Document background
The Final Collection Letter is a crucial document in the Pakistani debt recovery process, typically issued after multiple unsuccessful attempts to collect a debt through regular channels. It represents the final step before formal legal proceedings are initiated under Pakistani law, including the Contract Act 1872 and Financial Institutions (Recovery of Finances) Ordinance 2001. This document must be carefully drafted to include all legally required elements such as precise debt details, payment history, deadline for payment, and consequences of non-payment. It serves both as a final opportunity for the debtor to settle the outstanding amount and as evidence in potential future legal proceedings. The letter must be compliant with both conventional and Islamic banking principles where applicable, and should include references to all relevant account information, previous communications, and specific terms of the original agreement.
