Document background
The Collection Agency Demand Letter is a crucial document in Indonesian debt recovery processes, used when formal collection efforts are initiated through a licensed collection agency. It represents an escalation from direct creditor collection attempts and must strictly comply with OJK regulations, the Indonesian Civil Code, and consumer protection laws. The document serves as an official notification to debtors, containing detailed information about the outstanding debt, payment requirements, and consequences of non-payment. It must be drafted carefully to maintain professional standards while avoiding any practices prohibited under Indonesian law, such as harassment or intimidation. The letter typically follows specific attempts at debt collection by the original creditor and precedes potential legal action, serving as a formal record of collection efforts.
