Debt owed: 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.
Stop payment: This demand letter should be used when a person owing money to a creditor makes payment in the form of a cheque, but then later instructs the bank to stop the cheque. The creditor can use this demand letter to secure payment of the debt, plus bank and mailing fees. This letter advises the debtor of the legal consequences for failing to adhere to this demand letter. It also urges the debtor to resolve the debt with the creditor, if the debtor believes he/she has a good faith dispute.
NSF cheque: This demand letter should be used when a cheque written by a debtor is returned by the debtor's bank due to insufficient funds or the account being closed. This letter outlines the cheque details (number, date and payment amount) and explains why the bank returned the cheque. The debtor is advised to pay the amount of the cheque plus bank and mailing costs, in order to avoid legal proceedings.
Action required: This demand letter should be used when one or more people require a certain action be performed by one or more people. This letter outlines the action to be performed by the receipients of this letter. Documentation may be provided to explain and backup this demand. The recipients of this letter are advised of the potential legal consequences for failing to adhere to this demand letter.
Insurance Claim: This demand letter should be used when an accident victim is trying to reach a settlement with an insurance company. The letter outlines the claim information, including details of the incident such as injuries and expenses. It also asks for a final settlement amount within a specified deadline in forebearance of the claimant's right to sue. It advises the insurer that if they do not reach a settlement, the claimant will pursue their claim in court.
Cheque Writer's Information
(Person that wrote the cheque)
Payee's Information
(Person who was given the cheque)
Cheque Information
Claim Information
Describe to the best of your ability the incident that led to the claim (e.g. On November 21, 2009 I was in an automobile accident while driving...). In your description you should include: where you were and what you were doing at the time of the accident, how the accident happened, accident details such as the make and model of any vehicles involved and a precise street location, why the insured person is responsible for the accident, and any documentation you have to support your argument (such as a police report, medical record, etc.). You may want to consider attaching copies of any documentation available.
Injuries
Describe to the best of your ability the injuries incurred as a result of the accident. (e.g. injuries to my spleen, head and neck, facial lacerations). Be sure to include a description of what your injuries were at the time of the accident and what they are now, your medical diagnosis, the medical treatment you have undergone and any continuing medical treatment you will need, inconveniences you have had because of the injuries, and any documentation to support your assertions.
Expenses
Describe to the best of your ability the expenses incurred as a result of the accident (e.g. hospital bills totaling $1000, rental car fees of $350, missed 5 days of work resulting in a loss of $400 in income, etc.). Common insurance claim related expenses include medical treatment and lost income. You should include both expenses already incurred as a result of the accident, and those that you will incur because of the accident. You may want to consider providing copies of any documentation you have, such as receipts.
Damages
Describe to the best of your ability any other damages incurred as a result of the accident that you have not already described (e.g. damage to car totalling $20,000, pain and suffering, etc.).
Debtor Information
(Person who owes the debt)
Creditor Information
(Person who is to have received the debt)
Debt Information
(e.g.
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*thirteen cases of Adidas footwear supplied to you by us at your request on January 1st, 2004
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*landscaping services provided to you by us at your request between January 1st, 2004 and June 30th, 2004
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*monies due to me pursuant to the terms of our sales contract dated January 1st, 2004 for the sale of my shares of ABC Inc.)
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Settlement Information
(Use this section if you are willing to accept payment terms or a lesser amount to get paid now instead of incurring the cost of litigation.)
(Settlement terms should include the total amount of payment that will be accepted by the creditor and the schedule by which the payment will be made, including the date on which the payment will commence. If the payment is to be made by instalment, the amount of each instalment should be included.
e.g. Without prejudice to my rights for full recovery of the Debt, I am prepared to accept $4000.00 as full and complete settlement of the Debt if the payment is made on or before June 30, 2004.
e.g. Without prejudice to my rights for full recovery of the Debt, I am prepared to accept as full and complete settlement, payment of the Debt in instalments of $400.00 per week until the Debt is fully paid with payments to commence on June 30, 2004.
e.g. Without prejudice to my rights for full recovery of the Debt, I am prepared to accept delivery of 10 personal computers as full and complete settlement of the Debt if delivery is made on or before June 30, 2004.)
Settlement Information