Sending out a letter to one of your debtors can be quite a task as you need to get your message across without showing any disrespect and providing all relevant information that is necessary for the debtor. Your letter needs to be composed in a polite yet authoritative manner where the debtor gets all the information clearly and you are able to create an urge for the debtor to make his or her payment on time advises Brian Linnekens who has been working within the Debt industry for the past few years.
Brian Linnekens has not only been working with debtors but also has been advising creditors about a variety of topics. Apart from that, Brian also maintains personal blogs where he provides advice to creditors and debtors regarding the various aspects of Debt management. Debt management can be quite tricky for organizations especially while collecting back the money that has been loaned out.
Letters to debtors are a usual activity in any organization that is involved in the debt collection but the letters need to be professional while sending out a clear message to the debtor about the intentions of the agency. One needs to start the letter politely with an airy greeting that tells the customer that the company really appreciates the association of the customer with their organization and is thankful for their cooperation in the past. This will put the customer at ease before he or she runs into the details of the debt.
Next you need to put in the debt details on the letter in big and bold fonts so that a client with poor eyesight does not have a problem in reading the details of the debt. The current installment needs to be mentioned along with the principal outstanding amount, the interest accrued and any extra charges that are there on the client’s account. This will create transparency and confidence among your clients that will go a long way in fostering a comfortable relationship with your client.
If the client has missed out on any payments mention it clearly on the letter and tell the customer how many times you have sent reminders to the customers that have been ignored. Don’t forget to mention the due dates of the payments that have been missed and the dates of the letters that have been sent as a reminder to the customer.
Do not flaunt your connections or power in the letter to scare the customer as it will have a negative impact on the client. Instead you can inform the client that you are transferring his or her debt to a collection agency that specializes in collecting debt from erring clients. You need to offer solutions to the client instead of scaring or instigating him. You can also break up the amount owed into smaller payments that the client is comfortable with for that specify the time and amount that needs to be paid at specific dates. Allow a grace period for the client to make the payment communication for which should be there on the letter.