[Your Name] [Your Address] [City, State, Zip Code] [Date] [Debtor's Name] [Debtor's Address] [City, State, Zip Code] Subject: Attempt to Collect Debt before Legal Action — Account #[Debtor's Account Number] Dear [Debtor's Name], I hope this letter finds you in good health and high spirits. However, it has come to our attention that there is an outstanding balance of [amount] on your account #[Debtor's Account Number], which remains unpaid despite our previous attempts to reach out to you. As a responsible citizen of New Mexico, it is crucial to address and resolve any financial obligations promptly. Therefore, we are reaching out to you one final time to inform you of the consequences that may arise if this debt is not settled within [X] days from the date of this letter. Our records indicate that this outstanding balance pertains to [Brief description of the debt: e.g., credit card debt accrued on [Specific Date], associated with [Creditor's Name]]. We understand that unforeseen circumstances can occur, leading to financial hardships; hence, we are willing to work out a mutually agreeable resolution. We kindly request that you contact our office at [Your Phone Number] within [X] days to discuss the repayment options available to you. Our dedicated team of professionals is ready to assist you in finding a suitable solution based on your current financial situation. Ignoring this communication will leave us no choice but to initiate legal action to recover the outstanding debt. New Mexico law permits creditors to take legal recourse for the collection of unpaid debts. Pursuant to the Fair Debt Collection Practices Act (FD CPA) and New Mexico state laws, we are obligated to inform you of the potential legal implications, which may include: 1. Legal complaint: We reserve the right to file a lawsuit against you in the appropriate court of law to collect the outstanding debt. This may result in additional costs being added to the total amount owed. 2. Wage garnishment: In the event of legal action, the court may order your employer to withhold a portion of your wages to repay the debt. 3. Asset seizure: Your assets may be subject to seizure, including but not limited to bank accounts, real estate, and vehicles, as permitted by applicable laws. 4. Damaged credit score: Failure to resolve this outstanding debt may result in negative reporting to credit bureaus, affecting your creditworthiness and future financial endeavors. We strongly encourage you to take this matter seriously and act upon it promptly to avoid any potential legal consequences. We believe that an amicable resolution can be reached, allowing you to clear your obligations in a manner that suits both parties. If you have recently made a payment that has not yet been reflected in our records, please disregard this notice. However, if you have any further questions or concerns, or if you wish to discuss your repayment options, please do not hesitate to contact us. We sincerely hope to resolve this matter without resorting to legal action. We believe that maintaining open lines of communication is the key to finding a mutually agreeable solution. Your cooperation is greatly appreciated, and we look forward to receiving your prompt response. Thank you for your attention to this matter. Yours sincerely, [Your Name] [Your Title] [Your Contact Information]
New Mexico Sample Letter for Attempt to Collect Debt before Legal Action
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How to fill out New Mexico Sample Letter For Attempt To Collect Debt Before Legal Action?
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FAQ
Debt collection is when a collection agency or company tries to collect past-due debts from borrowers. You might be contacted by a debt collector if you haven't made loan or credit card payments and those payments are severely past due.
Within five days after a debt collector first contacts you, it must send you a written notice, called a "validation notice," that tells you (1) the amount it thinks you owe, (2) the name of the creditor, and (3) how to dispute the debt in writing.
THIRD & FINAL COLLECTION LETTER SAMPLE Your accounts is now __ days past due and you owe a total of $573.25. I regret to inform you that unless we receive payment in full by ___ or work out an agreed upon payment plan by this date, we will have to turn your invoice over to a collection agency and/or our attorney.
Include your full name, company name, and mailing address. Address the letter to your client by their full name. State the problem: Specify and provide proof of the debt in question. Reference the original contract or agreement that states the services the client owes you for.
In other words, a Letter Before Action is a final demand letter that reminds your client or customer to make payment and requests one last time that they do so, before you take legal action.
Responding to a debt collection letter depends on the type of debt your creditors are claiming you owe. If you feel the amount of the proposed debt is correct and you can afford to pay it, do so. This will be a sufficient form of response and should halt any collection activity.
The Fair Debt Collection Practices Act defines a debt collector as ?any person who uses any instrumentality of interstate commerce or the mails in any business for the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due ...
An effective debt collection letter should include all of the following: The total amount the client owes you. The original date the balance was due. Instructions detailing how to make the overdue payment. The new due date, whether a specific date or as soon as possible.
