What is the Legal Notice for Recovery of Money?
Whenever you have to recover money from the second party owing your amount and have signed the agreement to return on a fixed date, you can send a legal notice for recovery of money as legal information before any legal action. To accomplish such action, you can choose a legal firm with broad experience so that, you can inform the person of the repayment’s details in terms of a legal warning. However, there are some restrictions and terms and conditions which means you must adhere to the guidelines of the Reserve Bank of India, especially as a fintech company. Legal firms, especially a legal tech company is well-versed in drafting legal notices with precise sentences and interpretations.
Why is Legal Notice for Recovery of Money Required?
Considering the recovery and ethical aspects of the lending services or in other cases, when someone owes your money and commits to return it, but is still late, you can choose the legal firm that can help you send the legal notice immediately before any legal action. At that time, the borrower gets the information and most of them pay the amount back with some negotiation or a settlement amount. Therefore, the legal notice for recovery of money is required to get the invested amount back without any judicial actions.
Essential Features of the Legal Notice for Recovery of Money
The legal notice must-have essential features, especially while drafting as a legal intimation for recovery and these are:
- The notice must be drafted with neat and explicit information including all the details of both the parties and subject matter. The amount, date, and final deadline must be clear.
- The address and contact information of the beneficiaries must be mentioned in the notice as per the law.
- The date of issue is essential and it must be mentioned in the legal notice so that you can claim or proceed with further action, especially in the case when the borrower doesn’t pay the amount.
- Name details of the client should be mentioned on the legal notice for recovery of money especially when you are sending the notice as a third party i.e., from the client to their customers.
- Subject matter must be revealed explicitly in the legal notice with all the details, like amount, tenure, and reasons for the fast payment.
- The signature of the advocate and sender with the appropriate date must be there.
Documents Required for the Legal Notice for Recovery of Money
These documents are invariably required for legal notice for recovery of money:
- Affidavit for the proof of money landed to the party
- Employment agreement in the case where the money is to be recovered from the employee. The documents must state the amount which is to be discovered from the employee
- Proof of the money borrowed by the customer
Procedure for the Documents Required for Legal Notice
As per the legal process, the notice must be drafted with all the details and you must have all the documents required for the legal notice for recovery of money. It must be dually signed by the advocated and the first parry. After drafting the notice precisely, it must be proofread and then it must be sent to the customer. If the borrower is not paying the amount within the tenure, the first party can move to the court for legal action and judicial recovery methods.
Conclusion
Legal notice for recovery of money is the process which is attempted by the first party with the help of a legal firm or advocate with the proper drafting including all the information i.e., for the first party, borrower, amount and agreements whatever were made. Therefore, getting the help of an advocate is the best component to prepare and send notice to the person who is getting delayed in the repayment of the borrowed amount. If you are also willing to send the legal notice for recovery of money, choose the firm to accomplish the process easily.