A demand letter is a document sent to a second party demanding the fulfillment of a particular condition to resolve a dispute.
They are usually sent when the sender wants their issue addressed urgently. In most cases, the sender usually uses other methods like phone calls and emails to resolve their issue with the offending party. A demand letter is sent when other methods have failed. Usually, it is sent to remind the recipient to settle a debt, make a payment or perform their obligations according to an agreement. Attorneys often write them on behalf of their clients. The clients, in this case, may be individuals or legal persons like corporations or agencies.
As a sender of the demand letter, you often have a set objective for sending the letter. Most attorneys write these letters under their client’s instructions.
When sending this letter, you hope to communicate any of the following messages:
- That you are serious about pursuing the matter legally.
- You wish the court would see that you brought the matter to court in good faith.
- You wish to save on costs should the matter be resolved in your favor.
Generally, demand letters must follow the state law of the jurisdiction in which the issue is being resolved. In particular, demand letters for debt collection matters must be sent according to state laws and the Fair Debt Collection Act. In addition, any letter sent should be done after legal advice. Otherwise, borrowers could be scammed by shady lenders and debt collectors who send letters without following the provisions of the law.
Demand Letter Templates
Your demand letter needs to address your grievances. To achieve this objective, you need to write a comprehensive letter. If you are writing this letter independently, it is advisable to use a template. It will guide you to write a complete demand letter. A pre-made demand letter template will also help you save time as you will fill in your information instead of starting from scratch.
We have provided customizable demand letter templates that you can download for free from below:
Important: Matters regarding non-payment fall under the scope of federal regulations prescribed by the Fair Debt Collection Practices Act (FDCPA). If your matter falls within the above scope, you should ensure you issue your demand in compliance with the FDCPA.
When to Send a Demand Letter?
Demands can be issued if the recipient is legally obligated to address your issue. The recipient should have violated your rights, which will be grounds to issue your demand.
There are, therefore, many instances when you can issue a demand, including:
- Where the recipient breaches your contract and contractual obligations.
- Where the recipient has failed to settle your insurance claim.
- Where you have a business dispute with another business owner.
- Where the recipient has failed to fulfill deliverables owed to you.
- Where the recipient sold you faulty products and has failed to replace them.
Common Types of Demand Letters
Different types of demand letters are issued depending on the reason and expected duration of response.
Some of the types commonly issued include the following:
5-day demand letter
5-day demand letters are issued when the recipient has refused to respond to previous inquiries. The short notice will inform them that the sender will take legal action.
10-day demand letter
The 10-day demand letter is issued to the offending party to pay a debt or fulfill a financial obligation where amicable attempts have failed. In addition, it is used to encourage prompt resolution of disputes.
15-day demand letter
This demand is often issued to request the payment of a debt. However, it can also be used as evidence in court to prove that the sender communicated with the recipient before filing the matter.
30-day demand letter
In 30-day demand letter, the recipient is expected to satisfy whatever demand is issued, for example, debt payment, within thirty days. Failure to which the sender may file a matter in the small claims court.
Attorney demand letter
An attorney demand letter is issued by an attorney for their client. It states the client’s demand and provides the attorney’s contact details.
Breach of contract
A breach of contract demand is issued to compel the recipient to perform a contractual obligation as per an agreement. It often states the violations committed by the recipient.
Car accident
The injured party issues car accident demands to the other driver or their insurance company. They are used as claims for payment and may be used to compel the offending party to pay the injured person’s medical bills.
Chapter 93A
CChapter 93A demand is issued when a business engages in actions that violate consumer rights, such as selling defective goods. They often have a limit of thirty days before legal action is taken.
Child support
Child support letters are issued when the parent responsible for paying child support fails to settle their monthly payment. It should mention the amount of money to be paid and when it should be paid.
Fair debt practices
A debtor sends the fair debt practices letter to the creditor to verify the debt they owe and how they incurred the said amount. It is considered a fair debt practice for debtors to seek this information.
Final (last) notice
The final notice is sent to a debtor to clear their debt before legal action. It is often the last communication before the matter is sent to a collector. The letter often states that it will be the final demand made by the creditor.
Insurance company
The insurance demand is issued by clients seeking the satisfaction of a claim against the insurance company. They usually state the nature of the claim, whether a person or property claim.
Payment
The demand for payment is issued when the sender want to collect payment for goods delivered or services rendered. It often explains the nature of the payment and when it should be rendered.
Personal injury
A personal injury demand is issued when an individual gets injuries from an accident. The demand should be sent with documents supporting the personal injury claim.
Personal property
Personal property demand is issued when a person wants to get their items from another person. The demand should mention that the property belongs to the sender and should be returned within a particular period.
Real estate
The real estate demand letter is issued by a broker to their client requesting the payment of commission or any other payment due for services rendered by the broker. Failure to honor this demand could lead to the broker placing a lien on the property.
Refund
A refund demand is a letter sent to a merchant to return money paid for a good or service. The sender should provide details of the transaction leading to the letter.
Response
A response to a demand letter is written to reply to a demand. It often contains an explanation of the decision of the sender to request payment. It could be used to negotiate different payment terms or extend the period given for payment.
Security deposit
A security deposit letter is issued by a tenant requesting the return of the deposit when they have terminated their lease. In most cases, it is issued after the statutory period of 14 to 60 days.
Settlement
The settlement demand is issued to a claimant offering to settle the dispute through negotiating terms. In this letter, the claimant may be given a counteroffer to settle the matter out of court.
