The Collection Letter from Attorney may also include a deadline for payment, usually within a short period of time, such as 10-14 days.
The purpose of a collection letter from an attorney is to impress upon the debtor the seriousness of the situation. It indicates that the business is willing to take legal action to collect the debt if necessary. In some cases, the threat of legal action may be enough to prompt the debtor to pay the debt in full.
In addition to demanding payment, a letter may also include legal language explaining the consequences of non-payment. This may include references to state and federal laws regarding debt collection, as well as the possibility of legal action, wage garnishment, and other consequences. The letter may also include a disclaimer indicating that it is an attempt to collect a debt and that any information obtained will be used for that purpose.
While a letter can be an effective tool in collecting a debt, it is important to follow certain guidelines to ensure that it is legal and effective. A federal statute called the Fair Debt Collection Practices Act (FDCPA) controls how debts are collected. The FDCPA sets guidelines for how debt collectors, including attorneys, can communicate with debtors and what information they can request or disclose.
Sample Collection Letter from Attorney Template with Examples
If you are struggling to collect outstanding debts from your clients, a collection letter from an attorney may be the next step in your efforts. These letters can be intimidating and help to convey that legal action may be taken if the debt is not paid. However, hiring an attorney to draft a collection letter can be expensive. Instead, consider purchasing a collection letter template from templatediy.
If the debtor does not respond to the collection letter from the attorney, the business may consider taking legal action to collect the debt. This can entail bringing legal action against the debtor or winning a judgement. While legal action can be costly and time-consuming, it may be necessary in cases where the debt is significant and the debtor is unresponsive to collection efforts.