demand letter

  

Definition

Formal letter from an attorney on behalf of a client, demanding payment or some other action from another party. Although commonly not a legal necessity in filing a suit, a demand letter is sent usually to settle the matter without litigation or to put pressure on the other party. In general, a demand letter states (1) what payment or action is demanded, (2) why, (3) how the payment or action may be effected, and (4) a time limit. It usually also carries an express or implied threat that otherwise a court case will be instituted forthwith.

Use demand letter in a sentence

  • The demand letter was received by the bankruptcy client who then forwarded it to us, who then asked the debt collector to not contact our client directly again.

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  • Citi Bank had provided a large loan to John's business in which he was behind on payments by six months, so they sent him a demand letter laying out how much he needed to pay by the first of the month in order to avoid legal action against him.

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  • The rental agency issued a demand letter to the customer stating that he would be subject to further litigation if he did not satisfy the delinquent charges that he accrued during his rental term.

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