How to Write Letter

Pre Collection Letter

Pre-Collection Letter also referred as 'PCL' is generally sent to the delinquent members by a party other than the creditor. The basic idea of this letter is to inform the debtor that if they fail to pay their past due immediately, their creditor may hand over their account to a third-party for full collection. This pre collection letter sometimes works as most of the debtor settles their account in order to avoid full collection. Hence PCL is a cost-effective way to motivate at least some percentage of the debtors.

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The party will send out a series of three letters to the debtors. Each letter will include the language instructing the debtor to settle their debt or to contact the credit union if they want to avoid further collection activity. Each letter is written with a greater sense of urgency that the previous letter sent.

Pre-Collection Letter Sample (1)

Party Name
Name of the Firm/Agency/Company
Address
City, State, Zip Code

Date

Delinquent Member Name
Address
City, State, Zip Code

Dear (member name),

What else can we do to convince you to pay your delinquent account? We have tried every possibility of extending the payment period, from making the monthly payment smaller, getting help from lender and discussing this matter with you. However, we have exhausted our own resources.

We have to hand over your account to the outside company. We have consulted with our collection agency and they have assured us about the recovery. We don't want to take this to the courts and, therefore, request you to pay the outstanding balance soon.

If your truly want to avoid legal action, send us a cheque for $XXX.00 on or before (insert date).

Sincerely,
(Writer's Name)

Pre-Collection Letter Sample (2)

Dear (member name),

Now is the time to draw a line between action and preaching. Within next ten days, our collection agency will have to take action to collect the balance on your account.

We have tried every possible means in our stride to avoid this action. A business can't run being sympathetic. It runs on trust and cooperation and that's what you fail to practice.

We expect a payment from you on or before (insert date).

Sincerely,
(Writers' Name)

Pre-Collection Letter Sample (3)

Dear (member name),

We have given you enough opportunities and time to settle your account by informing you several times by letter and phone calls. We have also discussed about the arrangements for the payment of your account. The following is the statement of your account which is still pending:

    Invoice Number: XXXX
    Amount: $XXX.00
    Due Date: XX, XX, 2010

We have failed to see any sign of cooperation from your side. Therefore, we must insist on immediate payment. You can send the cheque drawn in our favor with the help of the self-addressed envelope enclosed with this letter.

Sincerely,
(Writer's Name)

The pre-collection letters are always written in a series of three letters. However, the need to write the second two is very rare because few debtors settle their accounts after receiving the first one out of the fear of facing legal action

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