This Final Payment Reminder Letter (Excluding Commercial Debts Act Interest) follows up the first late payment reminder. It requests payment by return or a written proposal to clear the debt. In the event of either of these two options not occurring the letter informs the debtor that the company may be obliged to take legal action.
Up to date and coordinated records are essential to effective debt collection. An audit trail of credit related documents will facilitate prompt payment as well as establishing the indebtedness in the event of late or disputed payments and any subsequent legal action.
A number of template agreements are available to document a proposal to settle the debt, and, failing any agreed proposal, a “letter of claim” can be sent to the debtor at the end of the grace period mentioned in this letter.