Document background
The Collection Letter is a crucial document in the UAE's business environment, used when formal payment collection is required from debtors who have failed to meet their payment obligations. This document must strictly adhere to UAE federal and emirate-level regulations, including the UAE Civil Code, Commercial Transactions Law, and Central Bank guidelines. The Collection Letter typically includes detailed information about the outstanding amount, payment history, due dates, and clear payment instructions. It serves as an important step in the debt recovery process and may be used as evidence in legal proceedings if payment remains outstanding. The document must maintain a professional tone while clearly stating the consequences of non-payment, as aggressive or threatening language is prohibited under UAE law.
