How to write a notice of legal action
Knowing how to write a notice of legal action is crucial for collecting customer payments. Use our template to streamline your communication process.
By now, you’ve put in much effort to collect customer payments. You’ve made numerous phone calls, sent emails, left messages, and even sent three collection letters.
Now, it’s time to let someone else take over—whether that’s a collection agency or the courts. You’ve already warned your customer about this in your third collection letter, and while sending a notice isn’t mandatory, doing so can help make the transition smoother for everyone involved. It may even prompt the customer to reach out to you.
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Sample template for a notice before legal action due to non-payment
Dear Mr. Smith,
At this time we still have not heard from you in regards to invoice #12345 for $___ which was due on ___. Nor have we gotten a response to numerous phone calls, emails, or the letters sent on ___,___, or ___.
Because we have failed in our attempt to work this out with you directly, I regret to inform you that we have reported this issue to the credit bureau and turned this invoice over to a collection agency who will be in contact with you in regard to the payment of this invoice.
Sincerely,
Jeanne Lee
XYZ Company
111-222-3333 x123
This notice of legal action is simple. At this stage, there’s not much left to say other than informing the customer that you won’t be handling the issue directly anymore. While it’s natural to feel frustrated, it’s essential to maintain professionalism and stay calm.
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The final step in your collection process
The notice of legal action is the last letter in our collection letter series. You can find links to the previous articles and examples below. Many businesses, especially those with numerous invoices to manage, struggle to send collection letters on time and keep track of overdue invoices and their aging status. Why? Most businesses still rely on outdated tools to track, manage, and act on their A/R data.
When companies use manual processes like aging reports and spreadsheets, collectors spend hours on data entry, spreadsheet upkeep, and other repetitive tasks. Instead, they could follow up with customers to confirm receipt of invoices or remind them of upcoming due dates.
Looking for a solution? Explore accounts receivable management software to help you quickly report on the status of your invoices, automate emails, schedule follow-up calls, and eliminate time-consuming administrative tasks.
