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LETTER OF DEMAND
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What is a Letter of Demand?
A Letter of Demand is an official document that is used to issue a formal demand to an individual or business that owes you money for an outstanding debt or invoice. In Australia, issuing a Letter of Demand is the first formal step a creditor takes when they decide to escalate their matter in order to make a debtor pay the amount owed.
When do you need a Letter of Demand?
You issue a Letter of Demand after your first and second reminder letters to your debtor were left unanswered. So, before you decide to send this letter, make sure you have sent the appropriate reminders to your debtor.
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Actual Layout of the Letter
[letter-date]
[Debtors-business-name]
[Debtors-full-name]
[Debtors-address1]
[Debtors-address2]
Dear [Debtors-full-name],
Your account has gone beyond the usual terms offered by us. We assume this is an oversight and request immediate payment of $[amount].
Your urgent attention to this matter will stop further action which may include referral to a debt collection agency or legal action.
We require immediate payment direct to our office by [payment-date] in order to suspend further action, if you are not able to pay the amount in full or wish to discuss the account please contact our office immediately.
Yours Faithfully
[Business-name]
[Phone-number]
[Email-address]