Do this before filing a lawsuit with a small claims court.
It can be frustrating trying to collect past due invoices from clients and customers. They may ignore your request and cost you a fortune trying to close out their accounts. Rather than waste additional time and financial resources on the matter, you must create a final notice reflecting any past monies owed, with late fees and interest, so that the debtor can make good on their agreement to pay you.
To help you do just that, we’ve listed the steps that you need to take to draft a collection letter that garners a response from a debtor below for you to refer to today.
Address the subject by name and identify who you are as well as the reason for you to contact them.
It reminds them of the contract that you once shared and helps them keep their records straight in the event they owe multiple creditors.
Request that all monies due, including late fees and incurred interest, be paid immediately upon receipt.
Breaking down each expense so that they’re able to see the total amount due helps you get every penny owed to you.
Note that if the debtor doesn’t respond by a specific date that you’ll seek legal action against the person or business.
Be very clear about the due date, so there isn’t any more procrastination on behalf of the client or customer.
Provide clear instructions on how to submit payment to you.
Include all acceptable forms of payment as well as contact information for receiving payments.
If you don’t receive a response by a specific date, contact Ace Process Service to file a lawsuit against the client or customer who owes you money.
Let us file all documents with the court and serve your client or customer with papers detailing the small claims lawsuit they’re now a part of.
What California Law StatesCalifornia law suggests that you should make one last-ditch effort to get the debtor to pay you before seeking legal action against them. Sending a certified letter is among the most effective ways of getting the mailing into the hands of the person or business that owes you money. It provides proof that you reached out to the debtor one last time to resolve the issue before going to small claims court.