Arrears, reminders and demand letters
Listen to this lesson
Nigerian voice narration
Fictional training case. Loan officer Grace at Harvest Community Bank, Onitsha, must contact nine SME borrowers who are between 15 and 60 days past due on fictional facilities, with the timing and next action determined by the applicable approved process. Work through the example, identify the evidence needed and practise the method with cleared or synthetic inputs. Any additional figures in the explanation are separate practice examples, not claimed rows in a downloadable file.
Worked example
Grace prompts: 'Draft a 3-step arrears sequence: friendly reminder, firm follow-up, formal demand citing the default clause in Clause 7.2 of the offer letter. Facility ref [XXX], respectful tone, no threats.' The AI drafts three letters. Grace notices the 'formal demand' draft includes a line saying 'failure to pay will result in immediate asset seizure' — she removes this, since seizure requires a separate legal process the bank has not yet initiated, and replaces it with 'may result in referral to our recoveries unit per Clause 7.2'.
The method
A tiered sequence — friendly, firm, formal — mirrors how relationships actually escalate and gives the customer fair warning at each stage. Letters should cite the specific clause in the signed offer letter, not general threats, and must never promise actions (like seizure) that have not been legally triggered. Always ask AI to re-check a draft specifically for aggressive or overpromising language before it goes out.
Worked practice and common mistakes
The sequence follows the signed terms and your authorised process, not a universal 15-, 30- or 60-day timetable. An AI-generated clause number or recovery right is not authority. Check overdue amount, notice service, prior contact and what action is actually permitted. If a draft threatens immediate seizure without authorised basis, remove it and seek review rather than replacing it with another unverified remedy.
Review before using the result
Grace's revised formal demand for Facility Ref HCB-0452 cited Clause 7.2, stated the ₦1,250,000 overdue amount, and referenced 'possible recoveries unit referral' instead of the AI's overreaching 'asset seizure' line.
Your workplace practice
Use the recommended free assistant with this lesson's fictional example. Draft a 3-step arrears communication sequence (friendly reminder, firm follow-up, formal demand) for a past-due facility, citing the default clause. Respectful, compliant, no threats. Facility ref [XXX]. Keep a copy of the input and draft. Compare the result with the verification steps above, record any correction, and retain placeholders where evidence is missing. The expected result is a checked draft for human review, not an automatically approved decision. Course examples and practice responses are fictional; amounts, dates, rules and thresholds are not official guidance or supplier quotations.
Open Claude (free tier) and paste this prompt there. Firm but respectful letters — important for regulated communication.
Draft a 3-step arrears communication sequence (friendly reminder, firm follow-up, formal demand) for a past-due facility, citing the default clause. Respectful, compliant, no threats. Facility ref [XXX].
Why this tool: Firm but respectful letters — important for regulated communication.
Hit a free limit? Switch to ChatGPT or Gemini and continue — the prompt works in any assistant.