A structured message used to communicate an outstanding balance to a debtor. It typically includes the amount owed, the original creditor, payment options, and a deadline for response. For instance, a creditor might send a detailed notice outlining the initial debt, any accruing interest or fees, and methods by which the debtor can remit payment, such as online portals, mail-in checks, or payment plans.
Such a communication serves as a formal record of attempted contact, helping ensure compliance with relevant regulations like the Fair Debt Collection Practices Act. The careful wording and documentation involved can help prevent legal challenges while fostering a higher likelihood of payment by clearly outlining the obligation. Historically, these communications were primarily sent via postal mail, but electronic communication has become increasingly common and efficient.