Document background
The Debt Collection Letter of Demand is a crucial document in Hong Kong's debt recovery process, typically used when informal attempts to collect payment have been unsuccessful. It represents a critical step before initiating legal proceedings and must be carefully drafted to ensure compliance with Hong Kong's legal framework, including the Limitation Ordinance and Contract Ordinance. The letter should clearly state the debt's origin, current amount including any interest or charges, and provide a reasonable deadline for payment. It serves multiple purposes: formally documenting the demand for payment, providing the debtor with a final opportunity to settle before legal action, and creating an evidence trail for potential court proceedings. The document must strike a balance between firmness and professionalism while avoiding any language that could violate Hong Kong's regulations regarding debt collection practices.
