A demand letter is often the fastest and least expensive way to collect a debt. Many debtors who ignored your own invoices and phone calls will pay promptly once they receive a letter from a lawyer, because the letter tells them a lawsuit is the next step. Call 212-233-1233 to have a demand sent on your behalf.
Why an Attorney's Demand Works
When a creditor demands payment, the debtor weighs whether the creditor will actually follow through. When the demand comes on a law firm's letterhead, that calculation changes. The debtor now sees a credible threat of suit, the cost and disruption of litigation, and the prospect of a judgment with interest and possibly attorney's fees added on. For many debtors, paying the balance is simply the cheaper option.
What a Good Demand Contains
An effective demand letter is firm, specific, and accurate. Ours typically set out:
- The exact amount owed and how it was calculated
- The basis for the debt, the contract, invoices, or note
- The interest that is accruing and any attorney's fees the contract allows
- A clear deadline for payment
- A statement that suit will follow if the debt is not paid
Doing It Correctly
A demand letter that overstates the debt, threatens action the creditor cannot legally take, or otherwise crosses a line can backfire and even expose the creditor to liability. Because we handle business-to-business collections, the federal Fair Debt Collection Practices Act generally does not apply, but the demand still has to be accurate and lawful. Having an attorney draft it protects you while maximizing pressure on the debtor.
If the Demand Is Ignored
A demand letter is the opening move, not the whole strategy. If the debtor does not respond, we are ready to follow through with suit, obtain a judgment, and enforce it. The credibility of the demand comes precisely from our willingness to take the next step.
To have a demand letter prepared and sent, call 212-233-1233 or email [email protected].
