Financial Difficulties Collection Letter

Financial Difficulties Collection Letter is written by a collection agency to the defaulting parties who are not on time with their payments. These letters are written to remind them about their outstanding dues and also to offer them options to pay back in various installments or special plans. It helps them with various ways like renewed installments plan, extension on payment due dates, etc and offers them a chance to settle the dues. However, if the defaulting party still doesn't respond, these letters also serve them with possible legal implications thus pressurizing them to pay back. These agencies work for various banks and credit card companies.

When sending such a letter to a party for the first time, it should be friendly and written in a manner to just remind the party about his due payments. This is written in assumption that the payer has not paid his installment owing to some financial difficulties. In such circumstances, a polite letter along with the payment schedule with the current outstanding amount should be sent to him reminding him to pay soon.

Following is a sample letter describing the proper procedural way of writing the first financial difficulties collection letter.

Financial Difficulties Collection Letter Sample

From

Hank Schrader,
Quick Recovery Services
112 Bullock Street
NJ 07712
(732) 548-9001
hank.schrader@example.com

14th November,'11

To

Guy Isaac,
71st Mildred Avenue,
NJ 07712
(800) 645-0081
guy.isaac@example.com

Subject- Reminder for your overdue monthly installment from last month

Dear Guy,

I am writing to you this letter in order to inform you about your lapsed payment. You have missed the last date for your monthly loan payment, which was due for October 12th.

I would like to inform you that the loan payment on your car is overdue for the month of October. The details of the loan are attached here with the letter along with your outstanding payable amount details. Please be noted that you should pay the sum of last month by 16th November without any further delay.

Saying this, let me also add here, that in case you are going through some financial difficulties, you can write to us about it and accordingly, we will provide you with a customized payment plan for your future payments. This plan will be tailored for you keeping in mind the scale of your financial problem and how much you can pay in a month. We can always vary the EMI amount on your payment or change payment schedule as per your convenience.

Apart from this, we have certain preset payment plans structured for the people. These can also be referred to by you, before going in for a customized payment plan. I am attaching a copy of the same here for you. But to avail for any of such services, you will have to present to us all your relevant documents in a meeting. After a careful study and consideration of your financial problems, we will forward a copy of the same to your bank that will prepare a new payment plan for you.

If you have any questions pertaining to this topic, you can call us or just drop by at our office (the address has been provided above).

Also please don't skip this grace period for payment, till 16th November '11. We are sure that you have a good reason for not paying till now. Please send us an application if we could help in any manner.

Hoping to hear from you soon.

Thanking you
(Signature)
Hank Schrader,
Quick Recovery Services

It is important to observe the kind of words and tone used here. Since the person has defaulted for the first time, the collection agency person has written a letter sounding helpful and willing to listen. The defaulter may have some serious problem because of which he fails to make the payments. Your first collection letter should always be like this as if you are trying to understand the other party's problem and depending on that, you may offer help. Also, you can refer to Sample Collection Letter writing tips and tips for writing Bad Debt Collection Letter.