In practice, the dunning letter is a dunning tool, and it is a notice used by the payer or individual when the payment is overdue. Documents commonly used by enterprises in accounts receivable collection have both commercial nature and legal connotation. There are many kinds and forms of reminders, such as tough ones, inquiries, replies and warnings. However, no matter what form of reminder letter, it will have the following legal effects:
1. Reminder letter can effectively interrupt the limitation of action.
2. The reminder letter can show that the creditor has fulfilled the obligation to inform and given a reasonable time limit.
3. Dunning letter is a quick and affordable way to collect arrears.
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