What's the meaning of overdue payment letter?

When a company collects debts or collects debts from the company, it often sends out a collection letter in advance to inform the other party to repay as soon as possible according to the time specified in the collection letter. Some people may think that the dunning letter will be useless if the other party does not repay the loan, but in fact, the dunning letter has certain legal effect and is not as "useless" as imagined. The legal effect of dunning letter In practice, dunning letter is a dunning tool and a notice used by the payer or individual when the payment is overdue. The documents commonly used by enterprises in collecting accounts receivable have both commercial nature and legal connotation. There are many types and forms of debt collection letters, including toughness, inquiry, reply and warning. But no matter what form of dunning letter, it can produce the following legal effects: 1, dunning letter can effectively interrupt the limitation of action. According to the provisions of the Civil Procedure Law, the limitation of action for arrears is generally two years. If the creditor fails to ask the debt company to pay within two years after the repayment period expires, the court will no longer protect it. That is to say, even if the creditor brings a lawsuit to the court at this time and asks the debtor to repay, once the other party withdraws the defense of limitation of action, the court will dismiss the lawsuit or decide the other party to win the case. However, according to the regulations, the demand letter, as a demand letter, has the legal effect of suspending the limitation of action, which can extend the limitation of action and allow creditors to decide the time of prosecution flexibly. 2. The dunning letter can show that the creditor has fulfilled the notification obligation and given a reasonable time limit. According to the regulations, if the debtor fails to repay the debt within the time limit, the creditor shall generally fulfill the obligation of notification and give it a reasonable period before the debtor can sue for repayment. 3. Debt collection letter is a quick and affordable way to collect debts. The more formal the debt collection letter is, the more creditors pay attention to this matter. For example, a professional debt collection letter issued by a lawyer will make the debt company think that this matter has risen to the legal level and will handle it more cautiously, greatly improving the possibility of payment. Therefore, if the company doesn't want to go through legal procedures when collecting debts, it can first find a professional company law lawyer to write a collection letter, and the debtor may use this as a basis to pay off debts.