Arrears and collections letter templates
Plain, supportive letter and message templates for the early stages of arrears, written to open a conversation and offer help, not to pressure. Adapt the wording and required regulatory information to your firm.
Why it matters
Early, human contact produces better outcomes than aggressive collection, and the Consumer Duty expects firms to support customers in difficulty. Good first contact tends to recover more and harm less.
What to include
First missed payment (gentle reminder)
A short, friendly note: we noticed a payment did not go through, these things happen, here is how to pay or to talk to us, with contact details and no threat.
Second contact (offer to help)
Acknowledge it may be a difficult time, set out the support available (payment plans, breathing space, forbearance), and make it easy to get in touch.
Signposting to free debt advice
Always include a line pointing to free, independent debt advice (for example MoneyHelper or StepChange) and make clear that asking for help will be treated supportively.
Arrangement confirmation
Confirm an agreed plan in plain language: what was agreed, the new amounts and dates, and that it will be reviewed.
Tone and compliance checklist
Keep language plain and non-threatening, include the regulatory information your product requires, offer accessible formats, and record the contact. This is a starting point, not legal wording.
This template is general guidance to help you structure your own document. It is not legal, regulatory or compliance advice, and it is not a substitute for your own policies or professional advice. Adapt it to your firm, products and current regulatory requirements.
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