Notices are the legal concept explaining an obligation or requirement that a party be aware of legal process affecting their rights, obligations or duties. There are several types of notice: public notice, actual notice, constructive notice, and implied notice. Recovery of money is a formal intimation between two people warning the other before legal action is initiated to get their due payment. Infact you can also send a notice for recovery of money from a friend, in case he/she owes you a lot. The first step in money recovery cases is sending a notice to the concerned person to pay back the debt without taking the matter to the court.
Debt is nothing but an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. This notice for recovery of debt is very important as it serves two purposes- firstly, it informs the debtor of the defaulted payment and warns him about eventual legal court actions. It is always sent by email, letters, post or fax (in order the receipt to be confirmed in writing by the second party), and thus secondly, the letter can be used as an evidence that the debtor has been contacted and warned of the bad debt situation and the following procedures. This notice demands the subject of debt to settle the outstanding bill, which is in default, within the certain time specified, and informs him about the total debt amount.
Key points to be mentioned in the debt recovery notice:
1.Specify the date on which debt was given also mention the reason for which debt was given.
2.Mention the due date on which debt was supposed to be repaid
3.Mention the form/ manner in which debt was to be paid back to you (At one go or in installments)
4.State the interest charges that was to be paid along with the debt due as well as new interest rate to be charged for the delay of payment.
5.Specify the repercussions of not paying the debt on time (Also, provide another due date to pay back the debt)
Passport photo of all parties.
PAN card of all parties.
Aadhar card of all parties.
Utility bill of Electricity or Telephone.
Valid Address Proof of all the parties.
Valid Driving Licence of all the parties.
Terms and Conditions
Terms and Conditions between the parties.
Other documents will be intimated through e-mail.
A debtor is an individual or organization that owes the money.
Creditor' refers to the party that has delivered a product, service or loan, and is owed money by one or more debtors.
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase.
A Notice is a formal written communication between the parties. Whereby through this notice, the sender notifies the addressee about his intentions with respect to any legal obligation or right between both the parties.
A debt recovery notice serves as a method for collection of bad debts and past-due payments.