Letter of Claim Template
Demand letter - what is it?
A letter of demand is a letter a creditor (or its debt collection agency or lawyer) sends to its debtor to collect one or more unpaid claims that the debtor has defaulted on.
Typically, a demand letter is sent on behalf of one or more invoices that have not been paid.
The purpose of a letter of demand is to give the debtor a minimum of 10 days to pay his or her defaulting debt. If the debtor chooses not to pay the debt in response to the demand letter, it allows the creditor, the creditor's debt collection company or the creditor's debt collection lawyer to start debt collection proceedings.
In other words, a debt collection process must not be initiated until a demand letter has been sent to the creditor and the 10-day payment deadline has been exceeded.
In everyday language, a demand letter is also known as a debt collection notice, a debt collection letter, a §10 letter or a demand letter.
Why use a template for a letter of formal notice?
There are no legal formalized requirements on how a letter of demand should look, be designed or set up.
However, there are a few important things you should be aware of, cf. section 10 of the Debt Collection Act. Firstly, the creditor must be able to visibly identify your claim and the debtor must have a minimum of 10 days to pay the claim.
Here at Collectia, we have more than 150 years of experience in debt collection and therefore naturally have extensive experience in handling demand letters.
Download a free template for demand letters here:
