Sample Recovery Letter 3

THIRD LETTER

Member’s Details:

Name  ____________________                                C.U.No  ____________

Original Loan: £______________                   Date    ______________

Current Loan Balance £______________      Date    ______________

Address           ____________________

____________________

____________________

WITHOUT PREJUDICE

Dear

OUTSTANDING LOAN ACCOUNT

requesting payment of the above overdue Loan Account. However the overdue amounts (plus interest) are still outstanding, and we have received no explanation as to why payment has not been made.

According to the policy of the Credit Union Board of Directors your loan is now formally declared in default and is therefore fully repayable (with interest) under the terms of your Loan Agreement. The entire amount of your loan (plus interest) is now immediately due and payable.

One of the consequences of being formally declared in default is that pursuant to Rules 39 and 40 and the terms of your Loan Agreement, we are able (without further reference to you) to set-off all your shares less £1 against this debt (plus our costs and expenses). Accordingly, your shares will be forfeited to repay the loan plus interest costs and expenses. However, I am enclosing a Share-to-Loan Transfer Authorisation form to enable you to implement this transfer yourself. Please complete and return it to the Credit Union within seven days. Failure to do this will leave us with no choice but to transfer your shares without further reference to you.

Encl. Share to Loan Transfer Authorisation Form