Free Demand Letter

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Demand Letter

Creditor Details

Creditor Details

Who lent the money?


e.g. John William Smith

e.g. Street, City, State ZIP Code

Your Demand Letter

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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,


Demand Letter Information

Alternate Names:

A Demand Letter is also known as a:

  • Letter of Demand (LOD)
  • Collection Letter
  • Debt Collection Letter
  • Collection Dispute Letter
  • Demand Letter for Payment
  • Demand Letter for Money Owed

What is a Demand Letter?

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.

What is in a Demand Letter?

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:

  • Debt Owed: A letter requesting a debt repayment should outline the reason for the debt, the amount, and the original due date. If the creditor wishes to settle for a lesser sum, the letter should also provide those details (which will often be called the "terms of settlement"), including the amount they would accept to settle and when that payment will be due.
  • Action Required: A letter seeking an action should include a description of the action being requested, such as completing a task or providing a service.
  • Insurance Claim: A letter to an insurance company should provide the claim number, date of the incident, and details of the situation or accident (such as information about a motor vehicle injury and any hospital expenses). The letter should also include the settlement amount and a deadline to respond.
  • NSF Check: A letter requesting payment after a debtor's check is returned (an NSF or non-sufficient funds check) should include information about the check, including the payment amount, name of the bank, and check number. You can also request reimbursement for bank fees and postage costs.
  • Stop Payment: A letter requesting payment after a debtor puts a stop payment on a check should include information about the check, such as the check number, payment amount, date of issue, and name of the bank. The letter can also demand compensation for bank fees and postage costs.

How do I send a Demand Letter?

You can ensure that your LOD gets into the recipient's hands by:

  • Delivering it in person
  • Hiring a lawyer to deliver it on your behalf
  • Having a trusted friend or family member deliver it on your behalf
  • Sending it by registered mail, which offers proof of delivery

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.

What happens after a Demand Letter is sent?

After a Demand Letter is sent, you should receive some type of response from the recipient. For instance, the recipient might:

  • Acknowledge the issue and comply with your request. Often the threat of legal action contained in a Demand Letter may be enough to prompt payment or action from the recipient.
  • Reply with a counteroffer. If you want a quick resolution and the terms are agreeable to you, you can accept the offer. Otherwise, you can refuse or continue to negotiate.
  • Ignore your letter. If you do not receive a response by the due date (i.e. the end date you included in your letter), you can contact the recipient to ensure the letter was received, send a second letter, or commence legal proceedings. If you're uncertain about what to do next, consider speaking with a lawyer.

What is a settlement?

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.

How long after sending a Demand Letter can I expect a settlement?

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 I do not receive a response to my Demand Letter, what should I do?

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.

Related Documents:

  • Cease and Desist Letter: use this document to advise a person or organization that they must stop an action or behavior and refrain from continuing it in the future or face legal consequences
  • Complaint Letter: create this letter to send your complaints about a product or service to a person or a business
  • Promissory Note: draft this document to create an enforceable acknowledgement of debt when one person is lending money to another
  • Loan Agreement: create this agreement to outline the terms of a loan between a borrower and a lender
  • Release: draft this document to confirm that you or someone else will not proceed with a legal action regarding a particular issue
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