Late Payment Chaser Letter

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Overview

A late payment chaser letter for use after an initial debt reminder letter has been sent.

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Late Payment Chaser Letter

You can stay in control of money that you are owed by following the debt recovery process. The first step in the recovery process is  to send the Debt Reminder Letter to the debtor. If the Debt Reminder Letter is unsuccessful,  you will then have to move on to step two.

Step two is the Late Payment Chaser Letter. Of course, you should use your discretion when sending out the second letter. It could simply be that the Debt Reminder Letter letter was received and the debtor simply forget to make payment. If you send out the Late Payment Chaser Letter too early, you could find that the payment has crossed in the mail with the second letter. Only you will know the appropriate time to start the second step, but if you wish to use the debtor's services again in the future and this is the first time they have not made payment, you may want to give them the benefit of the doubt.

The Debt Reminder Letter gives details of the debt owed and states that the debtor has seven days to make the payment due. You should wait at least eight days before then sending the Late Payment Chaser Letter. The second letter will provide another seven days for payment before you send out the third step in the debt recovery process which is the Debt Settlement Letter. This letter is an attempt to negotiate a compromsie with the debtor for example, by allowing them to pay by instalments or to write off some of the debt.

If the debt recovery process reaches the final fourth step, that of the Debt Recovery Letter, and payment still has not been made, you have a legal right to then attempt to recover the funds through the courts. The court will want to see that you have actively moved through the debt recovery process with the proper paperwork and that you allowed reasonable time for the funds to be paid by the debtor. By sending out the Late Payment Chaser Letter you are providing proof of the second step in the process.

Using the Late Payment Chaser Letter

Our debt recovery letter templates have been written with a firm yet pleasant tone that will hopefully lead to the recovery of your money. It is possible to customise the templates if you wish to give more time for the debtor to make payment or make provision for interest to be paid on the amount due.

Associated Documents

The other template letters that you are likely to need in collecting your unpaid debts include our Debt Reminder Letter, Debt Recovery Letter and Debt Settlement Letter.

For non-business customers, we provide information on Debt Solutions and Debt Management Plans.