Payment Demand Letter

Create Document

A payment demand letter is a notice sent to someone who owes the sender money and demands that they pay the debt. The letter will relay the full amount owed to the sender, the reason for the debt, and warns that action will be taken to recover the debt if the recipient doesn’t comply.

Payment Demand Letter

A payment demand letter is a notice sent to someone who owes the sender money and demands that they pay the debt. The letter will relay the full amount owed to the sender, the reason for the debt, and warns that action will be taken to recover the debt if the recipient doesn’t comply.

Create Document
PDF
Word (.docx)
OpenDocument
PDF
Word (.docx)
OpenDocument

Last updated March 21st, 2025

Document Preview

A payment demand letter is a notice sent to someone who owes the sender money and demands that they pay the debt. The letter will relay the full amount owed to the sender, the reason for the debt, and warns that action will be taken to recover the debt if the recipient doesn’t comply.

Downloads: 1
  1. Home »
  2. Demand Letter »
  3. Payment

When to Send a Demand Letter

A demand letter for payment should be sent after reasonable efforts have been made to collect the amount owed and before any legal action is taken.

The letter notifies the recipient of the severe consequences if they fail to respond to the letter, which may include hiring a collection agency or filing a lawsuit against them.

Payment Options

To make it easier for the recipient to comply, the sender may offer payment options, such as paying a reduced amount or an installment plan whereby weekly or monthly payments are made until the debt is paid off.

Sample

Download: PDF, Word (.docx), OpenDocument

PAYMENT DEMAND LETTER

[SENDER NAME]
[SENDER ADDRESS]
[SENDER CONTACT INFO]

Date: [DATE]

[RECIPIENT NAME]
[RECIPIENT ADDRESS]

THIS IS AN ATTEMPT TO COLLECT A DEBT.

AMOUNT DUE $[AMOUNT DUE]

Dear [RECIPIENT NAME],

You currently have an outstanding balance with [NAME OF CREDITOR] in the amount of $[AMOUNT DUE].

The outstanding balance is in regard to: [REASON FOR DEBT].

In order to resolve this matter, we have provided the following payment options:

Full Amount: $[FULL AMOUNT] due by [DATE].

Discounted Amount: $[DISCOUNTED AMOUNT] if paid by [DATE].

If there is no response to this demand letter by [DATE], all legal rights may be explored to recover the debt without further notice, including, but not limited to, legal proceedings necessary in accordance with state and federal laws.

This demand letter serves as official notice to you and may be tendered in court as evidence of your failure to pay. If legal action is to occur, you may be held liable for court fees, attorney’s fees, and damages, and your credit score may be affected.

We hope to resolve this matter as soon as possible.

Sincerely,

______________________
[SENDER’S NAME]