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Notice of Credit Limit Letter Template

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Created by:

​[Sender.FirstName][Sender.LastName] ​[Sender.Company]​

Financial institutions will send a Notice of Credit Limit letter to a customer when they have exceeded their designated credit limit.

​[Document.CreatedDate]​

​[Client.FirstName][Client.LastName]​

​[Client.StreetAddress]​

​[Client.City], [Client.State]​

​[Client.PostalCode]​

Object: Notice of Credit Limit

Dear [Client.FirstName],

We hope that this letter finds you well. We are writing to you to bring to your notice the current state of your account balance at [Sender.Company].

Always maintain a warm, kind tone in your letter. This is only the first notice the customer will receive from your financial institution about exceeding their credit limit, so you want to remain professional, friendly and clear.

A review of your account indicates that you have a current balance of (amount) due to [Sender.Company]. Your current credit limit with [Sender.Company] is (amount), which puts you in excess of your limit by (amount).

It’s a good idea to attach a copy of their current balance so the customer can see exactly how much they’ve exceeded their designated credit limit.

You can also attach a copy of the credit policy and credit terms the customer agreed to when they opened an account with your financial institution.

At [Sender.Company], we carefully assess every individual's account in order to provide you with a credit limit we believe is consistent with both your interests as a customer and our interests as a financial institution. At present, we believe that your credit allowance of (amount) is appropriate for both of our interests.

If this client has exceeded their limit before, you can remind them here that they’re a repeat offender.

You can note the history of any changes to their credit limit here.

Unfortunately, since you have exceeded your credit limit at [Sender.Company] by (amount), we will be unable to extend your account balance further until we receive a payment from you that brings you back within the limits of your account.

If there are any other penalties for exceeding a credit limit, make sure you explain them clearly here.

We would also like to bring to your attention that since you have now reached your credit limit at [Sender.Company], the C.O.D. (cash on delivery) terms have changed. As such, we are now only able to ship future orders to you on a C.O.D. basis. This will continue in the future until you make a sufficient payment to reduce your account balance and bring your account at [Sender.Company] back in good standing.

C.O.D. stands for Cash on Delivery or Collect on Delivery. This means that the recipient must pay for the goods and/or services at the time of delivery.

In order to make a payment and return your account to good standing at [Sender.Company], please send us a check immediately for the excess amount due to the below address.

Please note that if you cannot send a check at this time, there are other means of payment that are available to you. If you would like to send a payment other than a check, we at [Sender.Company] can also accept the following forms of payment:

  • (another form of payment)

  • (another form of payment)

  • (another form of payment)

  • (another form of payment)

Make sure you include all the ways the client can make a payment to your company here.

If you believe there is a justification to increase your available credit line at [Sender.Company], we invite you to please reach out to us either through phone, email or post mail. We will then be happy to discuss possible increases to your credit limit with you.

For your reference, please find below some of the most common reasons accounts are deemed eligible for credit limit increases at [Sender.Company]:

  • You always make your payments on time.

  • You do not have any over-the-limit purchases.

  • You often pay more than the minimum monthly payment.

  • You have a strong credit score.

  • You have recently had an increase in accounts receivable.

For your reference, please also find below some common reasons that requests for a credit limit increase may be denied:

  • You have been late with your payments on one or more of your accounts at [Sender.Company] and/or other institution(s) within a 12-month period.

  • You have a high balance relative to your credit limit on one or more of your accounts at [Sender.Company] and/or other institution(s).

  • You have opened several accounts at [Sender.Company] and/or other institution(s) in the last 1-2 years.

  • You have too much available credit at [Sender.Company] and/or other institution(s).

  • You have recently applied for a credit limit increase at [Sender.Company] and/or other institution(s).

There are many different reasons that requests for a credit limit increase can be denied. If there are specific reasons relevant to your financial institution, make sure you list them here.

If you would like to contact us to discuss an increase to your available credit line or to discuss any other details of your account at [Sender.Company], we invite you to please reach out to us via phone. You can also send us an email or a letter. Please find the pertinent phone number, email address and mail address below.

If you have a preferred method of contact, share those details here.

We hope you understand the need for this action. We await the receipt of your immediate payment to rectify your account balance and bring your account at [Sender.Company] back into good standing.

We thank you for your attention, and we are confident that you appreciate the need for this action.

We kindly await your payment.

Yours sincerely,

​[Sender.FirstName][Sender.LastName] ​[Sender.Title][Sender.Company]​

​

Signature
MM / DD / YYYY

​[Sender.Email][Sender.Phone]​

​[Sender.Company]​

​[Sender.StreetAddress][Sender.City], [Sender.State][Sender.PostalCode]​

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Notice of Credit Limit Letter Template

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Notice of Credit Limit Letter Template will help Financial institutions to write a letter that will be sent for the customer.

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