COLLECTIONS DEMAND LETTER

SECTION A: BUSINESS-TO-BUSINESS (B2B) COLLECTIONS DEMAND

[LAW FIRM NAME / CREDITOR NAME]
[ADDRESS LINE 1]
[ADDRESS LINE 2]
[CITY, STATE ZIP]
Tel: [TELEPHONE]
Fax: [FAX]
Email: [EMAIL]

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[DATE]

[DEBTOR COMPANY NAME]
Attn: [ACCOUNTS PAYABLE / CFO / PRINCIPAL NAME]
[ADDRESS LINE 1]
[ADDRESS LINE 2]
[CITY, STATE ZIP]

Re: DEMAND FOR PAYMENT - PAST DUE ACCOUNT
Account/Invoice Number(s): [ACCOUNT/INVOICE NUMBERS]
Original Creditor: [CREDITOR NAME]
Total Amount Due: $[TOTAL AMOUNT DUE]
Days Past Due: [NUMBER] days

Dear [RECIPIENT NAME]:

This firm represents [CREDITOR NAME] (the "Creditor") regarding your outstanding account balance. Despite prior invoices and collection efforts, your account remains delinquent. This letter constitutes a FINAL DEMAND FOR PAYMENT before legal action is initiated.

I. STATEMENT OF ACCOUNT

The following amounts are now due and owing:

Additional Charges (as permitted by contract and/or law):

Interest continues to accrue at the rate of $[AMOUNT] per day until paid in full.

II. BASIS FOR DEBT

The debt arises from [SELECT AND DESCRIBE]:

☐ Goods Sold and Delivered: Between [DATE] and [DATE], Creditor sold and delivered goods to you pursuant to [DESCRIBE - purchase orders, invoices, contract]. You accepted delivery of the goods but have failed to pay as agreed.

☐ Services Rendered: Between [DATE] and [DATE], Creditor performed services for you as described in [CONTRACT/AGREEMENT]. The services were completed to your satisfaction, but payment has not been received.

☐ Open Account: You maintained an open account with Creditor and made purchases on credit. Attached as Exhibit A is a complete account statement showing all transactions, payments, and the current balance.

☐ Promissory Note: On [DATE], you executed a promissory note in the original principal amount of $[AMOUNT]. You have defaulted by failing to make payments when due.

☐ Guaranty: On [DATE], you executed a personal/corporate guaranty of [OBLIGOR'S] obligations. The principal obligor has defaulted, and demand is now made upon you as guarantor.

III. PRIOR COLLECTION EFFORTS

Creditor has made multiple attempts to resolve this matter amicably:

Despite these efforts, you have failed to pay or make satisfactory arrangements.

IV. CONTRACTUAL AND LEGAL AUTHORITY

A. Contract Terms

The [CONTRACT/INVOICE/AGREEMENT] contains the following relevant provisions:

• Payment Terms: "[QUOTE PAYMENT TERMS - e.g., Net 30, Due Upon Receipt]"
• Late Charges: "[QUOTE LATE FEE PROVISION]"
• Interest: "[QUOTE INTEREST PROVISION]"
• Attorney Fees: "[QUOTE ATTORNEY FEE PROVISION]" [// GUIDANCE: Only claim if contract provides]
• Venue/Jurisdiction: "[QUOTE FORUM SELECTION CLAUSE IF ANY]"

B. Applicable Law

Under [STATE] law, Creditor is entitled to:

1. Breach of Contract Damages: Recovery of all amounts due under the contract, plus incidental and consequential damages. See [CITE STATE STATUTE OR CASE LAW].

2. Prejudgment Interest: Interest on the unpaid balance at the contractual rate, or if none, at the statutory rate of [X]% per annum. See [CITE STATE STATUTE].

3. Attorney Fees and Costs: [IF CONTRACTUAL] As provided in the parties' agreement, all costs of collection including reasonable attorney fees. [IF STATUTORY] As provided by [CITE STATUTE].

4. Account Stated: By retaining invoices without objection and making partial payments, you have acknowledged the debt. Under the doctrine of account stated, the balance is presumptively correct and enforceable.

V. DEMAND

DEMAND IS HEREBY MADE that you pay the total sum of $[TOTAL AMOUNT DUE] within [10/15/30] calendar days of your receipt of this letter.

Payment Instructions:

By Check:
Make payable to: [PAYEE NAME]
Mail to: [PAYMENT ADDRESS]
Reference: [ACCOUNT NUMBER]

By Wire Transfer:
Bank: [BANK NAME]
ABA/Routing: [ROUTING NUMBER]
Account: [ACCOUNT NUMBER]
Reference: [ACCOUNT NUMBER/DEBTOR NAME]

By ACH:
[PROVIDE ACH INSTRUCTIONS IF ACCEPTED]

VI. CONSEQUENCES OF NON-PAYMENT

If payment is not received within the time specified, Creditor is prepared to take the following actions WITHOUT FURTHER NOTICE:

☐ File Suit: Creditor will commence legal action in [COURT/JURISDICTION] to recover the debt, plus interest, attorney fees, and court costs.

