Document background
The Collection Dunning Letter is a crucial document in the debt recovery process under Philippine law, typically used when regular invoices or payment reminders have failed to secure payment. This document represents a more serious escalation in the collection process, serving as a formal demand for payment while complying with local regulations, including the Truth in Lending Act and Consumer Act of the Philippines. The letter includes specific details about the debt, payment requirements, and consequences of non-payment, while maintaining compliance with BSP guidelines on fair collection practices. Collection Dunning Letters are essential tools for businesses and financial institutions in the Philippines to maintain cash flow and manage credit risks, often serving as a prerequisite to legal action if payment is not received.
