Document background
The Letter of Demand Draft is a critical document in Irish business and legal practice, used when formal payment collection becomes necessary. This document typically follows unsuccessful informal attempts to collect payment and precedes potential legal action. When drafting a Letter of Demand Draft, organizations must ensure compliance with Irish debt collection laws, including the Statute of Limitations Act 1957 and Consumer Protection Act 2007. The letter should clearly state the debt amount, payment deadline, and consequences of non-payment. It's essential to maintain a professional tone while firmly establishing the creditor's legal position and intent to pursue further action if necessary. This document is particularly important as it often serves as the final formal communication before initiating legal proceedings.
