Collections Demand Letter - California

COLLECTIONS DEMAND LETTER

State of California

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

[LAW FIRM NAME / CREDITOR NAME]
[ADDRESS]
[CITY], California [ZIP]
Tel: [TELEPHONE]
State Bar of California No. [BAR NUMBER]

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[DATE]

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

Re: DEMAND FOR PAYMENT - PAST DUE ACCOUNT
Account Number: [NUMBER]
Creditor: [CREDITOR NAME]
Total Amount Due: $[TOTAL]
Days Past Due: [NUMBER]

Dear [RECIPIENT NAME]:

[SENDER IS COUNSEL: This firm represents [CREDITOR NAME]. / SENDER IS CREDITOR: We are [CREDITOR NAME].] We write regarding your outstanding account. This is a demand for payment before we consider legal action.

I. STATEMENT OF ACCOUNT

II. CALIFORNIA LAW PROVISIONS

Interest Rate: The constitutional default is 7%, including for accounts after demand. Civil Code section 3289(b) can instead supply 10% after breach for a contract entered into after January 1, 1986 that does not stipulate a legal rate; that subdivision excludes a note secured by a deed of trust on real property. Confirm the transaction, applicable rate, and accrual date before adding interest.

Attorney Fees: California Civil Code section 1717 can make a contractual attorney-fee provision reciprocal in an action on the contract. Any fee request depends on the clause, the claims, prevailing-party status, and the court's determination of a reasonable amount.

Statute of Limitations: An action on an obligation founded on a written instrument generally has 4 years under CCP 337(a); one not founded on a writing generally has 2 years under CCP 339(1). Confirm the cause of action, accrual date, exceptions, and any applicable tolling before threatening suit.

Collection-law check: Before using this section for an obligation owed by a natural person for business financing, assess California's covered-commercial-debt rules. They can cover a natural-person guarantor of qualifying commercial credit, subject to the $500,000 aggregate limit and exclusions such as trade credit. The commercial-debt provisions apply to covered transactions entered into, renewed, sold, or assigned on or after July 1, 2025. Confirm the debtor, creditor, amount, transaction date, and exclusions with counsel.

III. DEMAND

Pay $[TOTAL] within [15/30] calendar days by:

Check: [PAYEE NAME], [ADDRESS]

Wire Transfer:
Bank: [BANK]
Routing: [NUMBER]
Account: [NUMBER]
Reference: [ACCOUNT NUMBER]

IV. CONSEQUENCES OF NON-PAYMENT

If payment is not made, the creditor may consider a lawsuit in a court with jurisdiction, subject to the contract, applicable limitations period, and collection law, seeking any amounts legally recoverable:

1. Principal debt
2. Prejudgment interest at the applicable documented rate
3. Attorney fees, if available under the contract and applicable law (Cal. Civ. Code section 1717)
4. Costs of suit
5. Post-judgment enforcement

[LAW FIRM NAME]

By: _______________________________
[NAME]
State Bar of California No. [NUMBER]

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

Federal coverage check: Use the FDCPA and Regulation F validation language below only after confirming the sender is a covered debt collector, the recipient is a consumer, and the obligation is a covered debt under 15 U.S.C. § 1692a. Analyze California Rosenthal coverage separately.

CHECK FDCPA AND CALIFORNIA ROSENTHAL ACT COVERAGE

IMPORTANT: Federal FDCPA and California Rosenthal Act coverage differ. Confirm whether this sender and obligation are covered under each law before sending this form.

[DEBT COLLECTOR/CREDITOR NAME]
[ADDRESS]
[CITY], California [ZIP]
Tel: [TELEPHONE]

[DATE]

[CONSUMER NAME]
[ADDRESS]
[CITY], California [ZIP]

Account Number: [NUMBER]

NOTICE OF DEBT AND VALIDATION RIGHTS

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

Amount of the debt: $[AMOUNT]

Name of the creditor: [CREDITOR NAME]

Creditor to whom the debt was owed on the itemization date (when required by 12 C.F.R. § 1006.34(c)(2)(iii)): [NAME]

Account number associated with the debt on the itemization date (masked as permitted): [NUMBER]

Selected itemization date: [DATE; identify the permissible event under § 1006.34(b)(3)]

Amount of the debt on the itemization date: $[AMOUNT]

Itemization since that date:

Original Creditor (if different): [ORIGINAL CREDITOR]

For a debt related to a consumer financial product or service, more information about debt-collection protections is available at www.cfpb.gov/debt-collection. If this notice is sent electronically, state how the consumer can submit a dispute and original-creditor request electronically: [EMAIL OR PORTAL AND INSTRUCTIONS].

Validation period end date stated in this notice: [__/__/____]

YOUR RIGHTS UNDER FEDERAL AND CALIFORNIA LAW

Federal Rights (FDCPA)

Dispute and Verification Rights: You may contact us on or before [VALIDATION PERIOD END DATE] to dispute this debt or any portion of it. If you do not contact us to dispute by that date, the debt collector will assume the debt is valid; failure to dispute is not an admission of liability in court. If you notify us in writing on or before that date that the debt or any portion is disputed, we must stop collection of the disputed amount until we send you verification of the debt or a copy of a judgment.

Original Creditor Information: If you request in writing on or before [VALIDATION PERIOD END DATE] the name and address of the original creditor, we must stop collection until we send that information if the original creditor differs from the current creditor.

California Rights (Rosenthal Act)

The California Rosenthal Fair Debt Collection Practices Act (Civil Code section 1788 et seq.) provides additional protections, including:

• Prohibition on harassment, oppression, or abuse
• Prohibition on false, deceptive, or misleading representations
• Prohibition on unfair practices
• In an individual action, actual damages for a proven violation; a court-set $100–$1,000 additional penalty for a willful and knowing violation; and reasonable attorney fees for a prevailing debtor, subject to the statute's conditions and defenses

STATUTE OF LIMITATIONS NOTICES

Determine whether the debt is time-barred before threatening or filing suit. If this is a written attempt to collect a time-barred covered debt, insert the applicable exact notice from Cal. Civ. Code § 1788.14(d)(1) or (2) before sending it; the choice depends on the federal credit-reporting obsolescence date. