ENGLISH CORRESPONDENCE

“COLLECTION LETTERS”

GROUP 1

Shinta Andriani Sere (N1D216074)

Muh. Izha Ashari (N1D216116)
Hellen Jaya Rigay (N1D216030)
Wa Ode Nurtin (N1D216102)
Salman Al Farisi (N1D216146)
Ayu Cahyati (N1D216012)
Nurfatimah (N1D216052)
Siti Aisyah Akhtar (N1D216076)
Reinaldi Sirumpah (N1D216094)

ENGLISH LITERATURE
FACULTY OF CULTURAL SCIENCES
HALUOLEO UNIVERSITY
KENDARI
2018
 PREFACE

First of all thanks for God’s love and grace for us. Thanks to God for helping and give
us chance to finish this paper timely and we would like to say thank you to the lecturer that
always teaches us and give much knowledge about language.

This assignment is the one of English correspondence task and we realized this paper
is not perfect. But we hope it can be useful for us. Critics and suggestion is needed here to
make this paper be better.

Hopefully, this paper can help the readers to expand our knowledge about “collection
letter”

Author
 TABLE OF CONTENT

PREFACE ……………………………………………………………………………….... i

TABLE OF CONTENTS ……………………………………………………………….... ii

CHAPTER I INTRODUCTION ……………………………………………………….... 1

CHAPTER II DISCUSSION……………………………………………………….......... 2

A. The definition, purpose and features and of collection letter

B. Step by step guide
C. The types of collection letters

CHAPTER III CONCLUSION ……………………………………………………........

REFERENCES ………………………………….………………………………………..
 CHAPTER 1

INTRODUCTION

In the business world, a huge business is done or credit. But there are sometimes
problems when the debtor (buyer) delays the payment beyond, the credit period. And debtor
is found to be reluctant in the settlement of dues because of natural habit Here the seller has
to resort to what is called a collection or dunning letter to solve the problem. This paper has
sample collection letters you may have to write. The types of collection letters included are
notification, reminder, inquiry, urgency, final notice/ultimatum lost payment/apology, In this
section, at the side of the page, you will find a brief explanation of each part of the letter. The
first letter identifies each section of the letter. Subsequent letters identify only changes to the
basic format.
 CHAPTER 2

DISCUSSION

A. The definition, purpose and features and of collection letter

Definition

A collection letter is a professionally written letter sent by a business owner, a

creditor, or a company that has not been paid for services or goods in a timely
manner. A collection letter notifies the customer of money owed and usually includes
instructions on how to make late payments. Collection letter definition according to
As L. Gart’ “A request to settle the outstanding account is known as collection
letter”.

Purpose
The purpose of a collection letter is to nudge the customer to send payment or
to call and discuss the matter. An effective collection letter is polite but firm and
includes instructions on how to pay the debt. These letters are meant to stimulate
payment for a company and help with revenue

Features of collection letter

1. Collection of Debt: It is a letter that attempts to collect debt from the customer or
buyer.
2. Series of letter: Collection letters are written in a series. The series is begin from
simple notification, reminder letter and end with warning letter.
3. Patience: The creditor should keep patience while communicating through such
letter. Lack of patience may result in loss of money, goods and the customer’s
future business.
4. Positive tone: The tone of such letter should be positive with cheerful and
optimistic approach. There should be fairness and self respect for requesting the
creditor.
5. Language: The language of such letter must be tact and persuasive so that
collection of debt as well as goodwill remain side by side. Send by post: Dunning
letters are sent by post through registry
6. Planned structure: The letter should have planned structure to make the best
possible efforts to retain the customers with prompt collection.
B. Step by step guide

Step 1: Check the spelling of the recipient’s name. Use a gender-specific courtesy title
only if you are certain of the recipient’s gender. There is nothing more
embarrassing or irritating than getting a collection letter, except getting one
that is addressed improperly.

Step 2: The first part of the letter should state the concern and the situation (date
purchased, amount owed and date due).

Step 3: The next part of the letter should indicate the dead-line for paying the bill and
any penalties that may result. You may also wish to indicate your company’s
policy concerning late payments, grace periods, penalties or alternative
payment plans.

Step 4: The third part of the letter should indicate the conse-quences of not paying the
bill. Initially, these may be penalties but, as the bill becomes more delinquent,
it may include warnings of ruined credit ratings or involvement of a collection
agency.

Step 5: The final part of the letter should encourage the recipient to send full payment
or contact you to arrange a payment schedule. End with good will and a
positive attitude that this situation will be resolved satisfactorily.
C. The types of collection letters

The types of collection letters that we want to explain are :

a) Notification
This letter is to notify the recipient that the bill is overdue.

