The Collection Agency Demand Letter is a critical document used in New Zealand's debt recovery process when a creditor has assigned or authorized a collection agency to recover an outstanding debt. This document must strictly comply with New Zealand's legal framework, including the Fair Trading Act 1986, Privacy Act 2020, and Credit Contracts and Consumer Finance Act 2003. The letter serves as formal notice to the debtor, detailing the original creditor, debt amount, payment requirements, and the debtor's rights. It represents a crucial step before potential legal action and must balance firmness with fairness, avoiding any harassment or undue pressure while maintaining professional standards. The document is typically used after initial collection attempts by the original creditor have been unsuccessful, and the debt has been referred to a professional collection agency.

1. Letterhead and Date: Collection agency's official letterhead including business name, address, contact details, and date of the letter

2. Debtor Information: Full name and address of the debtor, any relevant account or reference numbers

3. Debt Details: Clear statement of the original creditor, debt amount, date incurred, and any additional charges or interest

4. Collection Authority: Statement confirming the agency's authority to collect the debt on behalf of the creditor

5. Payment Demand: Clear statement of the total amount due and deadline for payment

6. Payment Instructions: Detailed information about acceptable payment methods and where/how to make payment

7. Consequences of Non-Payment: Legal and factual statement of potential consequences if payment is not received

8. Debtor Rights: Statement of the debtor's legal rights including right to dispute the debt

9. Contact Information: How the debtor can contact the agency to discuss the debt or arrange payment