Posted by Kari Schaffner on 4/1/07 10:30am
Msg #183229

Collection Letters...

I am spending my Sunday morning working on collection letters - fun, fun, fun. I have a format that I currently use (from the NNA - I know...don't kill me) but am wonding if anyone is willing to share your format?? Just wondered if there was something better than what I am using...

Happy Sunday!!

Reply by Kevin/Ct on 4/1/07 10:40am
Msg #183233

I have been doing collections work for 22 years. The collection letter is a prerequisite to initiating litigation. Customarily the client will ignore you. So do the minimum required in order to collect.

Briefly recite the services for which you were hired. Indicate that you have fully performed the services for which you were hired. Indicate the outstanding balance that you are owed. Demand payment within 5 days, or that you will refer the matter to collection. Send the letter to the client by certified mail return receipt requested.

If you do not receive payment or some form of acceptable payment plan from the client within 5 days...put it into collection.

Reply by Stoli on 4/1/07 11:14am
Msg #183236

What length of time is "past due" to you? n/m

Reply by Kevin/Ct on 4/1/07 12:54pm
Msg #183246

Re: What length of time is "past due" to you?

The letter is usually required in order to suceed in litigation for collection, but the delinquent client generally ignores the demand either because it is unwilling or unable to make payment. Therefore, I usually keep the time period very short...5 days from the date of the letter. Then I begin litigation, and hit the client for court costs on top of the outstanding balance of the bill for services.

Reply by Kevin/Ct on 4/1/07 1:15pm
Msg #183247

Re: What length of time is "past due" to you?

If you are referring to the length of time that the bill becomes due before putting it into collection...I have a 30 day turn around requirement after the closing for payment...at which time the bill is due. I generally send two emails within a week following and/or make a telephone call. If there is no response, I then send the demand letter with five days deadline to make payment. If there is no response...the matter goes to litigation.

Reply by Brenda/CA on 4/1/07 7:00pm
Msg #183275

Kari check you email n/m

Reply by Brenda/CA on 4/1/07 7:01pm
Msg #183276

Re: Kari check you email s/b "your" n/m