In business or personal situations, you may need to recover a debt owed to you. An example of this would be a tenancy situation. You are the landlord and owed rent by the tenant. You have a legal right to collect the rent you are owed. The first step in debt recovery is to show you have tried to seek a resolution on your own by using the debt recovery letters under the four step debt recovery process before taking it to court. The first document is the Debt Reminder Letter. We have each of the four steps of the debt recovery process covered.
You are able to download the document to your computer, save it and reuse it whenever necessary. The document was drafted by a qualified solicitor to ensure it’s accuracy and reliability. The Debt Reminder Letter will protect you and help you receive your funds. The letter protects you because you are showing a court of law you have tried to obtain the debt. In showing that you took steps to recover the debt the courts if it has to go that far in debt recovery, will be more likely to award you the funds you are owed. Our tenancy example is just one area you may need to use this letter. The Debt Reminder Letter can also be used to obtain funds from vendors, customers, clients, and other individuals who owe you money in business.
The Debt Reminder Letter will state the debtor’s name and address, the amount they owe, and when you expect payment to be made. Typically a vendor, client, or tenant has a specific date they should pay their bill. When this date has been passed by two weeks or as stated in your contract with them you have the right to send out the Debt Reminder Letter. The letter will specifically state that the client has two weeks from the date they received the letter to make the payment. It can also say that if they cannot make the payment they must contact you to make other arrangements for payment.
The template document found on this site has been drafted to be courteous as this is the first stage of the debt recovery process. The tone of the letter is going to ask for action, without angering your debtor. It is designed to remind them they have an obligation to fulfil. Many times the debtor is embarrassed if they cannot pay and would rather ignore the issue than pay or simply explain. The Debt Reminder Letter gives them an opening to help them feel more comfortable that you understand. Sometimes a person may just forget what the date is and the reminder helps them take immediate action.
By offering this paper trail the courts can see you have followed the proper debt recovery protocol. It is essential you take this first step before moving on in the debt recovery process. Also, you can reuse the Debt Reminder Letter for the same client or multiple clients customising it as needed when you download the template. When you send the letter it is best to have the postal service require a signature to help prove the client received the letter.