Notices Used for Recovering Debts
There are a number of notices that can be served to individuals or companies with overdue debts. It’s important to understand what each one is and how you should respond. Here we outline the notices and their associated penalties. Debt Collection Letters After reminder letters have been sent to you without payment being received, a debt collection letter may follow. Also known as a letter of demand, these will set out the amount owed, what the product or service was and the due date for payment. Late payment interest may be added to the amount owed if the written contract includes a payment of interest clause. The letter may be from an individual, company, their lawyer or debt collection agency. Statement of Claim and Judgement A statement of claim is the beginning of a court case where the plaintiff will outline how much you owe for which goods or services. The plaintiff may also include an amount for interest, filing and service fees and lawyer’s fees. If you ignore a stat...