The definition of a ‘demand letter’
A demand letter formally business letter, sent to the debtor demanding payment. A demand letter is often written by a lawyer to ensure professionalism and compliance with certain laws. Typically, a demand letter is not sent until the payment is not time. A demand letter is often preceded by phone calls and other more friendly attempts to remind the debtor of the obligation.
Many people consider a demand letter version of the layman’s legal complaint.
Breaking down the ‘demand letter’
In the US, some letters may fall under the purview of the Law on fair debt collection (fdcpa) or may be subject to state laws. These laws are the rules that must be followed when collecting a debt and allows the debtor to claim damages, if these rules are not respected. Thus, the lawyer is often involved in attempting to collect seriously overdue debts.
Although such letters are not legally binding, they are often used, especially in the area of contract law, tort law and commercial law cases. Thus, it is not uncommon for dubious pseudo-collection Agency, send a seemingly viable demand letters requesting immediate payment — although technically not a letter is appropriate. These types of schemes often end up to outright fraud, where unsuspecting consumer loan borrowers send the payment by mistake.
In practice, there is no minimum or maximum length for the demand letter. Ideally, the shorter the better. It should be long enough to explain their intentions, anything more starts to harm the effectiveness of the letter. The letter, which just will help to demonstrate the seriousness of a legal dispute — the court clerk and the judges, who are very busy, may look favorably on concise as well.
Demand letters in personal injury
In personal claims for damages, negotiating settlement process begins with the victim submitting a demand letter to the insurance companies. The purpose of the letter the requirement to present the facts about the accident to convince the insurance company to provide adequate compensation. A typical letter of demand can be structured in the following way:
- Description of the accident
- A discussion of the limited liability of the accident
- Description personal injury
- Description of medical procedures
- The list of medical bills/lost reports on profit and loss
- The Demand For The Estimated Injuries