Q&A from the Bais HaVaad Halacha Hotline

Credit Limits

August 28, 2025

Q Someone that owes me money has defaulted on the debt. May I send him statements in the mail to remind him of his long-overdue obligation?

A We are commanded in the Torah: “When you lend money to My people, to the poor person who is with you, do not act toward him as a creditor…” (Shmos 22:24). This means that if you know your debtor cannot repay the loan, you may not demand payment from him, as doing so would be humiliating (Rashi ibid.).

In addition to refraining from demanding payment from borrowers without the capacity to pay, lenders are expected to show them special consideration. For example, the lender should not even appear before the debtor, as this could cause him embarrassment (Bava Metzia 75b, C.M. 97:2). The poskim do not differentiate between verbal and written demands.

The Aruch Hashulchan (97:2) says that if time has passed and the debtor has become accustomed to being in debt, the prohibition does not apply, as asking does not add to his pain or embarrassment. But this is only permitted if the lender does not intend to pressure him. (This may apply to your situation.)

R’ Moshe Sternbuch (Tshuvos Vehanhagos 5:368) concludes based on the Rishonim that the prohibition applies only to debts arising from loans. If the debt originates from a purchase on credit, there is no prohibition. Still, he advises against pursuing the debt if you do not need the money, as this would cause unnecessary pain to another person.

If the debtor wrote a check that bounced, Rav Sternbuch (ibid.) maintains that there is no prohibition against demanding payment, because giving someone a check generates an obligation to pay, independent of the original loan.

Even if you engage an outside company to send the statements, it is forbidden to demand payment from a debtor without means (see C.M. 99:4).

To recover your losses, you may be permitted to assign the debt to a non-Jewish collection agency, even if the agency sends harassing letters. This is because when you assign the debt, you are selling it to the collection agency, and once they own it, they may manage its collection as they see fit.