Example 1.

Western Wear Letterhead

2212 Boot Hill Rd. • Cheyenne, WY 82001

Date
July 5, 20XX (2-3 spaces)

Inside Address
Ted Wilson (2-3 spaces)
515 Ramey Ct.
Laramie, WY 82063
Salutation
Dear Mr. Wilson:
State the
Thank you for shopping with us. You are a valued Concern
customer. We appreciate your business and know
that you want to keep your account current with
us.On May 15, 20XX, you purchased merchandise
worth $319.04 from our store in Laramie. Your State the
payment of $100 is now overdue. Situation

In the credit agreement you signed, you agreed to

pay off your bill in three payments. The first Indicate
payment of $100 was due June 15, 20XX. Please Deadline
send this amount now.

Failure to pay on time may affect your ability to Indicate

charge merchandise at our store. Thank you for your Consequences
prompt attention.

You may call me at 800-555-9875 if you have any Indicate Contact

questions or concerns. Your continued patronage is Indicate
important to us. Goodwill

Sincerely,

Signature Signature

Mary West Typed Name

Credit Manager
 Example 2

Rumah Nasi Kuningku Letterhead

231 Dream Rd. Unaaha, Southeast Sulawesi 93400

Date
February 27, 2017 (2-3 spaces)

Shinta Andriani
64 Lumba-Lumba St. Inside Address
Kendari, Southeast sulawesi (2-3 spaces)

Dear Ms. Sinta, Salutation

Thank you for trusting us for buying our food in Rumah Nasi State the
Kuningku. You are delightful costumers for us. Concern

You have ordered our food worth Rp. 400.000 for your State the
Office event on January 12, 2017. Situation

We made an agreement that you have signed before, in the

Indicate
agreement you will pay this bill with your credit card within
Deadline
two times payments. We send this letter to notify you that
the first payment will be due tomorrow.
Indicate
If you are unwilling to pay the bill on time you will be Consequences
charged about 5 percent according to the first cost.

Please call us at 0989-1998-1225 for further information. Indicate Contact

Thank you. Indicate
Goodwill
Sincerely,

Signature Signature

Izha Ashari Typed Name

Manager
b) Reminder

This letter reminds the reader that the bill is overdue and the payment
still hasn’t been received. Be careful to focus on observable behaviors and to
avoid assumptions. Saying, “We have not received payment,” is an observable
behavior. Saying, “You have not sent payment,” is an assumption. Stay
positive

Example 1.

Western Wear
2212 Boot Hill Rd. • Cheyenne, WY 82001 Letterhead

August 5, 20XX Date

(2-3 spaces)

Ted Wilson Inside Address

515 Ramey Ct. (2-3 spaces)
Laramie, WY 82063
Salutation
Dear Mr. Wilson
Remind
We have not yet received your payments. This is to Recipient of
remind you that both your first and second payments the Situation
of $100 are now overdue. This $200 plus the balance
of $119.04 is due on August 15.

In the credit agreement you signed, you agreed to pay Request

off your bill in three payments. The first payment of Payment
$100 was due June 15, 20XX, the second payment of and Indicate
$100 was due July 15, 20XX, and the final payment Deadline
of $119.04 is due August 15, 20XX. Please send the
full amount in 10 days.

Failure to pay on time will affect your ability to Indicate

charge merchandise at our store. If you want to Consequences,
discuss your account, call me at 800-555-9875. Alternative and
Perhaps we can arrange a more comfortable payment Contact
plan.
Indicate
Thank you for your immediate attention. Goodwill

Sincerely,
Signature
Signature
Typed Name
Mary West
Credit Manager
Example 2.

Rumah Nasi Kuningku Letterhead

231 Dream Rd. Unaaha, Southeast Sulawesi 93400

Date
March 10, 2017 (2-3 spaces)

Shinta Andriani Inside Address

64 Lumba-Lumba St. (2-3 spaces)
Kendari, Southeast sulawesi

Dear Ms. Sinta, Salutation

Recognizing your very busy schedule, I’m sending you this Remind
letter as a reminder because we have not yet received your Recipient of
payments. the Situation

In the agreement that we have made before, you agreed to Request

pay off your bill in two time payments. The first payment of Payment
Rp. 200.000 was due on February 11, 2018. And for the final and Indicate
payment of Rp. 200.000 is due March 15, 2018. Please pay Deadline
your bills as soon as possible.

If you are not pay your bills again within the time you will be Indicate
charged 10 percent. Contact details at 0989-1998-1225 for Consequences,
more information and alternative payment plan. Alternative and
Contact

Thank you for your attention.

