Dunning Notice Law and Legal Definition

Dunning notice is a collection letter sent to defaulting debtor demanding payment by the creditor. When the debtor makes delay in payment or arrangement to settle the debt for a longer period, the dunning notices get more and more stronger. Communications progress from gentle reminders to almost threatening letters as accounts become more past due. Regulations in each country differs in the the form that dunning can take. Generally it is unlawful to harass or threaten consumers. A creditor can issue firm reminders and take all allowable collection options. The word has its origin from the 17th century verb dun, meaning to demand payment of a debt.