These sample collection letters show how collection correspondence escalates with each contact. Because this site focuses more on business to consumer, these samples are written for the consumer. Perhaps you're a business owner needing to collect on a returned check or a past due account for services provided. These letters can be edited for your specific business and collection needs.

You may wonder why I've included sample collection letters on a marketing web site. After all, collections isn't marketing. It doesn't bring in new customers. In fact, who even wants to do business with those collections deadbeats?

If you talk to a collections professional, you'll most likely hear a different perspective. Sometimes, a person who can't pay a bill has a legitimate reason. Did you know that nearly 50% of bankruptcies are due to medical reasons? Sometimes, a hard-working, responsible person finds himself in difficult circumstances through no fault of his own. When that happens, if you work with that person and treat him with dignity, you stand a much better chance of receiving payment. Also, when the person emerges from his difficulties, he may very likely be one of your most loyal customers -- one who tells many others what a great company you are.

Now, I realize there truly are deadbeat customers. That's why my sample collection letters include more forceful third and fourth versions. But, in the early stages of collection, be careful to temper your efforts. Make an attempt to understand the situation, before you come out with both guns drawn.

Send the first “friendly reminder” letter. If this letter doesn’t result in a response, call the person if possible to assess the situation. Make notes about the call, such as the date, if you reached the person and any details of an agreed upon resolution. You may develop a payment plan, with specific due dates. From this point, if payment isn't collected, you’re ready to begin sending some variation of these sample collection letters.

Collection Letter for Missed Payment – This letter is a friendly reminder of a late payment. You will need to determine how soon after the missed payment you want to send this letter.

Collection Letter #2 – You received no response after the first letter. You tried to call the person. You left messages and received no return call. Continue your collection process with letter #2.

Collection Letter #3 - If, after the above steps, you aren't seeing any attempt at payment, proceed to letter #3. The tone and urgency in this letter escalates.

Collection Letter Final Notice - Okay, you may now be in the "deadbeat" zone. If you have been communicating with a person, and you feel he or she is truly trying to pay, you might want to continue working with him or her. However, if the person isn't returning calls and seems indifferent to paying, you would move on to this final notice letter.

Collection Letter for Agreement Default – Somewhere along the line, you've talked to the customer. He or she agreed to a payment plan, but missed the payment. You could then send this letter with a follow up phone call.

Collection Letter for Returned Check – This letter notifies a customer of a returned check.

Collection Letter for Returned Check 2nd Notice – Use this letter when a customer has not responded to your first notice of a returned check.

With each action or contact you make, keep detailed notes including dates.

Nonpayment because of a serious illness or lost job may be handled with greater patience, meaning you may not use each of these sample collection letters. Nonpayment for no identifiable reason may result in use of each letter with an eventual path to an attorney or collection agency. Even though collections isn't truly marketing, your relationship with customers is. The collection process can involve dealing with customers at their most personal level. It's important to evaluate each situation and handle the communication accordingly.

Other Collection Letter Tips

Collection letters in particular should not be long and rambling. For the greatest impact, they are brief, to the point and nonemotional. Your goal is to get attention and payment, without alienating a customer (and possibly never getting payment) with a threatening letter. The sample collection letters I provide can help you do just that.