Small claims
The small claims demand is issued before a matter is filed in the small claims court. It can be used as evidence of good faith if the dispute fails to be resolved out of court.
Unpaid wages
The unpaid wages demand letter is issued by an employee to their employer for payment of wages. It should be issued with due regard to state laws, as unpaid wages are not under the scope of the Fair Labor Standards Act.
How to Write Demand Letter: Step-by-Step Guide
Your demand letter should be clear and detailed. It should provide sufficient information for the recipient to understand how the claim began and when they need to pay.
The following steps can guide you to writing a comprehensive demand:
Step 1: Gather all documentation
Before writing your demand, collect all relevant documents supporting your claim, including receipts and medical reports if the demand is for a personal injury claim. You can attach them to your letter when you send it.
Step 2: Introduce yourself
You should begin the letter by introducing yourself. State your name and provide an address. If an attorney writes the demand, the attorney often introduces themselves and states the name of the client on whose behalf they are writing the letter.
Step 3: State the purpose of the letter
After introducing yourself, mention why you are writing the letter. For example, if you are demanding a refund, you should state the actual transaction and provide the transaction number if possible. If it is a demand for a return of security, you should state the amount the landlord owes you as security.
Step 4: Write about what happened
Once you provide your reason, you can relate what events led to your demand. You should mention precise dates and, if possible, the time of each event. They should be explained in chronological order.
Step 5: Cite the laws or contract provisions broken by the 2nd party
Now that you have explained the origin of the conflict, you should justify your claim by stating the laws or provisions the second party has failed to obey by their actions. These provisions can be relied on should the matter be filed in court.
Step 6: Describe your damages
Damages are the monetary compensation you seek because you have experienced loss as a result of the violations committed by the second party. When stating your damages, ensure you provide proof of details. For example, a receipt for medical expenses incurred when treating an injury resulting from an action by the second party.
Step 7: State your requirements and the due date to fulfill them
Once you have explained and described your grievances, you should mention what you want the recipient of the letter to do. If it is a return of security, mention that you want the landlord to return the deposit. You should also state when this demand should be fulfilled and the consequences of failing to honor your demand.
Step 8: Sign your letter
In most demand letters, the demand acts as the conclusion. It is signed like an ordinary letter. For example, “Sincerely, yours faithfully,” followed by your name. If an attorney writes the letter on their client’s behalf, the attorney will sign off with their name.
Step 9: Attach evidence
The demand letter is based on facts that must be proven. Therefore, the supporting documents mentioned or cited in the letter should be attached to your demand. For ease of reference, it is advisable to organize the documents in the order they appear in the letter.
Sample Letter
January 15, 2017
Barbara Newton,
482 Steer Avenue,
7859 Boulevard, TX
Dear Barbara,
I am writing this letter to request the payment of my security deposit. On October 15, 2016, I issued a notice of termination of my lease for Apartment B7 of Layland Properties, where you are the landlord. After that, I requested my security deposit, which is $2,300, per Clause 14 of the lease agreement dated January 15, 2015. Since then, I have made numerous calls, texts, and emails to which you have failed to respond. Finally, on December 20, 2016, you responded to my email stating that you did not receive my notice of termination and would not refund my security deposit.
Your lack of response and communication has caused me great harm, as I have been unable to complete some of my projects. I, therefore, demand that you refund the above-stated security deposit within 15 days from the date this letter is issued. If you fail to honor your obligations, I will be forced to pursue this matter in court without further reference to you.
Once again, your prompt action concerning this matter will be appreciated.
Sincerely,
Greta Adkins.
Effective Practices to Consider
The demand letter is a notice to the second party that you intend to resolve your dispute promptly, whether through amicable or legal means. This objective must be communicated in your demand letter appropriately. While there are standard practices like having an introduction, body, and conclusion, you must consider using effective practices to write a comprehensive letter.
Some of these practices include the following:
Type the letter
Your letter should be typed for easy reading. In addition to typing, you should use simple fonts that are easy to read. You can access a computer at a library or cybercafé at a low cost.
Be polite
While you might be making a demand, you should maintain a polite tone throughout your letter. This letter may be used as evidence; the court might infer negatively if the letter is written in an aggressive tone.
Make copies
You should make copies of all documents you will use in demand, including your demand letter. It is important to have copies because you might need to use them in court as evidence during proceedings.
Use certified mail
Certified mail comes with a receipt on successful delivery. Therefore, if the second party denies receiving any documents, the receipt can be used to counter these claims.
Avoid threatening and disparaging
Legal matters should always be handled with professionalism. Everything in it, from its tone and contents to its language, should be stated formally. Instead of issuing threats, you can indicate to the recipient the legal consequences of failure to honor the demands. The disparaging language might be perceived and make the second party reconsider reaching an amicable solution.
Keep it brief
The letter should be written with the objective in mind; as such, you should avoid including irrelevant details which might make your letter unnecessarily long.
Avoid getting emotional
While your grievance might have caused you emotional distress, avoid using emotive words. Your letter should be based on facts.
Putting It Altogether
A demand letter is used to encourage prompt response from a second party. It helps you solve a dispute out of court, which is often less costly and can help you maintain an amicable relationship with the second party. With all these factors considered, your letter should be polite and formal. Begin the letter by stating why you are writing it; then explain the order of events that caused your grievance. You should then state your demand and mention when it should be honored. Once you conclude the letter, proofread it and edit it to ensure you have given precise information and have made no spelling and grammatical mistakes.