Announce Punitive Measures Against a Client's Account

Letter #1


Your account is seriously past due. As of this date, it has been 80 days since we last received a payment. We regret that we must suspend your credit privileges and will insist on payment in cash or check for future purchases. When your account becomes current, we will reevaluate your situation to determine whether we can reinstate your credit line.

If we have made an error, or if you feel that there is a reason we should not suspend your credit, please inform us in writing as soon as possible.

Letter #2


During our phone conversation on June 3, you promised to make monthly payments of $300.00 to pay off your overdue balance of $2,420.00. Since then we have received no payment from you. Effective immediately, we must request that you pay cash for all orders until this balance is paid in full.

Letter #3


Your Doe's charge account balance is more than 10% over your credit limit and your minimum payment of $30.00 (including $10.00 late payment penalty) is 60 days past due. In light of this situation I have no choice but to suspend your credit privileges until the balance of $567.89 has been paid in full. Your credit will then be reinstated. Please let us know if there has been an error in our calculations. We appreciate your business and hope to be able to extend you credit again soon.

Letter #4


We understand that our credit customers are some of the busiest people in the world, and that it can be difficult to remain on top of all obligations. However, your Doe's account payment has been overdue for over 90 days, and our two previous letters have received no response from you. Under these circumstances we must ask that all further purchases be on a cash basis until such time as your balance has been brought to a manageable level and payments made on time for six consecutive months. In addition, we must warn you that if this balance remains unpaid, the matter will be turned over to a collection agency by the first of next month. If there is a discrepancy between your records and ours, we invite you to discuss the matter with John Doe, our accounts receivable officer. John may be reached at 555-5555 during business hours.

How to Write this Credit Letter: Expert Tips and Guidelines

Try to maintain a courteous tone as you explain your reasons for taking this action. Keep in mind that you want to maintain this customer's business, even if you must ask for cash payments.


  1. Inform the customer that payment is past due and state the amount of the delinquency.
  2. Inform the customer of the punitive action against his or her account and explain how the customer can regain full credit privileges.
  3. Invite the customer to tell you if there is an error in your records.

Write Your credit in Minutes: Easy Step-by-Step Guide with Sample Sentences and Phrases

1 Inform the customer that payment is past due and state the amount of the delinquency.

Sample Sentences for Step 1

  • Our records show that you still owe us the $300.00 that you promised to pay two months ago.
  • Your account balance of $720.00 has been overdue for 160 days.
  • We understand how difficult a financial setback can be, and we feel that we have been generous in overlooking many of your late payments in the past. However, in reviewing your account this quarter, we note that you have also missed your last two payments.
  • As the accompanying statement shows, your account balance of $950.00 is 120 days past due.
  • Your account balance of $900.00 is now 90 days past due. Late charges in the amount of $115.00 have accumulated on your account.
  • You are no doubt aware that you have exceeded your credit limit by $300.00. This amount was due three months ago.
  • We have enjoyed serving your company for the last year, and so we regret telling you that your account balance of $30,000.00 has been past due since January 20.

Key Phrases for Step 1

  • according to our records
  • exceeded your credit limit
  • has been overdue for
  • has come to our attention that
  • have been generous
  • have missed your last
  • have overlooked prior late payments
  • have failed to
  • have received no
  • is past due
  • made no payments for
  • our records indicate
  • promised to pay
  • regret to inform you
  • still owe us
  • the amount due is
  • the accompanying statement details
  • the balance now due is
  • when reviewing your account
  • with interest and penalties
2 Inform the customer of the punitive action against his or her account and explain how the customer can regain full credit privileges.

Sample Sentences for Step 2

  • We feel that we must request cash upon delivery for the next four months. At the end of that time, we will reevaluate your company's financial condition and make our decision whether to reinstate your credit account.
  • We have made numerous attempts to contact you by phone, but have been unable to reach you. We would like the opportunity to discuss your past due account to see if we can offer some solutions to help you resolve this problem.
  • We regret that we must lower your credit line to $5,000.00 due to your failure to make your payments on time. We will consider raising your account to its original limit when you have made prompt and full payments for six consecutive months.
  • In order to avoid incurring additional late charges and possible litigation, please submit $1,015.00 to our corporate office immediately.
  • Due to your failure to pay your account balance, we are forced to revoke your credit privileges until you have paid the full amount due.
  • Effective immediately, we must ask that you pay cash for your orders until your account balance is paid in full.
  • We hope that you will understand that we must restrict your credit line to $1000.00 because of your consistently late payments. If you make your payments on time and in full for the next six months, we will consider raising your limit to its original $5000.00.
  • We need to make other arrangements with you to pay for our services until you overcome your financial difficulties.
  • For these reasons we must reconsider your current payment options and lower your credit limit to $3,000.00. In six months' time we will reevaluate our decision.
  • We must cancel your credit privileges for the next six months because you have not made your payments on time.
  • If your payment is not received by September 19, 2019, a negative credit report will be made on your account.
  • If this amount is not received by February 9, 2019, we will consider you in default on your contract.
  • If I have not heard from you by September 19, 2019, I will assume that you have no intention of seeking a solution to the delinquency problem voluntarily and will, therefore, retain an attorney to pursue legal action to recover the unreturned property.
  • If your account is not current by April 13, your credit line will be canceled.

Key Phrases for Step 2

  • because you have not
  • close your account
  • due to your failure to
  • feel that we must
  • find ourselves obliged to
  • from now on
  • in the following manner
  • in the best interests of
  • in order to continue your account
  • limit your credit line to
  • make other arrangements
  • must restrict your privileges
  • payment of the full amount due
  • reevaluate your company's
  • regret to inform you
  • request that you
  • request cash upon delivery
  • taking these factors into consideration
  • to reinstate your credit account
  • until you pay
  • until you clear up
  • will be effective immediately
  • will be in force until
  • your account is restricted
  • your financial difficulties
3 Invite the customer to tell you if there is an error in your records.

Sample Sentences for Step 3

  • Please notify us immediately if you feel there is an error in our records.
  • If you believe that we have miscalculated the amount due on your account, please notify me immediately.
  • Please let us know if there is an error in our records concerning your account.
  • We would appreciate any help you could give us in obtaining a more accurate view of your situation.
  • If we have made an error in reviewing your account, please contact our office at 555-5555 and ask for John Doe.
  • Please contact us if we have overlooked any payments you have made toward this account.

Key Phrases for Step 3

  • any additional information
  • any discrepancy in our records
  • as you review your records
  • at your convenience
  • can contact our office at
  • concerning your account
  • eager to resolve this matter
  • if we have made an error
  • if you believe that
  • if you feel that
  • if we have made an error
  • if we have overlooked
  • if you have any questions
  • look forward to
  • please notify us
  • please let us know
  • questions about your account
  • value your business
  • will be happy to discuss
  • would be happy to hear from