Debt Collection Letter (Format & Sample)

A debt collection letter is a notification a creditor sends to their debtors to inform them of an impending debt and consequences of not repaying the debt in time. Since the letter can be used later in legal processes, it’s essential to know how to craft a perfect letter.

If you have any doubts about the letter, rely on samples for the format.

How to write a debt collection letter

Standardize the header

At the top left-hand side of the letter, you’ll need to fill in your official names and address as the sender. After your address, write the current date.

The salutation follows; you can use different greetings such as dear, Mr. Mrs., MS, Respected sir/ madam, followed by the name of the recipient.

The letter’s body

Start the body of the letter with an explanation of why you’re writing the letter. Include a brief highlight of the case.

In the body of the letter, you should include a line for the “amount due” In this space; you’ll fill in the dollar amount the debtor should pay.

You can also include information on the destination account where they should remit the payment. As you terminate the letter, it’s essential to warn the debtor of the repercussions of not honoring the debt letter.

Letter close

Your letter should end with a complimentary close, followed by a valid signature and your official names.

At times you might include your designation and company name if you’re writing the letter on behalf of your company or organization.

Debt collection letter format





Urgent: Debt payment

Dear (recipient),

Though we have sent several letters to remind you of the amount due, so far the debt remains unsettled. In this regard, we request you to settle this debt soonest.

Amount due: $_____________

The payment should be made to: ____________________________

If the payment isn’t made by _____/_____/20____ we will have no option but to contact our lawyer/ debt collection agency.

Please note that this can severely affect your credit rating. Make the payment immediately or contact us for negotiations.

If you do not dispute this letter in the next 30 days, we’ll consider the debtor has accepted the debt.



(Your name)

Sample debt collection letter / email

Dear Mr. Rick,

We regret that despite our earlier communication to make this payment; our efforts have been in vain. In this respect, we urge you to make payments immediately.

AMOUNT DUE: $4001.20

KINDLY REMIT THE PAYMENT TO: 111 Orange Way Orangeville, CA 90321

If the payment isn’t made by May 14, 2019, we will hand over the matter to our lawyer for legal action. Remember this can have a significant effect on your credit rating, therefore pay immediately or contact us for an alternative arrangement.

You have 30 days from today to dispute this debt in writing failure to which we will consider you to have accepted the obligation.


Jerry Thomas

Types of debt collection letter

Personal debt collection letter

A personal debt collection letter is a letter you write to individuals who owe you money. Instead of using a debt collection agent, you contact the debtor directly. In the letter these details should feature;
  • The amount due
  • Any penalties
  • A deadline for the payment
  • The name of the debtor

Letter to debt collector disputing a debt

A letter to a debt collector disputing a debt is a letter that denies the existence of a debt or disapproves the amount due. The debtor writes the letter to the debt collector to clarify the matter. In the letter include;
  • The accurate amount
  • Supporting evidence
  • Your name and address

Letter to debt collector requesting payment

If you engage the services of a debt collector to collect a debt from your debtors, you’ll need to write a letter to them asking for payment. In the letter include this information;
  • Amount at hand
  • Names and details of the debtors
  • Due date

Friendly collection letter

A friendly collection letter is a letter you write to your debtors to remind them of an impending debt. The letter acts as the first attempt to recover your money. The letter must use a polite tone and language. In the letter include;
  • A reminder of the debt
  • Due date
  • Names and address of the debtor
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