☐ Obtain Judgment: Following judgment, Creditor will pursue all post-judgment remedies, including:
- Bank account levies and garnishments
- Wage garnishment (if applicable)
- Liens on real and personal property
- Judgment liens affecting your credit
- Asset seizure and execution

☐ Credit Reporting: The delinquency may be reported to commercial credit reporting agencies, which may adversely affect your business credit rating and ability to obtain credit.

☐ Personal Guarantor Pursuit: If the debt is guaranteed, simultaneous action will be taken against all guarantors.

☐ UCC Remedies: If applicable, Creditor will exercise all rights under Article 9 of the Uniform Commercial Code, including repossession of collateral.

VII. SETTLEMENT OPPORTUNITY

While Creditor is prepared to litigate, we are authorized to discuss potential resolution short of litigation. If you wish to propose a payment plan or settlement, contact the undersigned within [5/7] days of this letter. Any payment arrangement must be:

• In writing
• Signed by an authorized representative
• Include a confession of judgment or security (may be required)
• Provide for accelerated payment upon any default

NOTE: Creditor is under no obligation to accept any payment plan and reserves the right to proceed with legal action at any time.

VIII. DOCUMENT PRESERVATION

You are hereby notified to preserve all documents and records relating to:

• The transactions giving rise to this debt
• All communications with Creditor
• Financial records showing ability or inability to pay
• Any defenses or disputes you may claim

Destruction of relevant documents may constitute spoliation of evidence and result in sanctions.

IX. RESERVATION OF RIGHTS

Creditor reserves all rights and remedies available at law and in equity. This demand does not constitute a waiver of any rights, including the right to seek additional damages discovered after the date hereof. Time is of the essence.

Please govern yourself accordingly.

[LAW FIRM NAME / CREDITOR NAME]

By: _______________________________
[NAME]
[TITLE / BAR NUMBER]
[TELEPHONE]
[EMAIL]

Date: [DATE]

Enclosures:
☐ Account Statement (Exhibit A)
☐ Contract/Invoice Copies (Exhibit B)
☐ Prior Correspondence (Exhibit C)

cc: [CLIENT] (via email)

---

SECTION B: BUSINESS-TO-CONSUMER (B2C) COLLECTIONS DEMAND

IMPORTANT: FDCPA AND STATE LAW COMPLIANCE REQUIRED

[// GUIDANCE: The following template includes required disclosures under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. section 1692 et seq., and CFPB Regulation F, 12 C.F.R. Part 1006. Verify compliance with your state's additional requirements. This template is for use by "debt collectors" as defined under the FDCPA. Original creditors collecting their own debts may not be subject to FDCPA but must comply with state laws.]

[DEBT COLLECTOR NAME]
[ADDRESS LINE 1]
[CITY, STATE ZIP]
Tel: [TELEPHONE]

[DATE]

[CONSUMER NAME]
[ADDRESS LINE 1]
[ADDRESS LINE 2]
[CITY, STATE ZIP]

Account Number: [ACCOUNT NUMBER]

NOTICE OF DEBT AND VALIDATION RIGHTS

Amount of the debt: $[AMOUNT OWED]

Name of the creditor to whom the debt is owed: [CURRENT CREDITOR NAME]

Itemization of the debt:

Itemization Date: [SELECT ONE]
☐ Date of last statement: [DATE]
☐ Charge-off date: [DATE]
☐ Date of last payment: [DATE]
☐ Transaction date: [DATE]

Merchant/Original Creditor (if different): [ORIGINAL CREDITOR NAME]

Account number with original creditor: [ORIGINAL ACCOUNT NUMBER]

YOUR RIGHTS AND PROTECTIONS

THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.

RIGHT TO DISPUTE THE DEBT

If you want to dispute the debt or any part of it, you must send us a written dispute within 30 days of receiving this notice. If you do not dispute the debt within 30 days, we will assume the debt is valid.

If you dispute the debt in writing within 30 days, we will stop collection efforts on the disputed debt until we send you written verification of the debt.

RIGHT TO REQUEST ORIGINAL CREDITOR INFORMATION

If you want the name and address of the original creditor (if different from the current creditor), you must send us a written request within 30 days of receiving this notice.

HOW TO RESPOND

You may use the tear-off form below or send a letter to:

[DEBT COLLECTOR NAME]
[MAILING ADDRESS]
[CITY, STATE ZIP]

PAYMENT OPTIONS

To pay in full: Send payment of $[AMOUNT] to the address above or call [PHONE NUMBER].

To discuss payment arrangements: Call [PHONE NUMBER] between [HOURS] [TIMEZONE], Monday through Friday.

