Collection letters are critical communications for notifying consumers of outstanding debts. These documents have many regulatory requirements regarding the content. As a result, those in the ARM (Accounts Receivable Management) industry need to ensure that their collection letters are effective. But what does “effective” mean? In this episode of Ask the Experts, Area VP, Solutions Partner Anthony Faldetta provides the answer.

“A collection letter should be broken down into a couple of different segments with design flow in mind and color. They should be designed with compliance in mind and ensuring the eyes go to certain parts of the letter, so you want to draw attention to these specific areas without overshadowing the content of the letter,” Anthony explained.

Color can be a crucial element to include. Anthony said, “Adding color to letters helps draw attention to these areas as well as create a lift for many of our clients. When clients add color, each one has come back and said they received 15 to 30 percent lift in letter response..”

As you can see, design is vital to better engagement with communications and ensuring receivers understand all information regarding the debt owed. Design aspects must also meet compliance requirements, but there is flexibility to ensure collection letters are easy to read and comprehend. Watch the video for more insights.

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