What Is a Demand Letter?

A demand letter is a formal written request that someone pay money or do something they owe you, sent before you go to court. Many disputes end at this step, which makes it one of the cheapest tools in the legal system.

When a demand letter makes sense

• Someone owes you money and has stopped responding.
• A contractor did poor work or did not finish the job.
• A landlord kept your security deposit without a fair reason.
• A business sold you something defective and will not make it right.
• After an injury, a lawyer usually sends one to the insurance company before filing suit.

Some courts and some types of claims expect a demand before a lawsuit is filed, and a clear letter shows a judge you tried to resolve things first.

What to put in it

1. The facts, briefly and in order, with dates.
2. What you want: an exact dollar amount or a specific action.
3. Why you are owed it, such as the contract, invoice or law involved.
4. A deadline to respond, often 10 to 30 days.
5. What happens next if they do not respond, such as filing in small claims court.
6. Copies of key documents, not originals.

Keep the tone factual and calm. Threats or insults can backfire and the letter may be shown to a judge later. Send it in a way you can prove it was delivered, and keep a copy.

Writing it yourself or using a lawyer

For small amounts, a letter you write yourself is often enough, especially if the next step would be small claims court. A letter on a law firm's letterhead tends to get more attention for larger claims, and a lawyer can make sure you do not accidentally give up rights or make claims you cannot support.

If you receive a demand letter

Do not ignore it, and do not rush to admit anything. Check whether the claim is valid, note the deadline, and consider talking to a lawyer, especially if a large amount is involved. A demand letter is not a lawsuit, but it is often the last step before one. See what to do if you are sued.

Need one sent or answered? Find a civil litigation attorney near you.

This guide is general information, not legal advice.