Response to Creditor's Demand


Overview
The Response to Creditor's Demand is used to reply to a creditor who has made a written demand for payment.
Even if a claim is not warranted, it is important to respond to a creditor in writing.  Otherwise, the creditor is left with no option except to consider the debt as valid and one that should be referred to a collection agency or attorney for further action.  
A telephone call is not enough.  It is important to have a written record of your response.  This will help if the creditor later claims you did not respond, or if the claim is referred to your credit file.  
Be sure to retain copies for your files.  Also remember to supply copies of other correspondence, credit card statements, canceled checks or other proof of your position. 
To protect your credit rating, it may be necessary to provide the credit bureau with evidence that the creditor's claim is not valid.  This letter and other correspondence can help you make your case.  For more help with credit bureaus, see the documents entitled "Request for Credit Report" and "Letter Disputing Credit File." 

When You Need It
-To reply in writing to a creditor who has made a written demand for payment.

Getting Started

You will need:
-The name and address of the creditor to whom you are responding.
-The reason for non-payment of the amount allegedly owed and what you expect to happen next.
-Review the letter and modify as necessary to fit the circumstances of your situation.

When to Review and Revise 
-To correct the information contained in the letter.
-To document your response to another demand for payment.