DEBT LETTER - CHARGING INTEREST ACCORDING TO YOUR TERMS AND CONDITIONS

ABOUT DEBT LETTER - CHARGING INTEREST ACCORDING TO YOUR TERMS AND CONDITIONS OR BY AGREEMENT

WHEN TO USE THIS DOCUMENT

 This document is a letter which is demanding repayment of a debt due and is sent by the person who is owed money (the creditor) to a person or business who owes money (the debtor). It can be for work and/or products supplied by the creditor.

 The letter is intended to give the debtor a final chance to make payment that is due but also warns that if they do not make payment, then the creditor will be issuing court proceedings to recover the money due. For this reason it is also called a “letter before action”.

 This letter can be sent by any creditor to any debtor. It allows the creditor to charge interest according to the interest rate the creditor specified to the debtor that they would charge. So, the interest rate used will be the one in the agreement between the creditor and the debtor or in the creditor’s terms and conditions of business.

THIS DOCUMENT CONTAINS THE FOLLOWING:-

 The letter allows the creditor to specify:-

• The interest that has accrued
• What amount is due
• The date when it must be repaid by
• How it must be repaid (you choose, for example, to demand payment by bank transfer)

DO NOT USE THIS DOCUMENT IF YOU

• Your terms and conditions of business or the agreement does NOT specify what amount of interest you charge for late payments (see our other documents).
• You are writing to a business and want to claim interest and penalty under the Late Payment legislation (see our other documents).

HOW TO USE THIS DOCUMENT

 This is a MS Word document and is easy to use. The document uses blue text to provide extra guidance and notes and green text where you will customise your document to suit the circumstances in which it is used.
 

File Type: Word File