There will be times when a customer asks for an ‘extension of time’ to make a payment on an agreed loan payment shcedule. It is up to you as the lender to decide if you are prepared to make that concession. There willl sometimes be extenuating circumstances where you will feel that this can be agreed upon as a one-off, but there will also be times when you do not want to offer this provision under any circumstances.
You can find a letter accepting a request for an extension of time here.
The following sample letter can be used to refuse their request.
Denial of Request for Extension of Time letter – sample 1
*To someone who has requested this before
Dear [name of borrower]
Thank you for your recent communication requesting an extension of time to make your payment due on (dd/mm/yyyy).
I/we would refer you to my/our letter to you dated (dd/mm/yyyy) in response to a request from you to defer your then due payment. That letter confirmed my/our terms for allowing you a one time only extension of time to make a single payment. The terms included the statement that you accepted in your subsequent response which read, “ALL subsequent payments must be made on or by the original agreed dates”
I/we are not able to offer you any assistance at this time and must reject your request for a further extension of time to pay. Consequently, If we are not in receipt of your required payment by the due date, we will have no option but to instigate recovery procedures for payment of the full outstanding balance.
Yours Sincerely,
[Name of Sender]
[Title]
[Company Email]
Denial of Request for Extension of Time letter – sample 2
Dear [name of borrower]
Thank you for your recent communication requesting an extension of time to make your payment which is due on (dd/mm/yyyy).
We looked at your payment records carefully and have found that you are already overdue on your account and it has been [length of time] since your last payment. According to our terms and conditions, which you signed and accepted at the time of the initial loan, you can only be in arrears by a maximum of [number of payments or months] after which the full total of the loan plus interest will become due.
We are very sorry but your request is denied and we must ask for the payment to be made on time.
Sincerely Yours,
[Name of Sender]
[Title]
[Email]
[Phone Number]
Denial of Request for Extension of Time letter – sample 3
[Date]
Dear [Name of Recipient],
We are writing to inform you that your request for extension of time for your [type of loan] was denied because of reasons mentioned below:
[List reasons for denial here]
We pride ourselves on listening to our customers when they make requests of us but there are times when this particular request cannot be agreed to. However we do want you to know why we have made this decision.
We are sorry for any trouble that this decision will cause you, but we also need to focus on the needs of the company as a priority.
Thank you for understanding.
Yours Truly,
[Name of Sender]
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