» Demand Letter Templates | ALL TYPES with Samples

Demand Letter Templates | ALL TYPES with Samples

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A demand letter for payment is a request for money owed that is commonly the last notice to the debtor. The party owed should include language that motivates the debtor to make a payment. Incentives, such as a discount if the debtor decides to pay or threatening to send the debt to collections occasionally can help to influence resolving the matter.

Small Claims Limits ($) – If the amount owed is less than the State minimum (usually $5,000 to $10,000) you may be able to go through Small Claims Court to resolve the matter. This allows the creditor to place a lien or levy on assets of the individual in order to force payment.

Table of Contents

Demand Letters: By Type (22)

What is a Demand Letter?

A demand letter is an official notice requesting money, possession of assets, or action on a legal matter. It is most commonly used when requesting money for a past due amount. A demand letter is usually the last attempt to find a solution with another party before legal action is filed.

Tips for Writing

  • Avoid inappropriate language and remains professional;
  • Provide complete, truthful and accurate with details of the issue;
  • Provide the appropriate time frame for resolution;
  • Provide financial amount the appropriate party needs to furnish;
  • Attach appropriate evidential documents; and
  • It does not imply extortion.

Eviction

An eviction notice is a demand for payment for late rent. This notice is defined by each State giving the tenant a specified number (#) of days to repay the rent owed. If the tenant does not pay within the State required time period, the tenant will be required to vacate the premises.

How to Send a Demand Letter

An effective Demand Letter will require careful thought and consideration to ensure it is clear concise and accurate. The Demand Letter should include all facts and legal contentions.

Step 1 – Deciding What to Ask

Keeping in mind State laws, it’s important to keep the amount below the Small Claims maximum. The creditor must also describe, in the demand, the amounts that are owed by finding invoices or agreements that prove the debtor actually owes the money. Due to Fair Debt Practice laws, the creditor may only be able to request payment for documentation on file.

Step 2 – Calculate the Offense

Gather all pertinent documents to ensure you have proof of money owed. This could encompass receipts, invoices, law enforcement records, evidence of work, copies of returned checks, etc. Documentation will need to be provided to ensure the previously agreed-upon terms were not met. All damages incurred should be itemized and detailed with an amount for each line and a final total amount at the end.

Step 3 – Give a Time-Frame to Fix the Issue

The Demand Letter should provide a clearly written deadline (traditionally 30 days to respond) as to when the issue should be addressed by. Upon completion of the letter, the Demand Letter should be sent via registered mail and also sent electronically, if possible. This will ensure the individual understands the issue is a high priority and reduces the risk that the party involved does not receive the letter. Providing a strong alternative (avoid small claims court due to a lawsuit) if the issue does not get rectified is also an option, to help assist in immediate resolution.

Step 4 – File a Lawsuit (if the breach isn’t satisfied)

Small Claims Court (less than State Required Amount) – If the receiving party has not responded in a satisfactory manner then a lawsuit may be filed. This is done to get a judgment against the receiving party which could lead a settlement. The receiving party may also be responsible for all attorney’s fees incurred.

County Circuit Court (more than $10,000)

Step 5 – Collect and Receive Payment

If in agreement, the payor can provide payment immediately. However if the issue involves Small Claims court, this could result in a Settlement which will entail additional steps.

Money Owed vs Breach of Contract

Money-Owed Demand Letter – Strictly for debts or outstanding balances. Should detail the amount due, itemizing any penalties or interest, along with any acceptable payment plans.

Breach of Contract Demand Letter – Strictly for contract violations. Should outline how the other party may be in compliance or else damages may incur.

How Long do Settlements Take?

The time a settlement takes to be fulfilled can vary. On average the traditional timeframe stands around two (2) to six (6) weeks for the parties to come to an agreement. This is due to the fact that there are steps required once that decision has been made which include, acquiring all required signatures, having checks processed and provide the checks to the appropriate parties.

Small Claims Amounts ($)

Below are the maximum allowable amounts in each State’s small claims court.

Samples (3)

Below are three (3) samples of demand letters:

Sample 1 – Demand for Payment

John Smith
Quick Clean, Inc.
22 Johnson Rd.
Clementon, NJ 08021
(555) 555-5555

Sara Johnson
123 Fake Ave.
Ossining, NY 10562

May 15, 2019

Dear Sara Johnson,

This letter serves as a formal demand for payment of your outstanding balance with Quick Clean, Inc. in the amount of $1,250.

On April 5, 2019, you received cleaning services at 123 Fake Ave. Payment for the services was due on April 15, 2019. As of the writing of this letter, your outstanding balance is 30 days late. A copy of the original invoice detailing the balance is attached to this document.

Unless you contact us immediately to discuss how your outstanding balance will be paid, we will be forced to pursue legal action to recover the debt which may leave you liable to pay attorney’s fees, filing costs, and your credit history may be affected. Please note this letter may be presented in court as evidence of your failure to pay.

Prompt attention to this matter would be appreciated.

Sincerely,

John Smith
Account Manager
Quick Clean, Inc.

