When you engage a collection agency or debt collection attorney, it is customary to first send a reminder to your client. This will let them know that your invoice has not yet been paid and that you still expect payment from them. On average, companies send between 1 and 3 reminders to customers who have not yet paid the invoice. But what are the rules regarding how many reminders to send?
Reminders to consumers
There is usually a different mentality when it comes to B2C communications compared with B2B. With regards to debt collection, this is also the same. When it comes to sending reminders to consumers, many countries have different rules and regulations. It is therefore important to do your research and make sure you check what you can and can’t do regarding business to consumer relations.
Reminders to companies
The common commercial approach for sending reminders to debtors, is to send one or two. Usually, if the first one is not replied to, many businesses often send a follow up. It is also general practice for example, in the UK, to send the letters from different members of the company, the first from the Key Account Manager perhaps and the second from the credit controller or CFO. This is to show that the issue is being escalated. In addition to sending a letter, we recommend you also call the debtor and ask why payment has not been made. It may simply be down to a miscommunication or there are problems that can be resolved quickly.
Reminders to international companies
In many EU countries, other rules often apply in the field of reminders. In some countries it is not even allowed to send multiple reminders. Always ask advice from an international debt collection specialist when sending reminders to foreign debtors.
Advice from our specialists
Would you like more information about sending a reminder? Get in touch. Our debt collection specialists and lawyers are happy to help you.