A letter of demand is a formal communication that’s used when you need to collect a debt. It can be sent by post or electronically, and it lets the debtor know that they have not made payment and that you’re going to take further action if they do not pay.
Get it in writing.
Sending your letter of demand is the most important part of the process. There are three ways you can send your letter: by post, by email, or fax.
When sending a letter by post, it’s best to make an impression on the recipient with an official looking envelope and professional paper. You should also include a copy of your invoice inside the envelope if you have one available at this time. The amount that was agreed upon in your contract should be clearly stated in this letter too so there will be no confusion later on down the track!
Provide details of the outstanding payment.
You should provide details of the outstanding payment. This includes:
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The amount owed;
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The date on which payment is due;
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Any fees, penalties or interest charges that have accrued since the original payment date;
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Details of your bank account (including your BSB number) and your preferred method of payment; and
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Any transaction numbers you may have for this particular debt, as well as its invoice number.
Include your deadline for payment.
The deadline should be reasonable and clear, but not too far in the future. If you do need to extend the deadline, make sure to send another letter with your new deadline. Remember to keep on top of this if your debtor keeps missing their deadlines.
Include information about any further action you’ll take if they fail to pay by the deadline.
You should also state that you will take further action if they fail to pay by the deadline.
It’s recommended that you provide as much detail about these actions as possible. For example, if you’re going to pursue legal action against them, state what court or tribunal will hear your case, and when it will begin. If you intend to contact their superiors at work or through the media, include a list of people who can be reached for comment along with their contact details (phone numbers, addresses and email addresses). This type of information may not be relevant in all cases, but it will show that you’re serious about pursuing this matter if necessary.
Request an acknowledgement of receipt of the letter.
When you send a letter of demand, it’s important to request an acknowledgement of receipt for the letter. This is done so that you can prove that the other party received your letter and understand what it requests. The acknowledgement should include:
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Date and time of receipt
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Name of person who received the document/letter
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Signature or name, as well as their position in the company (e.g., “Registrar”)
A letter of demand that’s clear and well-formatted can help you collect a debt
A well-written letter of demand can be an effective way to collect a debt. If you’re owed money, it’s important to send the right letter at the right time.
The main purpose of a letter of demand is to inform the debtor that you intend to take legal action against them if they don’t pay their debt in full by the given deadline. It’s also an opportunity for you to let them know that their behaviour has been unacceptable and that this is not what they should expect from their service provider or business partner.
In addition to these important steps, there are some other things you’ll want your letters of demand to include:
Conclusion
Now you know how to write an effective letter of demand in Australia. A well-formatted and clear letter is the first step towards getting your money back, so make sure to follow these guidelines when creating one. When writing any legal documents, it’s important that they’re precise and accurate – this will help ensure your success!
Contact Mullavey Lawyers for more information about writing a proper letter of demand and other legal documents.