A collection letter for overdue accounts is often the only recourse that an account holder has when they receive a court judgment for not paying their debts. This is due to the fact that many collection companies rely on the fact that most people just do not keep up with their credit card or other bill payments and are in debt at the same time. In an effort to try and recover as much money as possible, collection agencies will utilize a collection letter for overdue accounts as their main weapon in a battle against delinquent accounts. While this method of collection does work to some degree, it is important to remember that there are limitations to how these letters are used.
First, when you are sending a collection letter for overdue accounts you must be very clear and specific about what you want the bank to do. For example, you might state in your letter that you have a phone number and you want that the collection agency to return your call within the next sixty days. This is the type of collection that you use the legal system to enforce. However, this letter is generally frowned upon by most banks since it is seen as harassment. If the bank received a collection letter for a regular account and the delinquent amount was just over one hundred dollars then they would most likely ignore the letter since it was not meant to be. However, this is not always the case and collection agencies commonly use this form of letter to collect large amounts of late fees and missed payments from debtors.
Second, even though collection letters for overdue accounts may seem like a successful tool to collecting back taxes or penalties they should never be relied upon as the sole weapon in a collection situation. Even if the amount owed is smaller than many people tend to think it still is a loan that needs to be paid back. In addition, collection agencies will most likely move on to another account if the debt you are asking them to retrieve is not something they can easily win in court. It is important to be aware that collection letters are tools to collect money, not guarantees of their success.
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