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Final Collection Letter

Final Collection Letter Template for Philippines

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Key Requirements PROMPT example:

Final Collection Letter

"I need a Final Collection Letter for an overdue software subscription payment of PHP 250,000, where the client has missed three payment reminders and we need to issue this before January 15, 2025; we want to include a one-time settlement offer of 90% if paid within 15 days."

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Document background
The Final Collection Letter is a crucial document in the Philippine debt collection process, representing the final formal attempt to recover outstanding debts before pursuing legal remedies. It is typically issued after multiple unsuccessful collection attempts and must strictly comply with Philippine regulations, including the Civil Code of the Philippines, the Consumer Act, and BSP guidelines on fair debt collection practices. This document is used when standard collection procedures have been exhausted and the creditor is prepared to take legal action. It should include comprehensive information about the debt, previous collection attempts, clear payment instructions, and explicit warnings about the consequences of non-payment. The letter must maintain a professional tone while firmly communicating the seriousness of the situation and the creditor's intent to pursue legal remedies if payment is not received within the specified timeframe.
Suggested Sections

1. Letterhead and Date: Official letterhead of the creditor/collection agency including complete contact information and the current date

2. Recipient Details: Complete name and address of the debtor, including any reference or account numbers

3. Subject Line: Clear indication that this is a final collection notice before legal action

4. Debt Information: Specific details about the outstanding debt, including original amount, current balance, interest, and fees

5. Payment History: Brief summary of previous payment attempts and communications

6. Payment Demand: Clear statement of the total amount due and the deadline for payment

7. Payment Instructions: Detailed information on how and where to make the payment

8. Legal Consequences: Clear statement of legal actions that will be taken if payment is not received by the deadline

9. Compliance Statement: Statement confirming compliance with Philippine collection laws and regulations

10. Contact Information: Specific details on who to contact for payment arrangements or disputes

Optional Sections

1. Settlement Offer: Include when authorized to offer a reduced settlement amount or payment plan

2. Dispute Rights: Include when required by specific regulations or when dealing with contested debts

3. Credit Reporting Notice: Include when reporting to credit bureaus is applicable

4. Third-Party Authorization: Include when the collection is being made on behalf of another entity

5. Previous Correspondence Reference: Include when multiple collection attempts have been made

Suggested Schedules

1. Statement of Account: Detailed breakdown of the debt, including principal, interest, late fees, and other charges

2. Payment History Schedule: Chronological list of all payments made and missed payments

3. Interest Calculation Sheet: Detailed calculation of interest charges and how they were applied

4. Supporting Documentation: Copies of relevant contracts, statements, or other documents proving the debt

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Banking and Financial Services

Insurance

Retail

Telecommunications

Utilities

Healthcare

Education

Real Estate

Professional Services

Manufacturing

Consumer Goods

Technology Services

Relevant Teams

Legal

Finance

Collections

Accounts Receivable

Risk Management

Compliance

Credit Control

Treasury

Customer Service

Operations

Relevant Roles

Credit Manager

Collections Supervisor

Accounts Receivable Manager

Financial Controller

Legal Counsel

Compliance Officer

Risk Manager

Credit Control Officer

Finance Director

Collections Specialist

Debt Recovery Officer

Account Manager

Treasury Manager

Chief Financial Officer

Legal Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Provides the fundamental rules governing obligations, contracts, and debt collection, including provisions on payment, default, and legal remedies available to creditors
Consumer Act of the Philippines (Republic Act No. 7394): Protects consumers from unfair debt collection practices, including harassment, false representations, and unfair methods. Specifically, Article 60 outlines prohibited collection practices
Data Privacy Act of 2012 (Republic Act No. 10173): Regulates the handling of personal information in collection letters, ensuring privacy rights are protected when processing debtor information
BSP Circular No. 454, Series of 2004: Provides guidelines for banks and financial institutions regarding appropriate collection practices and communication with debtors
Rules of Court (Rule 15): Governs the requirements for demand letters as prerequisites to legal action, including proper service and content requirements
Credit Information System Act (Republic Act No. 9510): Regulates how credit information can be used and referenced in collection activities
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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