What Is A Demand Letter And The Ways To Use It?

credit collection services

If you are confused about what a demand letter is, we are here to help. We often face situations where our clients know little to nothing about a demand letter. Oftentimes they hire an attorney to send a demand letter before submitting it to collections. Attorneys may write a single demand letter within a short time interval. However, sending a demand letter is not the end of things. Clients need to know the implications of a demand letter and use it to their advantage.

But first, let us take a look at the contents in a demand letter-

What does a demand letter contain?

It mostly includes,

  • A brief overview of the relationship existing between the client and the person who owes the debt.
  • The elaborate detail of the kind of debt
  • Legal justifications on reasons why the demand was drafted
  • A brief discussion on the previous attempts made to receive payments.
  • A strict demand for payment and the time allocated to clear them.
  • Client’s course of action, if payment is not made.

Many companies do not hire an attorney and send a demand letter through their company letterhead. This letter will contain the final deadline and also the maximum time within which a debtor has to pay his dues. As a commercial collection firm, we recommend this. It saves money and also client faith. Being in this collection business, for a long time, we understand the necessity of each client to save their reputation while dealing with unpaid dues. This is one such way to get the task done without any negative impact.

There is more to know about the demand letters than the basic content. This is a necessary information for the client, who wants to draft a demand letter.

Here are our top 2 facts about Demand Letters-

Courts approve of Demand Letters

If bad goes to worse, any collection agency services will advise the client to seek legal help. If one drafts a demand letter, before taking someone to court, the judges will approve of the practice.

Demand Letters can be used against clients.

There is a reason why we advise our clients to sensibly draft a letter. It can be used against the client if the contents are threatening or malicious, chances are the court will take strict action against the client.

At Nelson Cooper & Ortiz, LLC we make sure that our clients have complete information before going forward with a demand letter. Our unique credit collection services include guiding the clients in such a way that their payments are cleared, without any mishappening. The team of experts makes use of their years of experience to aid the demand drafting process. Call us at  (713) 360-6645 for any kind of business debt collection services.