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The Notice of Late Payment Letter is a crucial business document used when payment obligations have not been met according to originally agreed terms. This document serves as a formal communication tool in Canadian business practices, requiring careful attention to both federal and provincial regulations governing debt collection, interest charges, and communication requirements. The letter typically follows internal collection procedures and precedes more serious legal action. When drafting a Notice of Late Payment Letter, businesses must ensure compliance with provincial consumer protection laws and federal legislation such as the Interest Act and PIPEDA. The document should include specific details about the debt, payment instructions, and any applicable interest or late fees, while maintaining a professional tone that encourages payment while preserving business relationships.
