A debt collection letter is a document mailed by a creditor (or collection agency) to a debtor demanding payment for an unpaid balance. The letters can serve as a general reminder, or can be used for informing the recipient that legal action will be taken against them should the debt remain in default any longer. When sending a debt collection letter it is important that the sender receive verifiable proof that the recipient was delivered the notice. This can be accomplished by using certified mail (a service provided by the USPS).
How to Write
Step 1 – Sender (“From”) Information
In the top four (4) lines of the letter, type or write the following:
- The full name of the creditor (sender);
- The company the sender owns (or is employed by, if any);
- The street address of the creditor; and
- The city, state, and ZIP code of the creditor.
Step 2 – Date
Beneath the creditor’s mailing information, enter the date the letter is being sent to the debtor. The date should be written in the following format:
[Month] [Day], [Year]. Ex: January 1st, 2022.
Step 2 – Recipient (“To”) Information
The recipient’s mailing information should be written in the same format as the sender (creditor). Enter the:
- Full name of the recipient (debtor);
- The recipient’s company name (if any);
- The recipient’s street address (including unit number, if any); and
- The recipient’s city, state, and ZIP code.
Step 3 – Letter Contents
After “Dear”, enter the full name of the recipient. Alternatively, their first name can be used.
Then, after “Due Amount”, enter the total amount ($) the debtor owes the creditor. If the debtor
Step 4 – Payment Due Date
Enter the date (mm/dd/yyyy) that the recipient must pay the “Due Amount” to prevent the creditor (sender) from sending the debt to collections.
Step 6 – Signing
While optional, it’s recommended that the sender sign their name onto the letter. This adds to the letter’s credibility, increasing the likelihood that the recipient takes its message seriously. Beneath their signature, they should type or write their full name, followed by their position at the company (if applicable).