Sample 2 – Breach of Contract

Sandy Donovan
Kruger Industrial Smoothing, LLC
55 Franklin Rd.
Avon, CT 06001

VIA CERTIFIED MAIL

Mr. Ashton Stewart
2299 Main St.
Bloomfield, CT 06002

January 6, 2019

Dear Mr. Stewart,

Pursuant to the contract titled “Granite Restoration Agreement” dated November 14, 2018 (the “Agreement”), Kruger Industrial Smoothing, LLC has fulfilled its contractual obligations by restoring your granite countertop. Section 7 of the Agreement states that you were to provide payment in full for the services rendered by December 1st, 2019. To date, you have yet to make a payment and are therefore in breach of the Agreement.

According to our records, your initial balance was $224. A late fee of $25 has been added to your balance resulting in a total payable charge of $249.

We request that you contact us immediately to arrange for the settlement of this matter. If you fail to furnish the payment by January 10, 2019, please take notice that we are prepared to seek any and all legal remedies necessary to recover the debt including, but not limited to, initiating a formal lawsuit against you for the mentioned claims.

Sincerely,

Sandy Donovan
Kruger Industrial Smoothing, LLC

Sample 3 – From an Attorney

Law Offices of
McMaster & Cranston, LLC
234 Silver Lake Rd.
Adamsville, RI 02801

February 7, 2019

Mrs. Allison Hanover
Vandelay Window Installation, Inc.
65 Park St.
Barrington, RI 02806

RE: Compensation for improper installation of waterproof flashing

Dear Mrs. Hanover,

This letter has been sent on behalf of our client, Mr. Terry Calloway, to inform you of a payment owed to Mr. Calloway for the following reason: On October 14th, 2018, our client hired your company, Vandelay Window Installation, Inc., to install a new awning window above his kitchen sink. A representative of your company, Mr. Donald Price, arrived at our client’s home on October 21st, 2019 and completed the installation. However, Mr. Price failed to properly adhere the waterproof flashing to the window sill which resulted in water damage to the drywall and surrounding area.

Despite several requests, your company has yet to make an attempt at repairing the damage caused by Mr. Price’s negligence. Mr. Calloway was forced to hire another company to repair the damage resulting in a $1,445 charge. Receipts for the repairs in question are attached to this letter.

We at McMaster & Cranston hereby request that you compensate Mr. Calloway by refunding him the full amount of $1,445. If payment is not made within 5 business days, we will take immediate legal action to resolve this matter and you may be required to pay attorney’s fees.

Yours Truly,

Thomas McMaster
Attorney
Law Offices of McMaster & Cranston, LLC

How to Write

Download: Adobe PDF, Microsoft Word (.docx) or Open Document Text (.odt).

Step 1 – Use The Links On This Page To Access This Demand Letter Template

This demand letter is available for use as a “PDF’ file, a “Word” document or an Open Document Type (“ODT”). Notice the buttons underneath the image will bear these labels so that you may access the file type of choice. If preferred, you may also review then choose from the full names of the file types acting as links above this statement to access the same document.

Step 2 – Begin This Correspondence With A Report On Its Return Address

Once you have downloaded the demand letter, open it, then locate the blank lines underneath the word “From.” Use this area to report exactly where you would expect the Recipient’s response (if any) to be mailed. This area should present the name of an individual who will handle the Demand Recipient’s reply, the name of the Business Entity (if applicable) sending this, and the mailing address (building, street, city, state, zip code). 

 

Step 3 – Deliver Preliminary Information

The calendar date when this letter is drafted and completed should be clearly displayed after the word “Date” on the left-hand side of the page. 

Step 4 – Address The Demand Recipient Directly

The full name of the Demand Recipient will be used in the greeting of this letter. Produce the legal name of this party on the line attached to the word “Dear.”If it is a Business Entity, then many would consider it wise to look up the name of the Owner, Officer, or Operations Manager who can effect the remedy and address this individual directly on this line.

 

Step 5 – Verify Your Identity As That Of The Sender

The first blank line in the body of this letter expects your name produced to its contents to supplement the opening statement’s language. This requirement is best satisfied by producing your full legal name.

 

Step 6 – Plainly State Your Demand

Locate the phrase “…As My LAST NOTICE For” then give specific direction to the Demand Recipient of the actions he or she must engage in (or cease) to comply with this letter and remedy the concerned wrongdoing or violation. If more room is needed for this task, then use your editing program to insert additional space or cite an attachment with the remaining instructions and background information.     

 

Step 7 – Impose A Deadline For Compliance

Naturally, you will wish the Demand Recipient to respond as quickly as possible with the remedy you defined above. For this effect, you must inform him or her of this expectation by filling using the two blank lines after the words “…Demand Letter By” with the calendar month, day, then year when you will take the next step if no response is made.

 

Step 8 – Execute Your Signature As Proof Of Intent

You must verify your identity as the Sender and should show that you intend to impose the consequences of a nonresponse now that you have listed the filing date of this demand, provided instruction for a remedy, and declared a deadline. This action can only be achieved by signing your name on the line beneath the closing phrase “Sincerely.”

 



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