The Do’s and Don’ts of Writing a Demand Letter

A demand letter is a formal communication written to encourage the recipient to take a certain action, such as paying a debt or completing a service. The sender hopes the letter will help resolve the dispute so they can avoid taking the issue to small claims court.

Writing a demand letter is important because it helps the sender outline their case, show they've made an attempt to resolve the issue outside of court, and in some situations, fulfill the necessary court requirement before filing a small claims case.

If you're wondering how to write a demand letter, we're here to help. We'll offer some do's and don'ts associated with writing a demand letter, provide a demand letter sample, and cover the importance of working with a debt collection attorney.

Your first step in filing a small claim

There are various scenarios that could prompt you to file a small claim. For instance, maybe your landlord owes you a security deposit, an auto repair shop charged you for services they didn't deliver, or your client hasn't paid you for the repair work you completed for them.

Now, you've decided it's time to file a small claim. You've heard it's relatively easy and pain-free. But you realize that you have no idea where to start. How do you even initiate your claim? Well, you begin by writing a demand letter. A demand letter is key to getting your dispute off the ground and into the small claims courthouse.

First, determine what you want to achieve by sending a demand letter. For instance, do you want the recipient to send a payment? Or do you want them to provide necessary repair work after an incident? Formulating specific goals for the demand letter will help you draft a message with a clear and concise purpose.

Next, consider the potential outcomes of the letter, which could include the following:

• The recipient complies with the demand letter and agrees to the terms, allowing you to avoid the court system
• The recipient ignores the demand letter, which may prompt you to file a small claims court case
• The recipient refuses to comply with the demand letter, so you may decide to take legal action

If the recipient ignores or refuses to comply with the demand letter, you don't have to pursue a lawsuit. However, you may not resolve the issue or receive the outcome you want without pursuing legal action.

How to write a demand letter: Do’s

When writing a demand letter, keep some of this advice in mind to create a convincing and professional message to help yield the results you want.

• Outline the facts. Detail the dispute, including dates, locations, and the initial written agreement or contract. You'll want to give a brief history of the dispute and explain why there has been no agreement so far. While your opponent may know exactly what happened, a judge or court clerk who may end up reading it will not.
• Make your demand. Clearly state your demand. Assign a dollar value at a reasonable price if they owe you money, or explain what specific actions you want them to take. Be sure to include relevant receipts, invoices, and evidence that back up your demand. If you are willing to accept a lower amount in settlement, say so. If not, make that clear as well.
• Provide a timeline. Determine a specific date for when you expect them to respond to your demand.
• Set clear consequences. Be polite, concise, and specific about what you want and what your next step will be if the problem is not resolved. Let the other party know that if you are not able to come to an agreement, you will file in small claims court and promptly pursue legal remedies, such as reporting the debt to credit agencies.
• Be polite. It's important to remain calm and professional. Remember, you want to resolve this dispute and avoid further escalating the issue.
• Get professional advice. Hire a debt collection attorney to help you write a persuasive demand letter that includes all the legal components. At LegalZoom, you can consult with an attorney who will review, revise, and tailor your demand letter to suit your needs.
• Keep copies. Keep a record of your correspondence, including copies of your demand letter and related documents and evidence.
• Send your demand letter via certified mail. Ensure there is a return receipt requested so you have proof of delivery.

What to avoid when writing a demand letter: Don’ts

When writing a demand letter for payment or services, small mistakes can make a big difference.

• Don’t use emotional language. Do not use language that will convey your frustration or anger. Creating a negative mood will only lessen your chances of reaching an agreement and could threaten your credibility.
• Don’t threaten or personally attack the recipient. Avoid threatening or disparaging the other person. The idea of the letter is to show the other person you are serious and give them a chance to consider their legal choices. It is not an opportunity to insult them or create an adversarial relationship.
• Don’t be vague. Clearly state the details of your claim, timeline, and your demands.
• Don’t delay. Send a demand letter as soon as the issue arises to show you are being proactive about solving the problem.
• Don’t hand-write your letter. Type your letter on a computer to ensure the document is legible and looks professional as it may be entered as evidence if a claim is filed in court.
• Don’t assume non-delivery. Instead of sending the letter through regular mail, send it via certified mail and request post office receipts to prove the recipient received the letter.

