Collections Demand Letter - Arkansas

COLLECTIONS DEMAND LETTER

State of Arkansas

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

[LAW FIRM NAME / CREDITOR NAME]
[ADDRESS]
[CITY], Arkansas [ZIP]
Tel: [TELEPHONE]

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[DATE]

[DEBTOR COMPANY NAME]
[ADDRESS]
[CITY, STATE ZIP]

Re: DEMAND FOR PAYMENT
Account Number: [NUMBER]
Total Amount Due: $[TOTAL]

Dear [RECIPIENT NAME]:

This constitutes FINAL DEMAND FOR PAYMENT before legal action.

I. STATEMENT OF ACCOUNT

II. ARKANSAS LAW

Interest: State the agreed written rate and the basis for any interest claimed. Arkansas Constitution Amendment 89, § 3 caps interest on loans or contracts outside its governmental and federally insured depository institution provisions at 17% per year. Section 4-57-104 allows a written agreement for interest up to the applicable constitutional limit; it does not itself set a 6% default rate.

Statute of Limitations: 5 years (Ark. Code Ann. section 16-56-111).

III. DEMAND

Pay $[TOTAL] within [15/30] days.

[LAW FIRM NAME]

By: _______________________________
[NAME]

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

REGULATION F GATE: This section is for a "debt collector" subject to the federal Fair Debt Collection Practices Act and 12 C.F.R. part 1006. An original creditor collecting its own debt is not automatically a covered debt collector. Confirm coverage before use. The safest route is to complete and attach the CFPB's current Model Form B-1 validation notice; use that form's wording and layout rather than the legacy summary below.

1. Parties and Mailing Information

Debt-collector disclosure: This is an attempt to collect a debt and any information obtained will be used for that purpose.

2. Debt Itemization

Select one permitted itemization date and identify it on the validation notice.

3. Validation Period and Required Statements

Validation-period end date: [MM/DD/YYYY]

Under 12 C.F.R. § 1006.34, the notice must clearly state, using the current rule or Model Form B-1 wording, that:

• if the consumer notifies the debt collector in writing on or before the stated end date that all or part of the debt is disputed, the collector must cease collection of the disputed amount until it sends verification or a copy of a judgment;
• if the consumer requests in writing on or before that date the name and address of the original creditor, the collector must cease collection until it sends that information, if the original creditor differs from the current creditor; and
• unless the consumer contacts the collector to dispute all or part of the debt on or before that date, the collector will assume the debt is valid.

For covered consumer-financial-product debt, include the current CFPB consumer-protection website statement required by § 1006.34(c)(3)(iv).

4. Consumer Response Area

The notice must provide the segregated response prompts required by § 1006.34(c)(4), including substantially the following choices:

• ☐ I want to dispute the debt because I think this is not my debt.
• ☐ I want to dispute the debt because I think the amount is wrong.
• ☐ I want to dispute the debt for another reason: [____________________________].
• ☐ I want the name and address of the original creditor.

Include the consumer's and debt collector's mailing addresses in the response area. Do not replace these requirements with the legacy bullets "dispute within 30 days" or "request original creditor information."

A request to stop communications is a separate FDCPA right and is not a substitute for the validation information or response prompts. Do not add unverified Arkansas exemption summaries to the validation notice.

Official federal sources:

• CFPB Regulation F, 12 C.F.R. § 1006.34: https://www.consumerfinance.gov/rules-policy/regulations/1006/34/
• CFPB Model Form B-1: https://www.consumerfinance.gov/rules-policy/regulations/1006/b/#1
• CFPB validation-notice guidance: https://www.consumerfinance.gov/ask-cfpb/what-information-does-a-debt-collector-have-to-give-me-about-the-debt-en-331/