FAQ’s About Collection Letters? Click Here for Answers

FAQ’s About Collection Letters

FAQ’s about collection letters answered here.  It’s easy to think everyone knows what we’re talking about when we discuss collection letters, but not everyone has collection problems.  If this is your first time considering outside collections I hope these answer your questions.  If not give me a call at 800-201-CA$H (2274) my extension is 110 and I’m happy to take your call. Vienna

What is a 1st Party Collection Letter?

A first party collection letter is one you send from within your company.  You are the first party.  In many companies 1st party collection letters are called In-House Collection Letters.

When should I send a 1st party collection letter?

You should send an In House letter when or if your customer refuses to take your collection calls and before you send a 3rd party or debt collection letter.

How old should my invoice be before I send an In‐House letter?

It depends on your companies collection policy and you should consult your company manual but we recommend starting friendly collection activity at 10 to 15 days beyond terms.

How many 1st party letters should I send?

Not more than three. If your customer hasn’t taken your calls or responded to three written requests for payment you have a problem.

What is a 3rd Party Collection Letter?

A third party collection letter is sent for you generally by a collection agency. The collection agency is the 3rd party. These letters are more typically called debt collection letters.

When should I send a 3rd party debt collection letter?

You should send a 3rd party collection letter after your in‐house calls and letters have failed to produce results.

What if my debt is out of statute?

You can continue to engage in collection activity after your debt is out of statute, it’s not illegal, but you can’t credit report it and generally it doesn’t work, in our opinion your time would be better spent focusing on good customers and new sales.

When I send my letter does it start the clock over?

No, however in some states if your debtor makes a payment it does.

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