Debt Collection Letter Template for Pakistan

The Debt Collection Letter is a crucial document in Pakistan's debt recovery process, used when formal attempts to recover outstanding payments are necessary. This document is typically employed after informal collection attempts have failed and before initiating legal proceedings in Pakistani courts. It must comply with specific requirements under Pakistani law, including the Contract Act 1872, Civil Procedure Code 1908, and Financial Institutions (Recovery of Finances) Ordinance 2001. The letter should clearly state the debt amount, include all relevant details of the original transaction, specify interest calculations according to Pakistani regulations, and provide a reasonable payment deadline. It serves as both a formal demand for payment and potential evidence in future legal proceedings, making it essential for the document to be properly drafted and delivered according to Pakistani legal requirements.

1. Sender Details: Complete contact information of the creditor or collection agency, including business name, address, and contact details

2. Recipient Details: Full name and address of the debtor, including any reference numbers

3. Date: Current date of the letter

4. Subject Line: Clear indication that this is a formal debt collection notice

5. Debt Details: Specific information about the debt including original amount, current amount with interest, date incurred, and account references

6. Legal Basis: Statement establishing the legal right to collect the debt and reference to relevant agreements or transactions

7. Payment Demand: Clear statement of the amount demanded and deadline for payment

8. Payment Instructions: Detailed information on how and where to make the payment

9. Legal Consequences: Statement of potential legal actions if payment is not received by the deadline

10. Closing: Professional closing with contact information for queries and signature block