Demand for Money Owed Collection Letter

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									This document provides a sample template for a collection demand letter to be used by
an individual or business seeking to collect delinquent accounts that are past due. For a
company or individual that is owed money, it is essential to document any request for
payment in writing. This letter is intended to provide standard language and can be
modified to fit the needs of any individual or company attempting to collect payment on
a delinquent account.
                                                                                    MAY 14, 2013

Sender’s Address

Recipient’s Address

Account Number:

         Re: Demand for Payment and Account Cancellation

Dear _________,

As you are aware, your account with _________ is past-due in the amount of _________. The
past-due funds are due and owing from you to in exchange for goods supplied pursuant to
Purchase Order _________ and as reflected in Invoice _________ dated .

_________ has performed all of its duties under the agreement by supplying to you goods that
you ordered and that you have accepted. Previous efforts have been made to collect the
outstanding balance that is due and owing. You have been contacted via mail, telephone and e-
mail. However, to date, you have failed to pay to all funds due and owing. Your current
outstanding balance due and owing is _________. Your account has now been cancelled and this
matter has been referred to legal counsel for collections.

This letter serves as a final attempt to collect the overdue funds before legal proceedings will be

To avoid the unnecessary expenses related to initiating legal proceedings, _________ is willing
to compromise and accept _________ as payment in full of the outstanding debt that is due and
owing within 5 business days of the date of this letter. If this letter is not returned and signed
with payment as requested the above offer to compromise will expire and will not be offered

Further, if the above payment is not received as requested, _________ will have no choice but to
initiate legal proceedings, which may include the filing of a civil lawsuit seeking to collect the
full amount due and owing. If you have any questions, or to make arrangements for payment,
please contact _________ at _________.

                                                        Very truly yours,


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