This post covers a Letter to discontinue service to client.
Clients are the lifeblood of any business.
They are the ones who bring money into your business.
No client no business.
But I’m sure, not all of them are worth your service.
Imagine dealing with a stubborn client, who calls you every time, he does not abide by your appointments, a much know, you name it.
Give yourself a break.
FIRE that idiot!
Write him a formal letter to discontinue your service.
But you have to note that, firing a client involves both, legal and financial risks.
You have to do it carefully.
And it is from this perspective that I believe it quite unfair to just share with you templates and examples of letters to discontinue service to clients without providing you with a guide on how to manage this intricate legal process that could cost your business.
Therefore here I will take you through
- What is Letter to discontinue service to client
- Why do you need to write a letter to discontinue service to client
- Things to consider before writing your letter
- How to write an effective letter to discontinue service to client
- Letter to discontinue service to client sample
Let’s get started
Read also: Price increase letter (guide + free samples)
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What is Letter to discontinue service to client?
A Letter to discontinue service to client is a brief statement of facts written by a service provider to terminate a client relationship.
Even though you can end a client relationship over the phone or in person, you must always send a letter to that effect
This not only aids in your professional conduct but also safeguards you against future legal disputes.
All pertinent information about the client’s termination, including the grounds for the discontinuation (optional), the services that were ceased, an effective date, etc., should be included in your letter.
Why do you need to write a letter to discontinue service to client
The following is why you need to write a discontinuation letter to your client
- For compliance issues. This letter will help you comply with any notice requirement provided under your service agreement or engagement letter
- It is the simplest way to record the circumstances of service discontinuation.
- It will help to protect your business if any legal issues arise in the future.
Things to consider before writing a letter to discontinue service to client
The following are the important things to consider before writing a letter to discontinue service to your client
Refer to your binding agreement
Any agreement between two people, especially a business agreement is presumed to be governed by a written binding agreement.
In our case, it may be a service contract or an engagement letter
To save your face you have to abide by all provisions of your agreement whenever you are about to do anything regarding your relationship.
Therefore you should thoroughly analyze your agreement before taking any action to terminate a client.
The discontinuation of the service might be subject to fees or other financial consequences.
You must follow any guidelines for terminating the agreement- notice requirement, the length of notice, where to send it, etc.
Recognize the applicable laws
Your right to fire a client is governed by the terms of the agreement, state and federal laws
Depending on your sector- legal, Accounting, Real Estate, IT, etc you have to abide by all rules that govern the relationship with your client- I’m talking about the Code of Professional Conduct and stuff like that
Failure to do that is detrimental to your business’s prosperity.
Organize your proof
You should provide factual justification for your decision to discontinue service to your client.
The grounds for discontinuation must be legitimate and meet the state’s requirements for “good cause.”
For instance, you should present evidence to support a client’s recklessness if the client has not completed its obligations.
Examine your evidence
The next step after gathering your evidence is to decide whether it supports your hypothesis and is persuasive enough to continue with.
It’s common for evidence to be untrustworthy.
After your examination, you ought to be able to decide whether the client generally achieved the business outcomes you had anticipated.
NB: you will need to organize and reviewed your evdnce only when you want to write a strong discontinuation letter which is support with vivid evidence. Otherwise obeying the law and your agreement is very enough to get you started compose your letter
How to write an effective letter to discontinue service to client
A letter to discontinue service to client is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the client’s address, and state that you are writing to discontinue your service, provide the reasons for discontinuation, and include any further steps to be taken.
Finish your letter with SINCERELY followed by your name and signature.
REMEMBER the aim of your service discontinuation letter is to legally terminate the client
Therefore, to write an effective letter to discontinue service to client do the following
- Provide your name, address, and contact information
- Include the date of the letter
- Include the client’s, name, address, and contact information
- Open your letter by stating clearly that you are writing to end your business relationship
- Indicate the effective date of discontinuation
- Explain the reasons for discontinuation
- Explain the rights of the client upon termination
- Make reference to your service agreement or letter of engagement.
- Explain what you want the client to do in response to your letter
- Attach any necessary documentation
- Be concise and to the point
- Maintain a professional tone
- Be honest
Letter to discontinue service to client sample
City, State, Zip Code
[Client’s Street Address]
[Client’s City, State, and Zip Code]
Dear [Client’s last name]
Please be informed that as of [Date], [Firm Name] will no longer provide services to you on a professional basis and will discontinue our relationship due to [reasons-optional].
Our service to you included [list services provided]
Our company is currently working on the following projects for [Client Name] as of the date of this letter
[list of work in progress]
We do not currently have any work for [Client Name] in progress as of the date of this letter.
Our company is still owed $[XXX] for the [Name of service rendered] to you.
All original documents that you gave us in connection with earlier engagements have since been returned to you. We will preserve our working paper files in accordance with our firm’s record retention policy. These files are the property of our firm. All of the original documents that were given to us for [Client Name] are enclosed. They consist of the following:
[Describe/list the client’s original records to be returned]
Please be aware that on [Date], your access to your client portals will expire. Up until this point, you can access copies of the records in the portal. We will preserve our working paper files in accordance with our firm’s record retention policy. These files are the property of our firm.
Please direct all of your questions regarding this letter through [email] or [phone]
Thanks for your understanding regarding this matter.
Letter to discontinue service to client pdf