When a client has outstanding debts that have not been resolved, it may become necessary to send a letter notifying them of your intention to forward their account to a collections agency. Below is a sample letter that an attorney might use to inform a client of this action. This letter is a formal notification and should be clear, direct, and professional.
Letter to Client Regarding Collections
[Attorney’s Name][Law Firm Name]
[Law Firm Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date] [Client’s Name]
[Client’s Address]
[City, State, ZIP Code]
Subject: Notification of Account Sent to Collections
Dear [Client’s Name],
I hope this message finds you well. I am writing to address your account with [Law Firm Name], which currently shows an outstanding balance of [Amount Owed]. Despite our previous communications regarding this matter, the balance remains unpaid.
As per the terms of our agreement, payment was due on [Original Due Date]. Our records indicate that multiple attempts have been made to contact you regarding this outstanding balance, including letters sent on [List Dates of Previous Correspondence].
Unfortunately, as we have not received payment or a proposed payment plan, we find it necessary to proceed with forwarding your account to a collections agency. Please be advised that if we do not receive payment in full or a satisfactory payment arrangement by [Final Deadline Date], your account will be sent to collections on [Date to Send to Collections].
We strongly urge you to contact our office immediately to discuss your account and prevent this action. Our goal is to help you resolve this matter amicably. Please contact me directly at [Attorney’s Phone Number] or [Attorney’s Email Address] to discuss potential solutions.
Thank you for your prompt attention to this important matter.
Sincerely,
[Your Signature (if sending a hard copy)][Your Printed Name]
[Attorney’s Position]
[Law Firm Name]
Tips for Writing a Collections Notification Letter
- State the Amount Owed Clearly: Specify the exact amount the client owes to avoid confusion.
- Reference Previous Communications: Mention prior attempts to collect the debt to demonstrate due diligence.
- Provide a Clear Deadline: Set a final deadline for payment to give the client one last opportunity to settle the account before collections.
FAQs on Sending Clients to Collections
- What should be included in a collections notification letter?
The letter should include the amount owed, previous attempts to collect, a final deadline, and a warning about sending the account to collections. - Is it necessary to send a letter before forwarding to collections?
Yes, it’s considered best practice to notify the client and give them an opportunity to settle the debt before involving a collections agency. - What if the client responds after the deadline?
If the client responds with a payment or plan after the deadline, you can decide whether to proceed with collections based on their proposal and your firm’s policy. - Are there legal considerations when sending a client to collections?
Yes, ensure compliance with the Fair Debt Collection Practices Act (FDCPA) and consult legal advice if necessary. - Can a payment plan prevent collections?
Yes, often a mutually agreed-upon payment plan can prevent the need for collections if the client adheres to the terms.