This review list is offered to help you learn more about this document and prepare it. It’s more of a sales function than anything else when it comes to collecting money. However, if the party has not answered to your initial letter, this letter gets sent. You may now move quickly through the collection procedure knowing you tried your hardest to collect in a more amiable manner because they are stonewalling it.
The guarantor may still react to this second notice if you initiated this process early in the default stage. We recommend waiting another 14 days before proceeding, as you can always have your collection agent or lawyer settle the dispute as the process unfolds.
- Make sure you include the legal disclaimer stating any and all information you provide will be used to collect a debt. If you communicate with them, make sure to inform them orally.
- Sign the letter and put a 14-day reminder on your calendar to send a second demand letter (14 days provides a little extra time for the mail and delays).
- We propose that the person in charge of the situation sign the letter and give a direct phone number and extension, if applicable. In our experience, the personal touch brings money in the door while also being a more civilized manner of doing business.
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Guarantor, Final Letter trying to Collect
Name & Address of party written to
Dear Sir or Madam:
We wrote you 3 weeks ago notifying you we are the holder of your Guaranty of the debts and obligations of _____________ (Name of Person) whose debts are being Guaranteed (“Debtor”) to us in the amount of $_____________________, a copy of which is enclosed.
The Debtor has defaulted in payment to us. In accordance with the terms of the Guaranty, we hereby demand payment in full of the outstanding debt in the amount $_________________________, together with interest thereon at the rate of ___ Interest as provided for in the Agreement, from this date forward.
We are sorry the matter has reached this stage but find no alternative since we are unable to collect these funds from the debtor. We were willing to discuss payment plans but you did not respond to our offer. Therefore, we are now required to turn this matter over to our collection attorney, an expensive matter for you since our attorney will be paid for by you, per the attached guarantee.
Please note we are obligated by law to inform you any information received will be used to collect this debt.
If you wish to reconsider your position, and avoid additional legal, interest, and penalty charges, and they will mount up fast, please contact us immediately.
If we do not hear from you in 10 days, we turn this over for to our lawyer to reduce this debt to a Court Judgment to be enforced against the original debtor and yourself.
Yours very truly,
Authorized Employee or Individual
cc Original Debtor or Debtors
Guarantor, Trying to Collect from
This review list is provided to inform you about this document and assist you in its preparation. Collecting money is more a sales function than anything else. However, this letter goes out when the party has not responded to your first letter. Since they are stonewalling it, you can now move quickly through the collection process knowing you tried your best to collect in a more amicable fashion.
If you have started this process early in the default stage, then the guarantor may still respond on this second notice. It is our advice that you wait another 14 days, and then proceed expeditiously since you can always have your collection agent or lawyer settle the matter as the process unwinds.
1. Be sure you include the legal warning that all information received will be used to collect a debt. Be sure to orally advise them if you speak with them.
2. Sign the letter and mark 14 days off to send a second demand letter (14 days provides a little extra time for the mail and delays).
3. We recommend the person handling the matter sign the letter personally and include a direct phone line and extension as applicable. The personal touch gets money in the door, in our experience, as well as being a politer way of operating.