Document background
A Letter of Collection is a crucial document in Danish debt recovery processes, used when previous attempts to collect payment have been unsuccessful. This document represents a formal step in the debt collection process, typically issued before pursuing legal action. The letter must comply with the Danish Debt Collection Act and related regulations, which set strict requirements for content and format. It should include specific details about the debt, payment terms, and consequences of non-payment. The document is commonly used across various industries where there is a need to recover outstanding payments, and it must balance the creditor's right to collect with consumer protection requirements under Danish law. The timing of sending a Letter of Collection is important, as it often serves as a final warning before more serious collection measures are initiated.
