Creditors and debtors play an important role in the financial market. Lot many transactions occur between these two groups. Though most of the times debtors try to repay their debts on time, there are some defaulters as well who do not pay the regular installments and cause problems to the creditors. Creditors have to seek legal help to sort out these problems. As a warning to the debtors, a debt collection letter is written to the debtors.
The following tips will help you to write a debt collection.
1. Phrases and words used in a debt collection letter should be chosen carefully.
2. The letter should be short, precise and up to the point.
3. All necessary information should be included in the letter. It is better to consult a legal consultant for drafting this letter.
Debt Collection Letter Sample
10th Cross, 1st Main Road,
You are one of our important customers and we have a long association with each other. It is quite unfortunate to inform you that you have been very irregular in making loan repayment installments. It is more than an year and there is no single installment. We have sent several reminders to your residential address anticipating that you will make your payments towards the loan. But you have tested our patience and we cannot give you any more time.
Our Bank representative will come to your residential address on 21st of this month. Please make yourself available at that time and in the mean time make arrangements to repay the loan amount which is Rs 2,00,745.
Hope we will have a fruitful association in the future.