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The Late Payment Dispute Letter is a crucial business document used in South African commercial and consumer contexts when payment obligations have not been met according to agreed terms. This document serves as a formal communication tool for creditors to demand payment and establish a clear record of the attempt to resolve the payment dispute before pursuing legal action. The letter must comply with South African legislation, including the National Credit Act 34 of 2005 and the Prescribed Rate of Interest Act 55 of 1975, particularly regarding interest calculations and debt collection procedures. It should be used when informal payment requests have been unsuccessful and before initiating legal proceedings, typically after payment is at least 30 days overdue. The document includes essential details such as the amount owed, payment history, interest calculations, and a reasonable deadline for payment resolution.

1. Sender Details: Full business/individual name, address, and contact information of the party sending the letter

2. Recipient Details: Full business/individual name, address, and contact information of the debtor

3. Date and Reference: Current date and relevant reference numbers (invoice numbers, account numbers, etc.)

4. Subject Line: Clear indication that this is a late payment dispute letter

5. Debt Details: Specific details of the outstanding amount, original due date, and period of delay

6. Payment History: Summary of any partial payments made and remaining balance

7. Interest Calculation: Calculation of interest accrued as per the Prescribed Rate of Interest Act

8. Demand for Payment: Clear statement of the total amount due (including interest) and payment deadline

9. Payment Instructions: Banking details or payment methods accepted