The Debt Collection Letter of Demand is a crucial document in the Australian debt recovery process, serving as a formal and final attempt to recover outstanding payments before initiating legal proceedings. This document must comply with various Australian regulations, including the Australian Consumer Law, ASIC/ACCC Debt Collection Guidelines, and state-specific fair trading legislation. It is typically used when previous informal attempts to collect payment have been unsuccessful, and the creditor wishes to escalate the matter while maintaining professional standards and legal compliance. The letter must balance firmness with fairness, avoid any harassment or undue pressure, and include specific information about the debt, payment methods, and consequences of non-payment. It's essential in establishing a clear record of attempted collection and meeting pre-litigation requirements under Australian law.

1. Sender Details: Full legal name, address, and contact information of the creditor or debt collection agency

2. Date: Current date of the letter

3. Recipient Details: Full name and address of the debtor

4. Reference Number: Unique identifier for the debt/account

5. Debt Details: Clear itemization of the debt amount, including principal, interest, and any additional charges

6. Payment Demand: Clear statement of the total amount demanded and payment deadline

7. Payment Instructions: Detailed information about acceptable payment methods and account details

8. Legal Warning: Statement about potential legal action if payment is not received by the deadline

9. Required Disclaimers: Mandatory statements required by Australian Consumer Law and ACCC/ASIC guidelines