What is a Demand letter? A letter of demand is sent to a person or organization who owes you money (a debtor) following your sale to them of goods or services. The letter advises the debtor of the amount outstanding and threatens court action to recover the debt if it is not paid within a certain time.

Why send a Demand Letter? A letter of demand serves two primary purposes. First, it warns the debtor of your intention to commence legal proceedings unless payment is made and gives the debtor one more opportunity to pay. Secondly, the letter is a document which may be tendered in evidence during court proceedings as written proof of your claim of the debt owed and your attempt to settle the matter. Other reasons include:

• It can be legally required prior to litigation.
• It best preserves your remedies for charging interest. It may qualify you for extra. remedies such as statutory penalties and attorney fees.

 Copies of any relevant documents such as contracts, letters of agreement, invoices, etc, should be listed and attached to the letter of demand to assist the debtor to identify the transaction and his liability to pay. It is advisable to send the letter of demand by registered post or fax to confirm receipt. You’d be surprised how often a demand letter from a lawyer can work without you having to go to court.

How do you Respond to a Demand Letter?

• Do not ignore a letter of demand from a creditor or debt collection agency for monies owing.
• Carefully check the letter for any matters that are unclear.
• Seek legal advice from one of our attorneys if the claim is disputed.
• If you do not dispute the claim, contact one of our attorneys to contact the creditor and attempt to negotiate settlement of the matter.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have questions about Writing or Responding to a Demand Letter, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, Trademarks, Copyrights, Estate Planning, Legal Counsel, Wills, Trusts, Agreements & Leases, Corporate & Company Changes.