Date:

Dear Sir or Madam:

Your check # ___________, dated _______________, drawn by you for $ ___________, and payable to ______________________ was been returned by your bank or financial institution unpaid.  They stated the cause was for insufficient funds.

We requested you replace that check two weeks ago.  Time is of the essence for you to do so now; otherwise, we will be forced to sue for collection in Small Claims Court, and you will be assessed those charges as well.  Therefore, to prevent this from happening, please replace your check immediately with cash, credit card, or a bank check for the original amount of the check plus the standard return check fee of $___________, for a total amount of __________________.

After receipt of your replacement payment, we will return your old check.  When you make the replacement payment, your old check will be returned to you.

Please forward your payment to the above address.    Please either bring your payment to us today or send it out today.  Thank you for your prompt attention to this matter of concern to both of us.

Best regards,

______________
Individual or Company Representative

Enc.  Copy of Check

Bad Check Notice-Final Notice
Review List

This review list is provided to inform you about this document in question and assist you in its preparation.  This is, in part, a sales letter.  A bad check indicates someone living on the edge.  They made an effort to pay but just did not have the financial resources to make good on the payment.  This undoubtedly means they are under pressure and squeezed in general.  Your letter should encourage them to put you at the top of their list, ahead of other creditors, who may be pressing for payment as well.

Most insufficient fund checks are made good.  Therefore, if you play your cards right, you can have the check writer both pay the amount to you and be grateful to you for your reasonableness.  This is the card was played out in the last notice.  Since you didn’t get paid on the first notice, you must now go to plan B, the Final Notice, threatening collection in Small Claims Court.

1. Sign the letter

2. Your debt is now in trouble.  You should press quickly for collection now.

3.        Use the separate file you kept after the first notice to prepare your Small Claims claim.  You should keep several on hand and fill them out in a group, once a month or per quarter, depending on the number of these issues you have.    Just the act of filing the claim usually gets the bill collected in just over 50% of the cases.  If you must go to court, better to do so with a group of these so you do not spend an inordinate amount of time on them.

4.         If this is a larger amount than small claims court allows, then turn the matter over to the police for criminal action at this stage, and replace the wording above to reflect that—if they do not respond in 10 days.  If you are concerned about this step, which you may well be, discuss it with your attorney.

See Related: Bad Check First Notice

Dear ________________:

We have tried every approach we could think of to collect this debt.  We have absolutely no interest in turning this over to a collection agency or an attorney.  However, we don’t know what other choice your nonpayment gives us.

Please send us a check for the full amount or call us to set up a suitable repayment plan so we can avoid the collection route.  That is a difficult and expensive approach for all concerns.  Besides which, we would like to retain you as a customer and get our relationship back on a current and paying basis.

Please call us immediately to resolve this matter.  If you do not call, or work out suitable arrangements within the next 10 days, we will be forced to turn this over for collection which does neither of us any good and will be a disappointment to us all.

Hoping for your prompt payment and/or quick response.

With best regards,

________________
Employee Authorized

Past Due, Final Notice
Review List

This review list is provided to inform you about the document in question and assist you in its preparation.

1. This is should be your final notice prior to turning the matter over to your lawyer to write a nasty letter or a collection agency to collect this debt.  This should be a Sales letter—you are trying to motivate the recipient to pay up.  Most late payers are pressed for cash.  Your objective in this letter is to motivate the pressed buyer to put your invoice in the “to be paid” file.  The best way to do this is to offer to put the customer on a payout plan so they start working down the debt.  You are, of course, in the strongest position if they “need” more from your firm.  If this is the case, you can usually get them to pay for new goods and apply the payments towards old invoices.  Over time this generally can work to get the debt back into alignment while keeping an active customer, the best of both worlds.

2. This is not the time to try to “be right” and sermonize.  Most people will pay if they can pay; their problem usually is they have more bills to pay than money to pay it.  They are more apt to pay the firm but nice than the firm but angry and sermonizing (they know they are late; they don’t need you to remind them at this stage).

3. In summary, this letter requires a business approach to encourage the nonpaying debtor to get back in the paying habit.  Work hard to make this happen.  One way to approach the matter is to recognize that by the time you reach this point, any money is “found” money.  If you take this approach, you can back off the demands and accept what they can do as opposed to what you would like them to do.  If you do this, you generally improve your chances of collecting most if not all of what is owed your firm.

2.    Laws vary from state to state and change over time.  Before using this document, consult your lawyer for advice on other rights or obligations you may have.

3. Keep a copy of this letter in your files for this account.

See Related: Past Due First Notice

Dear ________________:

We have tried every approach we could think of to collect this debt.  We have absolutely no interest in turning this over to a collection agency or an attorney.  However, we don’t know what other choice your nonpayment gives us.

Please send us a check for the full amount or call us to set up a suitable repayment plan so we can avoid the collection route.  That is a difficult and expensive approach for all concerns.  Besides which, we would like to retain you as a customer and get our relationship back on a current and paying basis.

Please call us immediately to resolve this matter.  If you do not call, or work out suitable arrangements within the next 10 days, we will be forced to turn this over for collection which does neither of us any good and will be a disappointment to us all.

Hoping for your prompt payment and/or quick response.

With best regards,

________________
Employee Authorized

Past Due, Final Notice
Review List

This review list is provided to inform you about the document in question and assist you in its preparation.

1. This is should be your final notice prior to turning the matter over to your lawyer to write a nasty letter or a collection agency to collect this debt.  This should be a Sales letter—you are trying to motivate the recipient to pay up.  Most late payers are pressed for cash.  Your objective in this letter is to motivate the pressed buyer to put your invoice in the “to be paid” file.  The best way to do this is to offer to put the customer on a payout plan so they start working down the debt.  You are, of course, in the strongest position if they “need” more from your firm.  If this is the case, you can usually get them to pay for new goods and apply the payments towards old invoices.  Over time this generally can work to get the debt back into alignment while keeping an active customer, the best of both worlds.

2. This is not the time to try to “be right” and sermonize.  Most people will pay if they can pay; their problem usually is they have more bills to pay than money to pay it.  They are more apt to pay the firm but nice than the firm but angry and sermonizing (they know they are late; they don’t need you to remind them at this stage).

3. In summary, this letter requires a business approach to encourage the nonpaying debtor to get back in the paying habit.  Work hard to make this happen.  One way to approach the matter is to recognize that by the time you reach this point, any money is “found” money.  If you take this approach, you can back off the demands and accept what they can do as opposed to what you would like them to do.  If you do this, you generally improve your chances of collecting most if not all of what is owed your firm.

2.    Laws vary from state to state and change over time.  Before using this document, consult your lawyer for advice on other rights or obligations you may have.

3. Keep a copy of this letter in your files for this account.