The Final Word on Demand Letters
We’re often asked whether a utility should send one final demand letter before turning a file over to collections. The answer: absolutely.
It’s certainly in your own financial interests to make a last, best attempt to recover your own debts before turning them over to a third-party agency.
They key here is LAST. Your final demand letter should include a hard deadline, whether it be 30, 60, or 90 days outstanding. Give your customer one LAST chance to deal with you, but also make sure they understand that the deadline is just that: their final opportunity to work things out.
Set a hard deadline and stick to it. It’s extremely important that you show that you mean business—that if the deadline is not met the account WILL be turned over to a collection agency.
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