Debt Collection & Recovery Playbook

Generate compliant debt recovery strategies, collection letter sequences, and payment plan frameworks.

What This Does

• Creates FDCPA/FCA-compliant collection letter sequences (initial notice → escalation → final demand)
• Builds payment plan calculators with interest modeling
• Generates aging bucket analysis with priority scoring
• Produces skip tracing checklists and debtor communication scripts
• Maps state-by-state statute of limitations
• Creates bad debt write-off decision frameworks

How To Use

Tell the agent what you need: - "Generate a 5-letter collection sequence for B2B invoices" - "Build a payment plan for $47,000 over 12 months at 8% APR" - "Create an aging analysis for our receivables" - "What's the statute of limitations for debt in California?"

Collection Letter Sequence

Letter 1 — Friendly Reminder (Day 1-7 past due)

Subject: Invoice [#] — Payment Reminder

Quick note — invoice [#] for [amount] was due on [date]. Sometimes things slip through. If already sent, disregard.

Payment options: [link/details]

Letter 2 — Firm Follow-Up (Day 15-21)

Subject: Invoice [#] — Second Notice

Following up on invoice [#] for [amount], now [X] days past due. Please arrange payment by [date] to avoid late fees per our agreement.

Letter 3 — Escalation Notice (Day 30-45)

Subject: Invoice [#] — Action Required

Invoice [#] for [amount] is now [X] days overdue. Per our terms, a [X]% late fee of [amount] has been applied. Total now due: [amount].

If we don't receive payment by [date], we'll need to escalate this matter.

Letter 4 — Pre-Collection (Day 60)

Subject: Invoice [#] — Final Notice Before Collection Action

This is formal notice that invoice [#] totaling [amount] remains unpaid after [X] days. Without payment by [date], this account will be referred to our collection partner.

This may affect your business credit rating.

Letter 5 — Final Demand (Day 75-90)

Subject: Invoice [#] — Final Demand

Final notice. Invoice [#] for [amount] will be referred to [collection agency/legal counsel] on [date] if not resolved. Contact us immediately to discuss resolution options.

Aging Bucket Analysis

Bucket	Days	Priority	Action	Expected Recovery
Current	0-30	Low	Auto-reminder	95-98%
31-60	31-60	Medium	Phone + email	85-90%
61-90	61-90	High	Escalation letter	70-75%
91-120	91-120	Critical	Collection agency	40-50%
120+	120+	Write-off review	Legal/write-off	15-25%

Priority Score Formula

Score = (Amount × 0.4) + (Days Overdue × 0.3) + (Customer Value × 0.2) + (Payment History × 0.1)

• Score > 80: Immediate personal outreach
• Score 50-80: Escalation sequence
• Score < 50: Standard auto-sequence

Payment Plan Framework

For debts over $5,000, offer structured plans:

Plan	Duration	Interest	Min Payment	Best For
Quick	3 months	0%	33% of balance	Good-faith debtors
Standard	6 months	5% APR	~17% + interest	Mid-range balances
Extended	12 months	8% APR	~9% + interest	Large balances
Hardship	18 months	0%	Negotiated	Proven inability to pay

FDCPA Compliance Checklist (US)

• [ ] Initial validation notice sent within 5 days of first contact
• [ ] Debtor's right to dispute within 30 days clearly stated
• [ ] No contact before 8 AM or after 9 PM local time
• [ ] No contact at workplace if debtor objects
• [ ] No threats of actions you can't/won't take
• [ ] No misrepresentation of amount owed
• [ ] No harassment, oppression, or abuse
• [ ] Cease communication upon written request (except legal notices)
• [ ] Mini-Miranda warning included in all communications

Statute of Limitations by State (Top 10)

State	Written Contract	Oral Contract	Open Account
California	4 years	2 years	4 years
New York	6 years	6 years	6 years
Texas	4 years	4 years	4 years
Florida	5 years	4 years	4 years
Illinois	10 years	5 years	5 years
Pennsylvania	4 years	4 years	4 years
Ohio	8 years	6 years	6 years
Georgia	6 years	4 years	4 years
Michigan	6 years	6 years	6 years
North Carolina	3 years	3 years	3 years

Bad Debt Write-Off Decision

Write off when ALL of these are true: 1. Account is 180+ days past due 2. All collection attempts exhausted (minimum 5 contacts) 3. Skip tracing returned no viable contact 4. Amount is below legal action threshold (typically < $5,000) 5. Cost of recovery exceeds expected recovery amount

ROI of Professional Collections

• In-house collection cost: $15-25 per account
• Agency contingency: 25-50% of recovered amount
• Legal action: $500-2,000 per case + court fees
• Break-even: Agency makes sense when balance > $1,000 and account is 90+ days

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Take It Further

This skill gives you the collection framework. For full industry-specific automation — including AI-powered payment reminders, predictive churn scoring, and automated escalation workflows:

• AI Context Packs — $47/pack, 10 industries covered
• AI Revenue Leak Calculator — Find where you're losing money
• Agent Setup Wizard — Deploy your first AI agent in 15 minutes

Bundle Deals

• Pick 3 Packs — $97 (save $44)
• All 10 Packs — $197 (save $273)
• Everything Bundle — $247 (all packs + playbook + setup wizard)