Dunning Letter Debt Collection Template for Philippines

The Dunning Letter Debt Collection document is a critical tool in the Philippine debt recovery process, serving as a formal written demand for payment of outstanding obligations. It is typically used when previous informal collection attempts have been unsuccessful and before initiating legal proceedings. The document must comply with Philippine legislation, including the Civil Code, Truth in Lending Act, and Data Privacy Act, while avoiding any harassment or unfair collection practices. The letter should clearly state the debt details, including principal amount, interest, penalties (if applicable), payment history, and deadline for response. It's particularly important in the Philippine context where maintaining professional relationships while pursuing debt collection is crucial, and where specific legal requirements must be met before escalating to court action. The document serves both as a collection tool and as potential evidence in future legal proceedings, making it essential for the content to be accurate, complete, and compliant with local regulations.

1. Letterhead and Date: Official business letterhead of the creditor/collection agency and current date

2. Recipient Details: Debtor's complete name and address

3. Subject Line: Clear indication that this is a collection notice with reference number

4. Debt Details: Specific information about the outstanding debt including original amount, current balance, interest accrued, and dates

5. Legal Basis: Reference to the underlying contract or obligation creating the debt

6. Payment Demand: Clear statement of demand for payment with specific amount

7. Payment Instructions: Detailed information on how and where to make the payment

8. Response Timeline: Specific deadline for response or payment

9. Contact Information: Clear details on how to contact the creditor or collection agency

10. Signature Block: Official signature, name, and title of the authorized representative