How to Write the Ultimatum Collection Letter

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If the customer does not answer any of your collection letters, you can give him/her a final chance to pay. The Ultimatum Collection Letter needs to state the specific action you will take if the customer does not send payment by a certain date. Your statements should be fair, reasonable, and logical. In your last letter:

  • First review the history of the account: what the customer purchased, your repeated efforts to collect, etc.
  • Give a deadline for payment or for the customer to commit to a repayment agreement—otherwise you will take legal action to reclaim the purchased goods and/or turn the account over to a collection agency.
  • Be careful not to use name-calling or to make accusations, which are both illegal. Always be careful with what you put in print! Simply state the facts and explain why his/her inaction is causing you to take action.

If the Ultimatum Collection Letter fails to bring results, be sure to follow through with your stated action.

Note: Debt collection is not an enjoyable pastime, but if you follow these logical steps in preparing your collection letters, you will succeed in collecting payment on many of your delinquent accounts.

Warning: Do not suggest in any collection letter that the customer might be dissatisfied with the product or service he/she purchased from you.

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Still can't find the right words for your collection letter?

You will with our 500 letter-writing tutorials!

Let our letter-writing tutorials guide you step-by-step through the writing process, suggesting sample phrases and sentences for each writing step. In minutes, you can write an effective collection letter.