Past Due, Final Notice
Dear
________________:
We
have tried every approach we could think of to collect this debt. We have absolutely no interest in turning
this over to a collection agency or an attorney. However, we don’t know what other choice your
nonpayment gives us.
Please
send us a check for the full amount or call us to set up a suitable repayment
plan so we can avoid the collection route.
That is a difficult and expensive approach for all concerns. Besides which, we would like to retain you as
a customer and get our relationship back on a current and paying basis.
Please
call us immediately to resolve this matter.
If you do not call, or work out suitable arrangements within the next 10
days, we will be forced to turn this over for collection which does neither of
us any good and will be a disappointment to us all.
Hoping
for your prompt payment and/or quick response.
With
best regards,
________________
Employee
Authorized
Past Due, Final Notice
Review List
This
review list is provided to inform you about the document in question and assist
you in its preparation.
1. This
is should be your final notice prior to turning the matter over to your lawyer
to write a nasty letter or a collection agency to collect this debt. This should be a Sales letter—you are trying
to motivate the recipient to pay up.
Most late payers are pressed for cash.
Your objective in this letter is to motivate the pressed buyer to put
your invoice in the “to be paid” file.
The best way to do this is to offer to put the customer on a payout plan
so they start working down the debt. You
are, of course, in the strongest position if they “need” more from your
firm. If this is the case, you can
usually get them to pay for new goods and apply the payments towards old
invoices. Over time this generally can
work to get the debt back into alignment while keeping an active customer, the
best of both worlds.
2.
This
is not the time to try to “be right” and sermonize. Most people will pay if they can pay; their
problem usually is they have more bills to pay than money to pay it. They are more apt to pay the firm but nice
than the firm but angry and sermonizing (they know they are late; they don’t
need you to remind them at this stage).
3.
In
summary, this letter requires a business approach to encourage the nonpaying
debtor to get back in the paying habit.
Work hard to make this happen.
One way to approach the matter is to recognize that by the time you
reach this point, any money is “found” money.
If you take this approach, you can back off the demands and accept what
they can do as opposed to what you would like them to do. If you do this, you generally improve your
chances of collecting most if not all of what is owed your firm.
2. Laws vary from state to state and change
over time. Before using this document,
consult your lawyer for advice on other rights or obligations you may have.
3.
Keep a copy of this letter in your files for this account.
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