LETTER OF AUTHORIZATION TO COLLECT MONEY

Writing a Letter of Authorization to Collect Money on your Behalf When you need a party to be able to collect money on your behalf, it is vital to provide clear and specific authorization. Ensuring the person you are authorizing is noted within the letter is just one step. When…

LETTER OF AUTHORIZATION TO COLLECT MONEYWriting a Letter of Authorization to Collect Money on your Behalf

When you need a party to be able to collect money on your behalf, it is vital to provide clear and specific authorization. Ensuring the person you are authorizing is noted within the letter is just one step. When crafting a letter of authorization to collect money, you will need to state the details of the payment they are authorized to receive.

Begin your letter with a summary of your contact information. This will include your name, address, phone number, and possibly your email address. Then, list the current date to show when permission was given. Follow this information with a summary of the contact information for the person or entity you are addressing. If the person will be retrieving money from an institution, such as a bank, you can choose to list the information of the local manager or other person in authority.

Within the introductory paragraph, get straight to the point. State that you, as “I” in the letter, give the person you are authorizing permission to retrieve the payment in your place. Make sure you include the full, legal name of the person who will be acting on your behalf, as they will likely be asked to provide picture ID verification of their identity. When referencing the money to be collect, be specific about the amount and/or the nature of the monies.

If the person is retrieving a paycheck, and you do not know the exact amount in the check, clearly refer to the nature of the check as such; the check for my first week’s wages in the month of July. Alternatively, if you know the amount will be $326.78, include that precise amount in the letter.

Your next paragraph should include permission for the person to sign that they have received the check or monies on your behalf. Without express permission to sign on your behalf, they may not be able to complete the necessary processes to retrieve your monies. Close this paragraph with a statement of the date the person will arrive to retrieve the payment.

When you close the letter, you may wish to reiterate that they can contact you with any questions, if you will be available to answer them. This may apply in situations where injury or illness is preventing you from being able to come in person, but you will be accessible by phone. If you may not be immediately available, this may delat the person’s ability to collect your payment.

Finally, you will want to have your name printed across the bottom, with room for your signature above. This will close out the letter. Now you letter includes everything most institutions would require in order to release your monies to the person you’ve selected.