Sending a letter of demand is an essential step that must be taken before concluding formal legal action against a debtor who is not paying you.
If someone owes you money for goods or services, you have 6 years to consent an action Before lodging your claim in court, it is a requirement that a letter of demand must be sent to the debtor.
First, the letter must state that it is a demand. This may seem obvious, however without this element, a debtor can claim to the court that they did not receive a formal demand.
Lastly the letter must be be dated so that the debtor knows The letter should give the debtor about 2-3 weeks to pay the debt dependent on how many letters you send before the final one.
If a debtor does not respond to your letter, generally 2-3 letters should be sent. The debt and the debtor are not received the letter, they will not have an excuse if 3 letters are sent. It is recommended to send it by registered post. Sending it by registered post gives you proof that your letter was actually was received Other acceptable methods to send the letter of demand are by fax and keeping the fax receipt and by email where a read receipt is received.
You will require evidence of having attempted to resolve your debtor and your receipts before lodging your claim in court. The letter of demand is evidence of your attempt to settle with the debtor before resorting to court as well as notice to the debtor The debtor can not state they had no notice of the debt nor that they had no opportunity to rectify the debt.
If after sending 2-3 letters of demand and there is no response the next action to take will be to file a formal statement of claim with the relevant court in your state.
