delinquency follow upWe shared a sample 2nd and 3rd reminder letter for a collections follow up process.

http://faoblog.com/processes-ar-collections-follow-6/

Here are samples how a fourth and final reminder may look like and the note thereafter to your client’s legal department / attorney to initiate legal action.

Forth Reminder:

Customer Name,

Address

Dear Sirs,

We very much regret that the sum of $.XXXXXX  has been overdue since long and in spite of our repeated requests and reminders you haven’t remitted the amount or even responded to our letters / not honored you promises to remit and clear the amount.

If we do not receive the above amount within a week of the receipt of this notice, we shall be constrained to resort to legal proceeding and you shall be held liable to the consequences.

Yours faithfully,

———————————————————————-

Letter to legal department

Legal Department / Attorney

Your client

Address

Dear Sirs,

This is to inform you that <Customer Name> has an overdue amount of $ XXXXX, which has not been cleared even after repeated reminders and follow up as per details given below:

First Reminder:               MM-DD-YYYY

Second Reminder:          MM-DD-YYYY

Third Reminder:             MM-DD-YYYY

Fourth Reminder:           MM-DD-YYYY

1st Call Reminder:            MM-DD-YYYY

2nd Call Reminder:          MM-DD-YYYY

3rd Call Reminder:          MM-DD-YYYY

You are requested to initiate the legal proceedings for the recovery of the amount. The amount of penalty and interest debited to the account is $ YYYY.

Yours ever in service,

Yours faithfully,

———————————————————————-

Once this is done, for the accounting group, you will need to move this amount to “Bad Debts” and provision for the same.

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