Indicate
Sincerely, Goodwill

Signature
Signature
Izha Ashari Typed Name
Manager
c) Inquiry

This letter inquires why the bill isn’t being paid. It assumes that the bill
is overdue. It’s a good idea to follow this letter with a personal phone call
inquiring about the payment delay. Often an alternative plan can be arranged
to suit the recipient’s current budget constraints. If another agreement is
reached, send a copy of the new payment plan to the recipient. Continue to
follow up letters with phone calls to maintain open communication. Keep a
log of all calls

Example 1.

Western Wear
2212 Boot Hill Rd. • Cheyenne, WY 82001 Letterhead

August 5, 20XX Date

(2-3 spaces)

Ted Wilson Inside Address

515 Ramey Ct. (2-3 spaces)
Laramie, WY 82063
Salutation
Dear Mr. Wilson:
Inquire
Is there some reason you have not paid your bill of
$319.04?
Indicate
In the credit agreement you signed, you agreed to pay Deadline
off your bill in three payments. Your total bill is now
overdue. Please send $319.04 within 10 days. If you
have any questions or concerns regarding this bill,
please contact me at 800-555-9875 by September 10.
Indicate
Failure to send the full amount by September 15 may Contact
mean that your bill is turned over to a collection Indicate
agency. Your prompt attention is urgent to protect Consequences
your credit.

Sincerely, Signature

Signature
Typed Name
Mary West
Credit Manager
Example 2.

Rumah Nasi Kuningku Letterhead

231 Dream Rd. Unaaha, Southeast Sulawesi 93400

March 25, 2017 Date

(2-3 spaces)

Shinta Andriani Inside Address

(2-3 spaces)
64 Lumba-Lumba St.
Kendari, Southeast sulawesi
Salutation

Dear Ms. Sinta, Inquire

Is there a reason why you have not paid your bill in amount
of Rp. 400.000? Indicate
Deadline
In the credit agreement that we have made before about 2
month ago, you agreed to pay off this bill in two times
payment. Your total bills is now overdue and increase by the
time.
Indicate Contact
Failure to pay your bills within 10 days from now you will be Indicate
charged 20 percent according to the first cost. If you want to Consequences
know further or complain about your payment call us at
0989-1998-1225 immediately.

Sincerely, Signature

Signature
Typed Name

Izha Ashari
Manager
d) Urgency

This letter stresses the urgency of the need for the customer to take
some kind of action on the bill. It is a continuing progress report on the
recipient’s account. If an alternative payment plan has been reached
previously, indicate the details of the agreement and the telephone contact
dates to keep an accurate record of communications.

Example 1.

Western Wear Letterhead

2212 Boot Hill Rd. • Cheyenne, WY 82001

August 5, 20XX Date

(2-3 spaces)

Ted Wilson Inside Address

515 Ramey Ct. (2-3 spaces)
Laramie, WY 82063
Salutation
Dear Mr. Wilson:
State the Situation
Your bill of $319.04 is now overdue 60 days. Indicate Grace Period
Send $319.04 within 10 days. If you cannot (indicate alternative, if
send the total, please call me at 800-555- agreed)
9875.
Indicate Probable
Failure to respond may mean that your bill is Consequences
turned over to a collection agency. Thank
you for your prompt attention Signature

Sincerely,
Typed Name
Signature

Mary West
Credit Manager
Example 2.

Rumah Nasi Kuningku Letterhead

231 Dream Rd. Unaaha, Southeast Sulawesi 93400

March 30, 2017 Date

(2-3 spaces)

Shinta Andriani Inside Address

(2-3 spaces)
64 Lumba-Lumba St.
Kendari, Southeast sulawesi

Dear Ms. Sinta, Salutation

Your bills with the total amount Rp. 400.000 is reaching the State the
timeline limit now. Me as a manager of this restaurant hope Situation
that you will pay your within 5 days. If you cannot pay this Indicate Grace
because there is something that we don’t know please call us Period (indicate
at 0989-1998-1225 or you can send an E-mail at alternative, if
RMNKuning@dream.com agreed)

If you not respond to this letter as soon as possible we will Indicate

charged you 50 percent according to the first cost. Thank you Probable
for your attention. Consequences

Sincerely,

Signature Signature

Izha Ashari Typed Name

Manager
e) Final Notice/Ultimatum

This letter is the final notice the customer receives. It gives the
customer an ultimatum: If you do not respond, this will happen. After this
letter there are no more chance

Example 1.

Western Wear
2212 Boot Hill Rd. • Cheyenne, WY 82001 Letterhead

August 5, 20XX Date

(2-3 spaces)

Ted Wilson Inside Address

515 Ramey Ct. (2-3 spaces)
Laramie, WY 82063
Salutation
Dear Mr. Wilson:

Your bill of $319.04 is now 90 days overdue. State the Situation.

