Loan Default Notice Letter

Subject: Notice of Loan Default

We regret to inform you that your loan, under account number [Account Number], has been classified as in default as of [Date]. This action has been taken due to non-payment of the monthly installments, and we are compelled to address this situation in accordance with the terms of your loan agreement.

Details of Default:

• Loan Amount: [Loan Amount]
• Outstanding Balance: [Outstanding Balance]
• Number of Missed Payments: [Number of Missed Payments]
• Date of Last Payment: [Date of Last Payment]

As per the loan agreement, payments are due on the [Due Date] of each month. Failure to make timely payments has led to the current status. We kindly request that you remit the outstanding amount immediately to avoid further action.

Consequences of Continued Default:

• Additional Fees: You may incur late fees and other charges as specified in your loan agreement.
• Credit Impact: Your credit score may be negatively affected, impacting your ability to secure future credit.
• Legal Action: Continued failure to pay may result in legal proceedings to recover the owed amount.

Action Required:
Please contact our office at [Phone Number] or [Email Address] to discuss your account and make arrangements for payment. We are open to discussing possible solutions such as a revised payment plan or other options to resolve the situation amicably.

We understand that financial difficulties can arise, and we are committed to working with you to find a resolution. Your prompt attention to this matter is crucial to avoid further complications.

Thank you for your immediate attention to this serious matter. We look forward to your response.

Sincerely,
[Your Name]
[Your Title]
[Your Company]
[Company Address]
[Phone Number]
[Email Address]