Demand for Money Owed Letter


Overview
The Demand for Money Owed Letter is used to make a formal, written demand for payment.
In many cases, an overdue payment is an indication of more serious problems.  It may be your first evidence of the payer's financial problems or an allegation that the money is in fact not due.  
It is often necessary to send a written notice to find out what is causing the delay and to let the payer know you are serious about collecting the obligation.
If the delinquent party does not pay, you may have to go to court to get relief.  Remember that for smaller, less complex claims, small claims court may be your best option.
Remember that statute of limitation laws may prohibit claims after a period of time.  The time depends upon the kind of claim and the applicable state law.  That period may be as short as one year from the date the claim arises.  Do not sit on your claim for too long a period because you may lose the right to bring your lawsuit.

When You Need It
-When you experience problems with payments that are due you.
-If you do not get a satisfactory answer from a phone call, immediately follow-up with a written demand.

Getting Started

You will need:
-The name and address of the individual or company that owes the money.
-The basis of your claim for money (contract, personal injury, invoices, etc.), including the amount and the original due date.
-The deadline for receiving payment due.

When to Review and Revise 
-To correct or add to the information contained in the letter.
-To address another demand for payment.