letter of collection


An official message sent to a borrower or a customer informing them of a past-due balance. The letter may include late charges, warnings of potential penalties for late repayment or non-repayment, or notification of possible legal action should the recipient fail to settle their account.

Use this term in a sentence

When the plant closed and she lost her job things got very bleak for her and her children and it wasn't long until the mortgage company's letter of collection came and were accompanied by ones from her credit card companies.

​ Was this Helpful? YES  NO 10 people found this helpful.

After not paying his credit card bill for over 6 months the company sent Joe a letter of collection stating that the amount was so far past due it was sent to a collection agency.

​ Was this Helpful? YES  NO 6 people found this helpful.

After his wife lost her job several of their monthly bills fell behind eventually resulting in them receiving a letter of collection from the gentleman who had repaired their fence.

​ Was this Helpful? YES  NO 4 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
letter of acknowledgement letter of comment