What to include in a consumer demand letter

What to include in a consumer demand letter

| Nov 6, 2020 | Consumer Debt Collection

Businesses here in California and across the country generally do not provide their goods or services for free. They require payment from clients and customers, and when it is not received, it potentially damages the business. In most cases, a business will not want to go directly to litigation. Instead, a demand letter is often the best first step.

Recognizing the need for a demand letter and writing a good one are two different things. Before filling in the particulars regarding a certain outstanding consumer debt, it would be a good idea to consider the following:

  • Summarize the particulars in the first paragraph
  • Maintain a professional tone in the letter, but make sure it is written to the appropriate audience
  • Include as many details and facts regarding the circumstances that gave rise to the letter as possible without inserting conjecture or personal feelings
  • Make the demands included in the letter reasonable

Using the above tips, it would appear that writing and sending a demand letter should be a simple process. However, it may not be the case. A California business may decide to send a letter on its own requesting payment, and it may work.

However, it may not comply with applicable laws or provide the best evidence of an attempt to collect the debt. Moreover, it may lack the ability to provide an incentive for the other party to pay. To help correct these issues, it would be a good idea to consult with an attorney knowledgeable in consumer debt collection.