Free Demand Letter Template

A Demand Letter is a legal form that serves as a final notice for resolving a matter, typically a debt, before the sender takes legal action against the recipient. It outlines the grounds for the debt and debt recovery strategies. 

Sending a Demand Letter highlights the seriousness of the situation by imposing a strict deadline and notifying the recipient of the sender's intent to sue.

Other names for a Demand Letter include:

• Debt collection letter

• Letter of demand (LOD)

• Payment demand letter

• Final Demand For Payment

When to Use a Demand Letter

A Demand Letter is a tool typically used to pursue payment when someone owes you money. However, it is essential to consider each situation's unique circumstances and approach them accordingly. 

 A legal Demand Letter will typically be recommended when:

• payment has not been received within the agreed-upon time frame.

• you have contacted the company about the situation, and they have indicated they will remedy it but haven't done so in a reasonable amount of time.

• you have been charged for a service or product that was not provided or delivered.

• a company has refused to credit your account, and you believe credit is warranted.

To be legally valid, a Demand Letter form must be carefully drafted, as it will make it easier in the event that you need to go to court to defend your case.

Complete these steps to draft an effective Demand Letter:

1. Begin with an introduction. Clearly state the reason for writing the letter, whether it's to demand payment, action, or an insurance claim.

2. Present the issue in detail. Describe the situation providing as much information as possible, such as the amount owed, a description of the action required, damages, etc.

3. Attach supporting evidence. Attach relevant documentation that supports your demand, such as contracts, receipts, or photographs.

4. State the terms of your settlement (optional). For example, if you're collecting a debt, you may accept a settlement for less than the full amount or settle for installment payments.

5. Provide contact information. Include the names and contact information of both the sender and recipient in the letter.

Remember to keep the tone polite and professional, as the letter may be used in legal proceedings.

Use our Demand Letter template to avoid making any critical mistakes.

Demand Letters for payment are one of the most common types of demand forms. It is typically the last notice sent to a debtor regarding an outstanding payment, asking them to make amends by paying the due balance.

Examine the following example to create yours:

From: [Your Name]

Address: [Your Address]

To: [Recipient’s Name]

Address:[Recipient’s Address]

[Date]

Dear [Name],

Through this letter, I hereby demand you to pay the quantity of $[Debt amount] for the Debts related to:

[Cause of debt] before the [Due Date].

If you ignore this notice, I inform you that we will initiate all the legal procedures in accordance with state and

Federal Laws so that the payment of the amount owed is carried out.

Please, use this letter as official demand notice that can be used as proof in court in case you fail to pay. If this

happens, you will also be responsible for any court costs and fees.

I hope we can solve this problem in the simplest possible way for both of us.

Sincerely,

[Signature]

[Your name]

While Demand Letters are generally informal and can be delivered personally or by mail, sending one via email or text may not fulfill the legal requirements for proof of delivery. 

These are the most legally secure methods to deliver a Demand Letter:

• Hiring a lawyer to deliver it on your behalf.

• Sending it by registered mail.

• Delivering it in person and obtaining an Affidavit of Service.

Remember that sending a Demand Letter before filing a legal claim is mandatory in some states, such as Florida and Texas.

Why Send a Demand Letter

There are some benefits that come from sending a Demand Letter before filing a lawsuit, such as:

• Indicating your good faith in trying to resolve the issue.

• Demonstrating you are serious about solving the issue.

• Saving you time and money by facilitating a speedy resolution.

Before drafting your own Demand Letter, it's advisable to examine a sample as a reference.

Take a look at this Demand Letter example below before starting your own:

In addition to Demand Letters, other related documents may assist you with financial matters:

• Loan Agreement 

• Promissory Note

• Cease and Desist Letter 

• Informal Loan Agreement (IOU)