What is a Letter of Demand?
A Letter of Demand is a formal request for payment of an outstanding debt. Use this Letter of Demand template after a person or business has failed to reply to your previous requests for payment. The letter clearly states the amount that is owed, the date it was due and what you will do if you do not receive payment within a set timeframe.
Why should I use this Letter of Demand template?
There are a few good reasons why you should try sending a Letter of Demand before commencing legal action:
★ You might be able to recover your debts for free before you spend money on a lawyer or debt collector
★ It gives people another opportunity to pay you
★ The warning can encourage debtors to pay their debts because they see you are serious
★ It provides written proof that you have tried to resolve the dispute fairly and have given them a chance to respond
How do I send a Letter of Demand?
We recommend you send the letter via registered post so you can get proof of delivery. Make sure you give the other party a reasonable amount of time to respond before you take further action!