Document background
The Debt Collection Letter of Demand is a critical document in the Canadian debt recovery process, typically used when informal collection attempts have been unsuccessful. It represents a formal step before pursuing legal action and must be carefully drafted to comply with both federal and provincial regulations. The document should be used when there is a clear, undisputed debt and the creditor has accurate, up-to-date information about the debtor and the amount owed. It includes specific details about the debt, payment terms, and deadline for response, while adhering to legal requirements regarding collection practices. The letter must maintain a professional tone and avoid any threatening language prohibited by collection laws. Timing is crucial, as the letter must be sent within applicable limitation periods and should allow reasonable time for response before further action is taken.
