The Consumer Financial Protection Bureau is the one that creates fair financial treatment laws. Debtors, debt collectors, and debt collection are all managed by this organization. In regards to this, one of their laws addresses the required communication of parties involved in a debt agreement. This includes using and sending the right paperwork, such as debt collection and request letters.
What Is a Debt Collection Letter?
A debt collection letter is a type of debt letter that debt collectors and debtors use. For a debt collector, the debt collection letter will serve as a notice form to a debtor who needs to pay his dues. For a debtor, the letter will be for informing a debt collector of the actions he will take in regards to his debt. This includes sending details about the legal termination and closure of the debt.
List of Debt Collection Letters
Blank Debt Collection Letter
Debt Collection Agency Dispute Letter
Debt Collection Cease and Desist Letter Template
Debt Collection Letter Example
Debt Collection Letter Sample
Initial Debt Collection Request Letter
Types of Debt Collection Letters
1. Debt Collection Agency Dispute Letter
Debtors who want to verify the details of their debts must use this document. The purpose of a debt collection agency dispute letter is to inform an agency about the dispute. The debt collector will need to adhere to the statements of the debtor in the letter. This includes sending the requested debt verification information immediately or within five days. During the waiting period, the debt collector should not call and collect the debt. This rule is pursuant to the FDCPA or Fair Debt Collection Practices Act of the State. In specific, the debtor has the right to verify, contest, and dispute his debt to a debt collector.
2. Debt Collection Cease and Desist Letter Template
Thirty-days is the maximal length of time when a debtor can send a dispute letter. After the thirty-day period, the debtor can no longer send and file a dispute. Rather, he must send a cease and desist letter to the debt collector. It will notify the debt collector about the request and in pausing debt collection calls. Once created and signed, the debtor must keep a copy of the letter for personal reference. Also, he must send a copy to the Consumer Financial Protection Bureau to get legal support.
3. Initial Debt Collection Request Letter
This is the type of letter that debtors will use for their first debt verification request. The date of the request and the details of both parties will be the first information to disclose in the letter. This is then followed by the date when the debt collector called the debtor. Also, the letter will need to have a detailed list of the debtor’s rights and his assertions of the debt.
How to Make a Debt Collection Letter for a Nonresponsive Debtor
A debt collector must notify the debtors of the details of their debts. But, there should be limitations in the frequency of sending notice forms and letters. Most often, debt collectors will send no more than three letters to notify debtors. And if there is still a failure to pay the debts, then a final notice will be necessary.
Follow the steps below to create a final debt collection letter with ease:
Step 1: Create a Letterhead
The letterhead must have the debt collector’s company name, logo, address, and motto.
Step 2: State and Emphasize the Title of the Letter
Emphasizing the title requires the use of bold or italic font designs. The title should also have a larger font size as compared to the other contents of the letter.
Step 3: Place a Greeting and a Salutation
This will serve as the beginning of the letter, which should have the name of the recipient and his title.
Step 4: Add the Body of the Letter
The body should state the debt collector’s reason for sending the letter. Some of the details in the letter should explain the amount of due and the date of the last letter. Moreover, the letter must also state the legal actions the collector is taking.
Step 5: Create a Signature Line
This will be where the debt collector can affix his signature, name, and the date when he signed the letter.
After checking and reviewing the contents of the letter, printing it out will be the last step. Once printed, the assigned debt collector must sign the letter and send it to the debtor.
How to Use Our Debt Collection Letter Templates
Each of our debt collection letter templates is downloadable and editable for free. Using the templates will allow debt collector companies to create letters faster. The first step to use our templates is to choose and download. In our site, the download button is below the details section beside each of the letter templates. Clicking the download button will start the download immediately.
After downloading the template, extracting it from its file folder is necessary. The reason why the templates are in ZIP file folders is for keeping minimal file size. Getting the template will depend on the device’s software and operating system. For Windows, all that needs to do is to right-click on the file folder and choosing the extract option. For Mac, double-clicking the file and selecting the “Open with Archive Utility” will start the extraction process.
And the last step is to edit or customize the contents of the letter. This includes the statements in the body and the names stated in the letter. Moreover, some companies have document preferences. It is also important edit fonts, sizes, and layout of the letter as per the preferences of the company.
To conclude, debt collection letters are essential for both parties of a debt. Placing documents related to the debt and the issue addressed in the message will also be useful for the recipient. It will further allow the recipient to have supplemental information that support’s the statements in the letter.
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