Document background
The Outstanding Debt Letter is a crucial document in Malaysian debt recovery processes, used when formal attempts are needed to collect unpaid amounts from debtors. It serves as both a formal demand for payment and a legal record of collection efforts, complying with Malaysian legislation including the Debt Collectors Act 2019, Contracts Act 1950, and Limitation Act 1953. The letter should be issued before the statutory limitation period expires (6 years from the date the debt became due) and must contain specific details about the debt, including amount, origin, payment history, and clear payment instructions. This document is often a prerequisite before initiating legal proceedings and demonstrates the creditor's attempt to resolve the matter amicably while preserving their legal rights.
