How to Send SMS Collection Messages to Clients With Outstanding Debt

Unsubstantiated cash flow can result in delayed payments and loss of overhead. Texts for outstanding debt collection may drive payments significantly higher than past-due mail or emails. Winning against other channels, 81% of the country uses SMS to communicate every day, making SMS a strategic channel to notify late payers of past due bills.

What Are Debt Collection SMS Texts?

Debt collection SMS texts are automated text messages that help companies and debt collectors communicate past due balances and outstanding payment reminders. When a client is past due on a payment, sending them a text is often the most efficient way to contact them. These texts may be educational about their account and then grow to become a fee reminder text if action is not taken. Texting is convincingly cost effective when compared to sunken costs if no payment is made.

Can Debt Collectors Text Legally? 

Be sure to obtain explicit consent from your clients/customers to send these text messages, and only send texts to those who have granted consent. The FTC takes debt collection very seriously and even established the Fair Debt Collection Practices Act (FDCPA) to protect individuals. There are a series of rules that debt collectors must abide by. Review the FDCPA before launching an outstanding debt reminder SMS campaign to make sure you’re complaint with the latest outstanding debt collection practices. 

Missed payments and credit card delinquencies on the rise, so debt collectors need to know the dos and don'ts of debt collection more than ever. Debt collection is necessary. Before you get started collecting debt, get to know debt collection practices for texting outstanding balances or using other methods.

Why Send SMS Payment Reminders? 

 Occasionally missed payments happen for the simple reason the customer forgot the due date or was under the impression they had paid the bill. In these cases, a simple reminder will do the trick and the late payer will typically resolve the issue the same day or week. All other cases often lead to debt collection. Using traditional methods, collectors send notice after notice without any response. The notices fall on deaf ears after a while. Your client has tossed them into the trash without a second thought. 

 For that reason, debt collectors use texts to bring in outstanding payments. SMS debt collection software, like Textedly, allows you to segment your late payers, increase visibility on past due reminders, provide clear messaging, among a multitude of benefits.

Common Benefits of Debt Collection SMS Texts

  1. Hyper-Segmentation - Segmentation allows you to distinguish messaging based on the stages of your late payers. Using Textedly you can bring in custom amounts due so that each user receives the information that brings them closer to payment. 
  2.  Visibility - debt collectors use texts to bring in outstanding payments because of the increased visibility. Since 98% of texts are read, texting past due messages exceed results traditionally used in collection. 
  3.  Short and Impactful - Texting conveys a message in less words and therefore challenges your collectors to get to the point and send the tone that is desirable. Texting can be warm and approachable for customers usually in good standing or stern and direct for frequent offenders. 
  4. Cost-effective Outreach - SMS messages used at scale can save companies or collectors on losing sizable payments. 
  5. Time-saving Automation - Let your debt collectors go after the big fish, while automation works for you at scale by texting thousands at once.

How Can Outstanding Payment Reminder SMS & Payment Due Texts Be Used?

The basis of this SMS collection method is to send detailed information based on what they owe and how you will follow up in the future using automated collection messages.
  1. Reminders Before Payment Due - Sending out one message before a payment is due allows customers to stay organized and pay on time. Afterpay sends out a message the day before. 
  2.  Use Customization Features for Account Details - 
  3.  Send a Series of Past Due Notification - With Textedly, you can easily schedule out a series of payment text reminders. Remain above board. Remember that some people just forget to pay. They might have missed a payment unintentionally. You do not want to harass them. The goal is to remind them of what they owe and when you can expect their payment. 
  4. Bring In Reinforcements - Just like with any other part of the company, all departments should fire on all cylinders. Texting may work for most users, but some clients haven’t caught on to any form of communication but snail mail. Texting outstanding debts is a part of the solution. 
  5. Thank Your Customer - It is also customary to thank the customer once they do make a payment and encourage a good relationship for the integrity of your company.
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Debt Collection Messages Examples

A Timeline of SMS Collection Debt Templates

  1. Due Tomorrow - Your {{COMPANY NAME}} PAYMENT OF {{COST}} IS DUE TOMORROW. Please ensure your card has sufficient funds or pay now at {{LINK}} 
  2. 15 Days Late “Dear {{NAME}}, your payment of {{AMOUNT DUE}} for account {{ACCOUNT NUMBER}} is now 15 days past due. Please pay now at {{LINK}} to avoid any fees.”
  3. 30 Days “Dear {{NAME}}, your payment for account {{ACCOUNT NUMBER}} is now 30 days past due. Please make your payment of {{AMOUNT DUE}} to avoid additional fees.” 
  4. 90 Days (Or final reminder) “Dear {{NAME}}, your payment for account {{ACCOUNT NUMBER}} is now 90 days past due. Please make your payment within two weeks. For more information call us at {{NUMBER}} or pay your balance due of {{AMOUNT DUE}} today.” 
  5. Legal Action Notice “LEGAL NOTICE: Your failure to make a payment has forced us to send you to collections. To avoid collections, please make a payment within 24hours at {{LINK}}.”

Your client will be more receptive to a text that notifies them of their options. Textedly offers a dashboard that makes it simple to customize your SMS alerts for all outstanding payments.

Join Textedly’s free trial and start using our user-friendly platform to send payment due texts!