Role of a Collection Letter in Dubai

A debt collection letter, also known as a demand letter is considered as an official notification. It is drafted by a lender or debt collections agency and sent to a debtor. It is drafted with the purpose to remind them of their delinquent payments.

Debt collection letters can be issued to both commercial and consumer debtors. Debt recovery Dubai agencies are well-known to provide top-notch services in this area.

  • What is the Purpose to Draft a Collection Letter?

Below are the reasons to draft a debt collection letter. The legal experts provide you with various services including this one.

  • Inform Debtors of Outstanding Debt

The primary purpose of the debt collection letter is to inform a debtor their payment is due formally. It highlights when the payment was due and the expired limit of the due date. Moreover, it urges the debtor on the behalf of the creditor to clear the debt before legal action is taken.

  • Initiate Payment Negotiations

A demand letter is also sent as a friendly way to direct the debtor on how they can initiate a formal negotiation process. It tells them how they can work with the creditor to craft a new payment plan. Debt recovery Dubai agencies can make you propose a plan that is rational to both parties.

  • Initiate the legal process

No legal action or harsh debt recovery techniques can be utilized before a debtor receives the collection letter. This emphasizes that a demand letter is sent to serve as proof that the defaulter was indeed contacted. Moreover, the debtor was offered a notice and informed of the necessary payment clearance procedures.


Hence, it is a very important step to draft a debt collection letter to extract your unpaid money. The debt recovery Dubai agencies can help you draft an accurate and precise collection letter to pursue the unpaid amounts. Their services are available in Sharjah, Fujairah, Ajman, Abu Dhabi, and other states of the UAE as well.