Tips For Writing a Collections Payment Arrangement Letter

 A collections payment arrangement letter is a legal document that allows both the creditor and the debtor to negotiate a plan for the debtor to pay off the debt. It states the original debt owed, the payment terms that will work for the payee, and the timetable in which payments must be made. It is usually written by the entity owed the money, and the payee signs it when they can afford to make the payments.

A collections payment arrangement letter should be formal and avoid using aggressive language. It should be clear and simple to read. It should include the debtor's name, the amount, and the deadline for payment. In addition, the letter should reference the original contract or agreement in order to provide further details. Listed below are some tips to help you write the best collection payment arrangement letter.

When drafting a collections payment arrangement letter, ensure you know the client's payment history. Using a service such as Clio Manage can alert you when a client is running behind on their payments. It is essential for lawyers to know when a client is falling behind on bills so they can initiate payment negotiation.