This notice is sent in case the borrower/customer has failed to pay the due installments in return of goods/service/money given to him/her despite several intimations made.
It is for non- payment of installments is necessary to make the borrower realize his obligations. Failing to do so can lead to legal actions being taken against him/her.
The notice is not legally enforceable. However, it can serve as a record that the lender was previously intimated. Note that the notice be signed by the person sending the notice.
You may use it if you have lent money/goods/service to a person, the payment of which is agreed upon to be done through installments at the time of lending. In case the installment is still pending,
you can use this notice to bring to the attention of the concerned person that non payment will lead to legal actions being taken against him/her.