Why do you need a demand letter?

Debt Owed
Action Required
Insurance Claim

This demand letter should be used when one or more creditors are seeking to collect a debt which is past due from one or more debtors. This letter outlines the amount of the debt, and also provides a description of the transaction creating the debt. Immediate payment of the debt can be demanded, or a settlement may be proposed to resolve the matter without involving litigation. The debtor is advised of the potential legal consequences for failing to adhere to this demand letter.

What Is a Demand Letter?

A Demand Letter, also known as a letter of demand (LOD) or collection letter, is written to:

  • Notify the recipient of their obligation to repay a debt or fulfill a contract
  • Request payment or action from the recipient by a certain date
  • Advise the recipient of potential legal consequences for failing to respond
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Person wanting details

When Do I Use a Demand Letter?

You can use a Demand Letter to maintain goodwill and to prevent the need for further legal action.

Situations that may call for a Demand Letter include:

  • Debt owed: a creditor seeking to collect a debt that's past due
    from a debtor
  • Action required: an individual requesting an action from an individual or company
  • Insurance claim: an accident victim trying to settle a claim with
    an insurance company

What Information Is Required in a Demand Letter?

Information needed in a Demand Letter includes:

  • Sender and recipient information
  • Why you're sending the letter: debt owed, action
    required, or insurance claim
  • Specific details, such as the reason for the loan or
    a description of the accident
  • Amount or action being requested
  • Deadline for the recipient to respond
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Person delivering a Demand Letter

How Should I Deliver My Letter of Demand?

The appropriate ways to deliver an LOD are:

  • In person
  • By proxy, e.g. a lawyer, friend, or family member
  • By certified mail

What Should I Expect After I Send My Letter?

You can expect one of several responses to your letter of demand.

The recipient may:

  • Accept your demands and pay the debt or complete the action
  • Make a counter-offer, in which case you can accept the offer or negotiate further
  • Ignore your letter, in which case you should discuss your options with a lawyer or take legal action
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What Other Documents Do You Need?

Consider one of our other forms:

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