Document background
The Collection Demand Letter is a critical business document used when formal attempts to collect an outstanding debt are necessary. It serves as a final written notice before potential legal action and is often required as evidence in legal proceedings. In the Canadian legal framework, this document must comply with both federal and provincial regulations governing debt collection practices, including proper identification of the debt, accurate calculation of amounts owing, and appropriate communication of payment terms. The Collection Demand Letter should be used after initial collection attempts have been unsuccessful and before initiating legal proceedings, typically including details of the original debt, current amount owing including any interest or additional charges, payment deadline, and consequences of non-payment.
