Document background
The Debt Recovery Letter of Demand is a critical business document used when formal attempts to collect an outstanding debt are necessary. It serves as an important step in the debt recovery process, often preceding legal action, and must comply with both federal and provincial Canadian regulations regarding debt collection practices. This document is typically used after informal collection attempts have been unsuccessful and before initiating legal proceedings. The letter must include specific information such as the debt amount, payment history, deadline for response, and potential consequences of non-payment. In the Canadian jurisdiction, careful attention must be paid to provincial limitation periods, interest rate regulations, and debt collection practices legislation. The document's tone and content must balance firmness with professionalism while avoiding language that could violate debt collection regulations.
