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Debt Collection Form Letter for the United Kingdom

Debt Collection Form Letter Template for England and Wales

A formal written communication governed by English and Welsh law, designed to request payment of outstanding debts. The letter adheres to FCA guidelines and regulatory requirements, including proper identification of parties, clear statement of debt details, and statutory notices. It includes mandatory information about payment options, dispute procedures, and debt advice services while maintaining a professional and non-threatening tone in compliance with UK debt collection regulations.

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What is a Debt Collection Form Letter?

The Debt Collection Form Letter is a essential tool in the debt recovery process under English and Welsh law. It serves as the primary formal communication method between creditors and debtors, typically used when previous informal attempts to collect payment have been unsuccessful. The letter must comply with strict regulatory requirements set by the Financial Conduct Authority (FCA) and include specific statutory information while maintaining a professional and non-threatening approach. It's designed to clearly state the debt amount, provide payment options, and inform debtors of their rights and available debt advice services.

What sections should be included in a Debt Collection Form Letter?

1. Creditor Details: Full legal name, address, and contact information of the creditor

2. Debtor Details: Full name, address, and account reference of the debtor

3. Debt Information: Original debt amount, current balance, interest rates, and payment history details

4. Payment Demand: Clear statement of amount due and payment deadline

5. Payment Options: Available methods and instructions for payment

6. Statutory Rights Notice: Required information about debtor's rights under consumer protection laws

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

1. Payment Plan Options: Alternative payment arrangements and installment options for cases where full immediate payment isn't possible

2. Legal Consequences: Information about potential legal actions if payment isn't received within the specified timeframe

3. Complaints Procedure: Information about how to raise disputes or complaints regarding the debt

4. Vulnerability Statement: Information for vulnerable customers about additional support and options available

What schedules should be included in a Debt Collection Form Letter?

1. Statement of Account: Detailed breakdown of debt accumulation, charges, and payment history

2. Payment Slip: Pre-formatted slip containing payment details and reference numbers

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

4. Proof of Debt: Documentation evidencing the original debt and its assignment (if applicable)

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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