Profile information Account settings
Sign up Log in

MAKE YOUR FREE Second debt recovery letter

  • Make your document in minutes
  • Access from any device
  • Securely sign online
Make document

How to make a Second debt recovery letter

Make sure you follow the right steps to recover a debt that is owing to you or your organisation after you have already issued a payment reminder with this second late payment letter. By using a payment reminder letter you can feel assured that you have formally reminded and requested your client or customer to make payment. This second reminder letter details all the necessary information from the date the debt is owing to whether interest will be payable to even the threat of further action if the debt is not paid.

Use this second debt recovery or payment reminder letter to:

  • recover a debt that is owing to you or your organisation
  • take further action after a first payment reminder letter has been sent and the debt remains outstanding
  • commence a more formal procedure for collection of the debt

This second debt recovery letter covers:

  • the amount owing (the debt)
  • the date the debt owing should have been paid
  • whether interest is payable on the debt
  • automatic calculation of the amount of interest to be paid in total
  • automatic calculation of the continuing daily amount of interest charged as long as the debt remains unpaid
  • a threat of further action which may be taken if the debt is not paid

A second debt recovery letter or late payment letter is a letter to remind your client or customer for the second time that they owe you or your organisation. It sets out the details of the debt such as the date the debt owing should have been paid, whether interest is payable in the debt and a reminder that if the payment is not settled a legal action may follow.

You need this letter when you have already sent a letter to your client or customer reminding them to pay outstanding debt. This is a second reminder to your customer to pay the debt, ensuring that they understand the consequences of not settling the payment (which includes late payment interest charges (for business transactions) and/or a threat of legal action.

You need to send two letters to a client or consumer before you can issue a 'final demand letter', which is the last step before taking formal action to recover the debt.

As is the case with the initial debt recovery letter, you can use this letter to further a debt recovery process from both individuals and organisations whether in the course of business or not.

Where there is no contractual interest, you can only charge interest on late payments if it's a business to business transaction and statutory interest applies. Statutory interest is 8% plus the Bank of England base rate and may be subject to changes. You cannot claim statutory interest if your customer is a consumer and not acting in the course of business. In such scenarios, you can only claim interest if the contract sets a contractual rate (ie late payment rate specified in the contract).

Unlike the First debt recovery letter, this second reminder will request that the debtor settle their bill immediately.

If after you have sent this second letter and your debtor has still not settled their account, you should issue a Letter before action.

Ask a lawyer for advice:

  • on debt recovery procedures and dispute resolution
  • on debt recovery outside England and Wales
  • as to whether an insolvency procedure is appropriate

This letter is used with debts based in England, Wales or Scotland.

Other names for Second debt recovery letter

Second overdue payment reminder, Second payment reminder letter, Second reminder about unpaid invoices.