How long should the demand letter be?

There is no minimum or maximum length for a demand letter. However, shorter is better. It should only be long enough to clarify your intent, not a page more. A letter that gets to the point will show your opponent that you are serious about the lawsuit. It will also help the court clerk and the judges who are extremely busy. The less you give them to read, the better it will be for your case.

Legal considerations and potential risks

Because there are legal considerations and implications associated with writing a demand letter, we advise getting professional advice from a legal expert. At LegalZoom, our business attorneys can help you customize your demand letter.

The following are some ways in which an attorney can help when drafting and sending a demand letter:

• Review your statements to ensure accuracy and truthfulness to avoid defamation or libel claims
• Collect relevant documents that support your claims, provide evidence, and prove your credibility
• Understand time limits associated with legal claims to avoid invalidating your demand
• Ensure your demand letter is compliant with state and federal laws, such as the Fair Debt Collection Practices Act (FDCPA), which regulates how debts can be collected
• Establish professionalism to avoid accusations of harassment or threats
• Submit a copy of your demand letter with the county clerk to record your efforts

Demand letter sample

Now, what about sample demand letters? Let's consider what a sample letter may look like if you had to send one to a home contractor who didn't complete the services agreed upon in your contract.

For instance, maybe you paid the home contractor in full to install a new sink in your bathroom, but they didn't finalize the job, leaving you with a gaping hole in your powder room. In this case, you might write a letter demanding that they cover the costs for another company to complete the job.

A demand letter sample might look like the following:

August 1, 2024

Sam's Home Renovations
2233 Farms Road
San Diego, CA 92107

Dear Sam,

On June 15, 2024, I hired you to install a new sink in my downstairs bathroom at 2121 Elk Road. We signed a contract on June 20, and I wrote you a check for $1,500 to complete the services. Your business cashed the check on June 23.

Your team arrived at my house on June 25, removed the old sink, and promised to return the following day to install the new sink. No one showed up on June 26 as scheduled, and my phone calls went unanswered. I left a voicemail with your business on June 26 and followed up with an email on June 27. I called several more times and left another voicemail on June 30 and July 9, and sent three more emails on July 5, July 10, and July 15.

I have not received any phone calls or emails from your business, and I'm still waiting to receive the sink installation that I paid for. Your team left a hole in my downstairs bathroom where the new sink should be, and as a result, my family cannot use the space. Because I have not received a response, I am forced to hire another company to complete the job, and I demand that you cover the costs.

I am enclosing an estimate for $750 for Ross Reno to complete the job. Please send $750 by August 20, 2024. If I do not receive the payment by that deadline, I will file a claim with small claims courts to resolve this matter.

Thank you,
Lynn Joyce

FAQs

If you still have questions about demand letters, review the answers to these frequently asked questions.

What should be included in a demand letter?

A demand letter should clearly state the details of the dispute, describe the demand, and provide a deadline for the other party to take action. The letter should also include consequences if the demands aren't met.

Do attorney demand letters work?

Yes, demand letters can work as they show the other party you are serious about your demands and that you will promptly file a small claims case if they don't comply.

What are the benefits of a demand letter?

The benefits of a demand letter are that it concisely outlines the dispute and provides clear instructions for resolving it. If the other party complies, then the benefit is that you can solve the issue without taking it to court. However, if the other party doesn't comply, then the benefit is that it shows you've taken steps to resolve the issue on your own before involving the courts.

How long after a demand letter can I expect a settlement?

It could take several weeks to months, depending on various factors. If the other party complies, you could receive payment by the deadline outlined in the letter. However, if the other party ignores or refuses to comply with the letter, you may need to seek legal action, which could lead to a lengthy court proceeding.

What happens after my lawyer sends a demand letter?

After sending the letter, you have to wait to see how the other party will respond. They will either comply, ignore the demand, or refuse to comply. If they comply, they'll fulfill the demand and resolve the issue, but if they ignore or deny it, then you and your lawyer may need to explore your legal avenues.