How and when to send a collection letter?

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This is a very common scenario in retail: a customer buys on credit and, after a few months, stops paying the installments. To avoid losing money, the store owner decides to send a collection letter.

But what many entrepreneurs don't know is that there are different ways to collect a debt .

Collection can be carried out via SMS, email or Negative Credit Notice Letter . It is also possible to send an Extrajudicial Collection Letter . However, in the latter case, the defaulting customer must be registered with the SCPC .

A company's financial health is directly linked to its 99 acres database rate . When this rate is above 3%, strategies need to be improved.

See below how and when to send collection letters.



What is a collection letter?


A collection letter is a mechanism used by companies to recover credit granted to a customer.

In other words, every business that sells on credit, takes out loans or financing uses this tool to collect debts.

Not long ago, debt collection letters were only sent by post. However, new technologies have given rise to other formats, such as debt collection notifications via SMS or email.

We can also divide collection letters according to their purpose.

The Negative Registration Notice Letter is sent immediately after a defaulter is registered with the SCPC. Its purpose is to notify the debtor that his/her CPF is negative.

The Extrajudicial Collection Letter is sent when there is no response after registration with the SCPC. In other words, even though the debtor has a negative credit rating, he or she has not sought out the company to pay off the debt. The purpose of the NEJ letter is to inform that the institution is willing to negotiate without interference from the judiciary.

In both cases, the defaulter must contact the company to regularize the situation. The negotiation takes place without intermediaries, that is, only between the customer and the creditor.



Differences between Warning Letter and NEJ Letter


As we have seen, Warning Letters and NEJ Letters act at different times and there are also differences in the ways they are sent.

While Notice Letters are sent to the address provided at the time of sale, NEJ Letters may have their address changed. This point is important because, in some cases, this information may be out of date, compromising the effectiveness of the collection.

The content of the notifications also differs. Warning Letters follow a single standard. NEJ Letters, in turn, have 3 models: light, moderate and heavy.

Please note: it is not permitted to send extrajudicial collection notices to defaulting customers who are not registered with the SCPC. First, report the debtor, then send the NEJ Letter.

Neither the Notice Letter nor the NEJ Letter need to be notarized. To send them, please contact the ACP .



When to send a Notice Letter?


To answer this question, we need to address the collection rule . This strategy is adopted to organize the credit recovery process in stages.

When the charge is divided into parts, we avoid conflicts with the consumer and increase the chances of getting our money back.

But how do you define a collection rule?

The first step is to analyze the operation and the segment .

In many cases, the customer simply forgot to pay a bill. This is quite common in everyday services, such as telephone and electricity.