This document provides guidance on writing collection request letters. It discusses the different stages in a collection letter series, from initial statement of accounts to reminder letters to inquiry letters and finally appeal/urgency and ultimatum letters. Each successive letter is meant to become more direct and insist on payment if prior letters do not receive a response. The document also provides tips for writing an effective first collection letter, such as including the amount past due, previous collection attempts, a summary of the account, instructions for next steps, a specific due date, and contact information.

1. UNIVERSIDAD CRISTIANA DE
PANAMA
WRITING AND DOCUMENTATION
COLLECTION REQUEST LETTER
Student: Margarita Calderon Magister Israel Torres.
Id. 8-935-1115

2. WHAT IS A COLLECTION REQUEST
LETTER
• Written notification of the pending amounts, meant to prod past-due customers to
make a payment. Collection letters are sent usually one after another, with the tone
and language getting more direct with each successive letter, until at least some
payment is received.
• An effective letter of collection achieves its purpose without destroying the
customers' goodwill that was painstakingly acquired over the years. Also called
dunning letter. Not to be confused with collection letter.

3. STAGES OF WRITING COLLECT
LETTER
• Dunning letters are usually written in a series. In each successive stage of the
collection series, the message becomes stronger or insistent. The series contains the
following:
• Sending statement of accounts
• Reminder letter
• Inquiry and discussion letter
• Appeal and urgency letter and
• Ultimatum and warning letter

4. SENDING STATEMENT OF ACCOUNTS
• Statement of account is the first notification that the customer receives after
purchasing goods on credit. Companies usually send the statement before the due
date of payment. Sending the statement of account has become a common
business practice. Its purpose is to inform the customer about the due amount and
due date of payment. It also acts as means of maintaining contact with customers.

5. REMINDER LETTER
• Collection letter series actually stats with a reminder letter. If the customer does not
pay the bill in the due date, a reminder letter is sent assuming that the customer has
forgotten to pay. Therefore, the seller reminds the customer that he has an
outstanding account with the company and the payment has become due.
Companies usually send several reminder letters. The first reminder is sent within a
week after sending the statement of account. The second reminder is generally sent
after a week or a fortnight of sending the first reminder. Thought the first reminder
letter simply reminds the customer about the bill, successive reminder letters
courteously ask for payment.

6. INQUIRY AND DISCUSSION LETTER
• An inquiry and discussion letter is sent if the customer gives no response to the
earlier letters. This letter is written assuming that the customer is either unwilling or
unable to pay. Therefore, the goal of writing an inquiry letter is not only requesting
the customers to pay the bill but also seeking the reasons for non-payment. This
letter is written in a sympathetic manner so that the customer becomes willing to
write to the seller. If the customer is really in trouble, alternative payment schedule
can be arranged. Depending on the type of customer, discussion letters range in
number form tow to five or more. However, successive letters become progressively
stronger and the last discussion letter ends with a hint of negative appeal.

7. APPEAL AND URGENCY LETTER AND
• If the previous collection attempts have failed, sending an appeal and urgency letter
is the next step. This stage clearly assumes that the customer is reluctant to pay the
outstanding bills. Therefore, the seller strongly requests the customer to pay the bill.
This letter is not rude but is stronger in tone. In this letter, a deadline of payment is
mentioned. However, the seller can also seek explanation for non-payment is
mentioned. However, the seller can also seek explanation for non-payment. If the
customer is in real trouble, the seller can arrange an alternative payment schedule.

8. ULTIMATUM AND WARNING LETTER
• This is the final stage of the dunning letter series. If the customer does not respond
to any one of the previous letters, then the ultimatum letter is sent. A distinct
feature of this letter is that it indicates possible legal action unless payment is made
promptly. In this letter, the customer is given a deadline of payment. At the same
time, this letter conveys the possible legal action or consequence if the customer
fails to meet the deadline.

9. FINDINGS “HOW TO WRITE A
COLLECTION LETTER”
• This first collection letter should contain the following information:
• Days past due
• Amount due
• Note previous attempts to collect
• Summary of account
• Instructions- what would you like them to do next?
• Due date for payment- it is important to use an actually date, not “in the next 7 business
days” as this can be vague
• Your contact information

11. THANK YOU FOR YOU ATTENTION!