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The Past Due Invoice Collection Letter is a essential business document used when previous attempts to collect payment have been unsuccessful. It serves as a formal written demand for payment of overdue invoices, typically sent after the payment term has expired and initial reminders have been ignored. This document must comply with U.S. federal regulations, particularly the Fair Debt Collection Practices Act (FDCPA), as well as applicable state laws governing debt collection practices. The letter should include specific details about the debt, including invoice numbers, dates, amounts, and payment instructions, while maintaining a professional tone that encourages payment while preserving business relationships. It represents a crucial step in the accounts receivable process, positioned between informal reminders and more serious collection actions such as engaging collection agencies or pursuing legal remedies.
