What is a payment reminder

Sending a payment reminder is common practice when a payment has been overdue for a longer period of time.

A payment reminder is a part of the debt collection process, which involves the collection of overdue debts or invoices, where a debt collection notice and any reminders have already been sent.

The reminder essentially represents a final chance for the customer to pay before legal collection proceedings begin. The next step is to initiate forced collection through, for example, the forced sale of property and similar measures.

Reminder before payment reminder

Before taking the case to debt collection, you can send a reminder to the customer. It is wise to have routines for sending reminders for overdue invoices. This way, hopefully, you can avoid taking the case further.

Sometimes, it may simply be that the customer has forgotten about the payment.

Debt collection notice must be sent first

The collector is obliged to send both a debt collection notice and a payment reminder before such legal collection proceedings can take place, and there are strict rules for how this collection can be carried out for it to be valid.

Legal collection proceedings can take the form of an application for enforcement or by demanding that the customer be declared bankrupt through a bankruptcy notice.