Collection Form Letter Template for England and Wales

A Collection Form Letter is a formal document used in England and Wales to request payment of outstanding debts. It must comply with strict regulatory requirements under UK law, including the Consumer Credit Act 1974 and FCA regulations. The letter serves as an official communication tool between creditors and debtors, providing clear information about the debt, payment requirements, and available options while maintaining professional standards and avoiding harassment.

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What is a Collection Form Letter?

The Collection Form Letter is a essential tool in the debt recovery process under English and Welsh law. It serves as a formal means of requesting payment while adhering to strict regulatory requirements. This document is typically used when initial payment terms have not been met and formal collection processes need to be initiated. The Collection Form Letter must include specific information about the debt, payment options, and debtor rights, while maintaining compliance with consumer protection laws and FCA guidelines. It represents a critical step in the debt collection process, often preceding any legal action.

What sections should be included in a Collection Form Letter?

1. Recipient Details: Full name and address of the debtor, including any reference numbers

2. Debt Information: Clear statement of the amount owed, origin of debt, and relevant dates

3. Payment Request: Formal request for payment including deadline and consequences of non-payment

4. Payment Methods: Available payment options and detailed instructions for making payment

5. Regulatory Disclosures: Required statements under FCA regulations and consumer protection laws

What sections are optional to include in a Collection Form Letter?

1. Previous Communications: References to prior contact attempts and responses - include in follow-up letters

2. Payment Plan Options: Alternative payment arrangements and installment options - include when flexibility is offered

3. Legal Notice: Information about potential legal action - include only in final notices

4. Dispute Resolution: Process for disputing the debt - include when required by circumstances

What schedules should be included in a Collection Form Letter?

1. Statement of Account: Detailed breakdown of debt including principal, interest, and any fees

2. Payment Slip: Detachable portion containing payment details and reference information

3. Information Sheet: Mandatory information about debt advice services and debtor rights

4. Supporting Documentation: Copies of relevant agreements or proof of debt where required

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

Jurisdiction

England and Wales

Publisher

Genie AI

Sector

Marketing

Cost

Free to use

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