We shared a sample 2nd and 3rd reminder letter for a collections follow up process.
https://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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