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____________________________________________________________
________ day of ________________, ________
_______________________________________________________
Dear Sir/Madam,
You were to have paid the amount of $_______ USD (the "Debt") to me on June 28, 2022 and this Debt remains outstanding despite my requests for payment. The Debt relates to:__________________________________________________________________________________.
I hereby demand that payment of the full amount of the Debt be paid to me within _______ days from the date of this letter at the following address: ____________________.
Please note that if I have to commence legal proceedings in order to secure repayment of the debt owing, this letter will be tendered in court as evidence of your failure to attempt to resolve this matter. Further, you may be liable for any court costs, attorney fees and damages, including punitive damages.
You might want to contact a lawyer to discuss your legal rights and responsibilities.
Yours sincerely,____________________________________________________
A Demand Letter is also known as a:
A Demand Letter is a written request that individuals send to demand a payment or action or to reach a settlement outside of court (to quickly resolve a legal matter). The goal of an LOD is to resolve the issue without going to court to dispute it.
In general, an LOD will state the purpose for writing the letter, request payment or action by a certain date, and threaten legal action if there is no response. Any relevant documentation that may help prove your claim is also attached.
For instance, to recover unpaid rent, you might include your Lease Agreement to indicate how much the tenant was expected to pay. Similarly, to fix an issue with a contractor, you could include your Service Agreement to demonstrate what work the contractor was expected to perform.
The contents of a Demand Letter differ based on the reason the letter is being written. Here's what is typically included in the most common types of demand letters:
You can ensure that your LOD gets into the recipient's hands by:
Keep in mind, sending your Demand Letter by email or text message is not recommended. This is because emails and text messages do not satisfy the legal requirements of proof of delivery. Using email or text makes it difficult to verify important information, such as the time the message was received, the contents of the message, and more.
After a Demand Letter is sent, you should receive some type of response from the recipient. For instance, the recipient might:
Accepting a settlement typically means accepting some type of concession, like agreeing to receive less than what a debtor initially borrowed. Considering the cost of litigation and the time required to handle an issue in court, settling can sometimes be the best option when attempting to resolve a legal issue.
For example, if a debt hasn't been paid on time (perhaps because the debtor is unable to pay in full or within a reasonable period), the creditor can offer a settlement in their debt collection letter in an attempt to recover a least a portion of the debt owed.
After you send your Demand Letter, the recipient will need time to respond. The timeline for reaching a settlement will vary greatly depending on the circumstance and how the recipient decides to respond. In some instances, settlement is not possible and the parties will need to go to court to resolve the dispute.
To expedite a resolution, you can include settlement terms in your Demand Letter for the recipient to accept or reject without the need for back and forth negotiation.
If your demand has been ignored or the recipient refuses to agree to your terms in the letter, your next course of action would be to file a lawsuit.
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