Online payment: [WEBSITE URL, if applicable]

IMPORTANT INFORMATION

☐ Time-Barred Debt Notice (if applicable):
The law limits how long you can be sued on a debt. Because of the age of your debt, [CREDITOR/WE] will not sue you for it. If you do not pay the debt, [CREDITOR/WE] may continue to report it to the credit reporting agencies for the time period permitted by law, and may pursue other lawful collection activity.

[// GUIDANCE: Include above notice ONLY if debt is past statute of limitations. Some states require different disclosures.]

☐ Statute of Limitations Warning (if debt is near expiration):
This debt may be close to the deadline for filing a lawsuit against you. However, depending on your state's law, a new promise to pay, a new agreement, or a partial payment may restart the time period for the filing of a lawsuit.

STATE-SPECIFIC DISCLOSURES

[// GUIDANCE: Insert required state-specific disclosures here. Examples:]

☐ California: "The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before 8 a.m. or after 9 p.m. They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to find out your address, your home phone number, and where you work, but usually may not contact third parties more than once. In most cases, a collector may not contact you at all after receiving written notice that you refuse to pay or want communications to end. A collector may, however, inform you that future efforts are being terminated or that the collector or creditor may invoke specified remedies that are ordinarily invoked by the creditor. For additional information about debt collection activities, you may contact the Federal Trade Commission at 1-877-FTC-HELP or www.ftc.gov."

☐ New York: "Notice is hereby given pursuant to NY General Business Law section 602 that consumer reports may be obtained."

☐ [STATE]: [INSERT REQUIRED STATE DISCLOSURE]

COMMUNICATION PREFERENCES

If you would prefer that we communicate with you in a different manner, please let us know. Under the law, you have the right to:

• Request that we stop contacting you entirely (note: we may still take legal action)
• Request that we only contact you through your attorney
• Request that we not contact you at work
• Designate specific times and methods of contact

NOTICE REGARDING BANKRUPTCY

If you have filed for bankruptcy protection and this debt is included in your bankruptcy case, this notice is for informational purposes only and is not an attempt to collect a debt or to hold you personally liable.

[TEAR-OFF FORM - IF USING PAPER MAILING]

DEBT VALIDATION / DISPUTE FORM

Account Number: [ACCOUNT NUMBER]

Mail to:
[DEBT COLLECTOR NAME]
[ADDRESS]
[CITY, STATE ZIP]

I am writing regarding the debt referenced above. (Check all that apply):

☐ I dispute this debt. I dispute the debt for the following reason(s):
☐ This is not my debt
☐ The amount is wrong
☐ I already paid this debt
☐ I am a victim of identity theft
☐ Other: ________________________________________________

☐ I want you to send me the name and address of the original creditor.

☐ I want you to stop contacting me about this debt.
I understand that if collection stops, the creditor may still be able to sue me to collect.

☐ Contact me only through my attorney:
Attorney Name: ________________________________________
Attorney Address: ______________________________________
Attorney Phone: _______________________________________

☐ Do not contact me at work.
Work phone to remove: _________________________________

Signature: ___________________________ Date: _______________

Name (printed): _____________________________________________

Address: __________________________________________________

Phone: ____________________________________________________

[// GUIDANCE - FDCPA COMPLIANCE CHECKLIST:

☐ Sent within 5 days of initial communication (if this is validation notice)
☐ Amount of debt stated
☐ Name of creditor stated
☐ Statement that debt will be assumed valid if not disputed within 30 days
☐ Statement that verification will be provided if debt is disputed in writing within 30 days
☐ Statement that name and address of original creditor will be provided if requested within 30 days
☐ "Mini-Miranda" warning included
☐ No false, deceptive, or misleading representations
☐ No harassment or abuse language
☐ Complies with Regulation F itemization requirements
☐ State-specific disclosures included
☐ If debt is time-barred, appropriate disclosure included
☐ Not threatening suit if statute of limitations has expired

RECORDKEEPING:
☐ Retain copy of this letter for 3 years after last collection activity
☐ Document date and method of mailing
☐ Track any disputes or validation requests
]

LEGAL DISCLAIMER (FOR BOTH B2B AND B2C)

[// FINAL GUIDANCE:

1. B2B COLLECTIONS: The FDCPA generally does not apply to business debts. However, some states have laws that apply to commercial collections. Always verify applicable state law.

2. B2C COLLECTIONS: The FDCPA applies to "debt collectors" collecting "consumer debts." Original creditors are generally not subject to FDCPA but must comply with state laws (e.g., California's Rosenthal Act covers original creditors).

3. LITIGATION: Before threatening litigation, verify:
   - Statute of limitations has not expired
   - You have proper documentation to prove the debt
   - Venue is proper
   - No bankruptcy stay applies

4. INTEREST AND FEES: Only charge interest and fees permitted by the contract or statute. Usury laws may apply.

5. CREDIT REPORTING: Comply with Fair Credit Reporting Act (FCRA) requirements if reporting to credit bureaus.

6. STATE LICENSING: Many states require debt collectors to be licensed. Verify licensing requirements before engaging in collection activity.
   ]