Document background
The Demand Letter to Collection Agency is a crucial document used in Swiss debt collection proceedings when a creditor decides to engage professional collection services after unsuccessful direct collection attempts. This document, governed by Swiss federal and cantonal laws, particularly the Federal Act on Debt Enforcement and Bankruptcy (DEBA), serves as the formal instruction and authorization for a collection agency to pursue debt recovery. It typically becomes necessary when internal collection efforts have been exhausted or when specialized expertise is required for debt recovery. The letter must contain comprehensive information about the debt, the debtor, previous collection attempts, and specific instructions for the collection agency, while ensuring compliance with Swiss data protection laws and debt collection regulations.
