Document background
The Collection Demand Letter is a critical business document used when formal attempts are needed to recover outstanding debts in Hong Kong. It represents an escalation in the debt collection process and often serves as a prerequisite before initiating legal proceedings. The letter must adhere to Hong Kong's legal framework, including the Contract Ordinance, Money Lenders Ordinance, and Personal Data (Privacy) Ordinance. It typically includes details of the debt, payment history, interest calculations (if applicable), and a clear deadline for payment. The Collection Demand Letter should be written in a firm but professional tone, avoiding any language that could be considered threatening or harassing under Hong Kong law. This document is particularly important as it creates a paper trail of attempted collection and can be used as evidence in court if legal action becomes necessary.
