Guarantor, Final Letter trying to Collect
Date:
Name
& Address of party written to
Dear
Sir or Madam:
We
wrote you 3 weeks ago notifying you we are the holder of your Guaranty of the
debts and obligations of _____________ (Name of Person) whose debts are being
Guaranteed ("Debtor") to us in the amount of $_____________________,
a copy of which is enclosed.
The
Debtor has defaulted in payment to us.
In accordance with the terms of the Guaranty, we hereby demand payment
in full of the outstanding debt in the amount $_________________________,
together with interest thereon at the rate of ___ Interest as provided for in
the Agreement, from this date forward.
We
are sorry the matter has reached this stage but find no alternative since we
are unable to collect these funds from the debtor. We were willing to discuss payment plans but
you did not respond to our offer.
Therefore, we are now required to turn this matter over to our
collection attorney, an expensive matter for you since our attorney will be
paid for by you, per the attached guarantee.
Please
note we are obligated by law to inform you any information received will be
used to collect this debt.
If
you wish to reconsider your position, and avoid additional legal, interest, and
penalty charges, and they will mount up fast, please contact us
immediately.
If
we do not hear from you in 10 days, we turn this over for to our lawyer to reduce
this debt to a Court Judgment to be enforced against the original debtor and
yourself.
Yours
very truly,
_____________
Authorized
Employee or Individual
cc
Original Debtor or Debtors
Guarantor, Trying to
Collect from
Review List
This
review list is provided to inform you about this document and assist you in its
preparation. Collecting money is more a
sales function than anything else.
However, this letter goes out when the party has not responded to your
first letter. Since they are stonewalling
it, you can now move quickly through the collection process knowing you tried
your best to collect in a more amicable fashion.
If
you have started this process early in the default stage, then the guarantor
may still respond on this second notice.
It is our advice that you wait another 14 days, and then proceed
expeditiously since you can always have your collection agent or lawyer settle
the matter as the process unwinds.
- Be sure you include the legal warning that all information received will be used to collect a debt. Be sure to orally advise them if you speak with them.
2.
Sign the letter and mark 14 days off to send a
second demand letter (14 days provides a little extra time for the mail and
delays).
- We recommend the person handling the matter sign the letter personally and include a direct phone line and extension as applicable. The personal touch gets money in the door, in our experience, as well as being a politer way of operating.
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