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What is a Letter of Demand (Final reminder)?
A Letter of Demand (Final reminder) is a short, clear final demand for payment of amounts due. It states the debt that is owed, why it is owed, and when the debt must be paid.
Letters of demand (also known as payment reminder letters) are important because they timestamp the collection process, and serve as important evidence in legal proceedings that ensue (if any). The Letter of Demand (Final reminder) is the ultimatum – the collection will escalate into legal action if repayment is further delayed.
This can be sent when you’ve unsuccessfully tried multiple times to get your invoice paid. A letter of demand mentions the exact amount you are owed, along with when the payment needs to be made and also what the payment is for. This can be a final reminder that moving forward you will take legal action too.
While a Letter of Demand is definitely the more formal way to address dues, it is always best to use friendlier ways first.
Key points included
– information about the transaction for which the debt was incurred;
– information about the invoices dispatched to the recipient;
– information about the original due date of the debt;
– date of the first and second reminder letters.
Alternative names for a Letter of Demand (Final reminder)
Final Recovery Notice, Final Demand Notice, Final Payment Reminder
Related Documents
If you're creating a Letter of Demand (Final reminder), you may also be interested in the following documents:
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