a Reply
You must be logged in to post a comment.