The total amount is due now. Indicate Deadline.

If your payment in full is not received by Indicate

December 10, your file will be turned over to a Consequences
collection agency

Sincerely,

Signature Signature

Mary West
Credit Manager Typed Name
 Example 2.

Rumah Nasi Kuningku Letterhead

231 Dream Rd. Unaaha, Southeast Sulawesi 93400

March 30, 2017 Date

(2-3 spaces)

Shinta Andriani Inside Address

(2-3 spaces)
64 Lumba-Lumba St.
Kendari, Southeast sulawesi

Salutation
Dear Ms. Sinta,

You have been given more than ample time and notices State the
regarding your seriously overdue debt of Rp. 150.000 with Situation.
Rumah Nasi Kuningku.
Indicate
your debt is due now, you have to pay immediately. Deadline.
Within the next 10 days, you may contact our office to pay Indicate
this account in full or set up payment arrangement. We Consequences
accept cash, check or credit card for payment. After 10 days,
if you have not contacted our office regarding this account,
your account will be turned over to a collection agency.

Sincerely,

Signature
Signature

Izha Ashari
Manajer Typed Name
f) Lost Payment/Apology
Sometimes a bill adjustment and an apology are necessary.

Example 1.

Deem’s Department Store Letterhead

2030 Aquamarine Road
Silver Spring, MD 20904

August 4, 20XX Date

(2-3 spaces)

Mrs. Franklin
5930 E. 46th St. Inside Address
Colesville, MD 20901 (2-3 spaces)

Dear Mrs. Franklin: Salutation

Your patience has been bountiful. When we last Acknowledgment

spoke on Friday, I had not yet located your payment. Adjustment
I have credited $45.89 to your account today.

Our policy states that one percent interest (APR) is Policy

accrued on the last workday of the month on any
account balance. However, we are withdrawing this
policy for you for August 1 through October 31, Adjustment
during which time your account will reflect a zero-
interest adjustment.

We found your check (#984, dated June 20, 20XX) Reason

on our mailroom floor this morning. The envelope
was torn away and the check was crumpled. We are
still speculating about how it disappeared.

To offset any inconvenience the interim bills have Benefit

caused you, we are enclosing a 20 percent discount
coupon for your next order. Just attach the coupon to
your order and I’ll personally assist you.

Thank you for your patience, Mrs. Franklin. Please Thank You
accept our warmest apology. Apology

Sincerely,

Signature Signature

Sybil Paxton Typed Name

Customer Service Manage
 Example 2.

Indomie Seleraku Co. Letterhead

112 Hollywood Road
Unaaha, southeast Sulawesi 94300

February 27, 2018 Date

(2-3 spaces)
Hellen jaya
12 Boiku St. Inside Address
Mandonga, southeast Sulawesi 91000 (2-3 spaces)

Dear Madam,
Salutation
This is to inform you with reference to your purchase order
number 167823 which you placed for 2 containers on the Acknowledgment
date 17 January 2018, that this order has been cancelled by Adjustment
our board of directors. The shipment of ordered goods has
been delayed from 20 January 2018 to 15 February 2018.
Hence we cannot deliver the ordered goods on time, thus our Policy
board of directors has taken the decision to cancel the order.
You have already made a payment of Rp. 1.000.000 for the
ordered goods. Therefore we are repaying your amount and Adjustment
the cheque of payment is attached along with this letter.

I apologize to you for the loss and inconvenience caused to Reason

you because of us. I hope you will consider our sincerity and
try to accept our apology. As you are our valued customer,
your satisfaction is our primary concern. Hope to do good
business with you in the future. Benefit

Thank you for showing your forbearance, please forgive our Thank You
mistake. Apology

Yours truly,

Signature
Signature
Typed Name
Izha Ashari
 CHAPTER III

CONCLUSION

The need for writing collection letters is to get payment an overdue bill from
customer, when a customer is late on a payment by more than just a few days, a collection
letter will be sent that tells the customer the amount of the balance owed and how to pay it.
Collection letters are written in a series. When collection letters are written in a series
beginning with a simple notification and end with a warning letter indication legal action.
 REFERENCES

Business Letters for Busy People Edited by National Press Publications

Writing a Collection Letter

(http://business.lovetoknow.com/wiki/Writing_a_Collection_Letter)

Collection Letter Definition and Meaning

(https://www.businesscommunicationarticles.com/collection-letter-definition-and-
meaning/)

What is collection letter? definition and meaning – Business Dictionary

(http://www.businessdictionary.com/definition/collection-letter.html)