Q. Is the demand letter just a form of threat intended to compel the other side to pay up?

A. No, the demand letter is designed to reach a civilized solution to the financial predicament that one party has caused to the other. By pointing out that further legal action may be taken if no resolution is found, the demand letter is intended to encourage settlement rather than going to trial.

Q. Should I keep a copy of the letter for my own records?

A. Yes, you should retain a copy of the letter in case further legal action is required and the recipient of the letter attempts to deny having received it.

Q. If I do not receive a response to my demand letter, what should I do?

A. If your demand has been ignored, your next course of action would be to file a lawsuit.

Q. What method of delivery should I use?

A. To ensure that the demand letter is received, you should use certified mail where possible.

Q. Do I need to provide documentation of the debt owed with the demand letter?

A. No, but providing copies of any documents you have evidencing the debt that is owed will increase the likelihood that the debtor will pay back the debt rather than letting the issue go to court.

Q. Can I use the Debt Owed Demand Letter even if the debt isn't owed entirely to me?

A. Yes, you can use the Debt Owed Demand Letter, but only demand payment of the portion of the debt that is owed to you.

Q. Why would I even consider accepting a lesser amount than what I am owed?

A. In cases where you know that the debtor will not be able to repay the entire debt in a reasonable period of time, you can offer to accept less than what you are owed to ensure that you actually recover at least part of the debt. This option is most often exercised when the creditor knows that even if they win at trial, the debtor will likely be unable to repay all the debt. You may also accept a lesser amount because you want to avoid the uncertainty of trial, you need your money right away, or your legal expenses will be high and you may get little of these costs back even if you are successful at trial.

Q. What does "NSF" mean?

A. NSF stands for not sufficient funds, and refers to a Check that has been drawn on an account with insufficient funds to meet the value of the Check, or an account which has since been closed.

Q. If my demand is ignored, and I file suit against the writer of the Check, can I seek other damages?

A. Yes, in most states the Payee of a Check can receive up to three times the amount of the Check in damages, but damages are frequently limited to a maximum of $1,500.

Q. Am I required to send a demand letter to the writer of the Check before filing suit against them?

A. No, you do not have to contact the writer of the Check. However, sending a demand letter is often the quickest and easiest way to collect money owed because of a NSF Check.

Q. When can I use the Stop Payment Demand Letter?

A. Use this form of demand letter when a Check that was written to you was stopped by the writer of the Check, resulting in you not being paid what you were owed.

Q. How much time should I give the writer of the Check to make payment?

A. Generally, there is no required time frame, but you should give the writer of the Check sufficient time to examine their records and determine if they have a good faith dispute over the payment that was stopped. Three to five days is usually a sufficient amount of time.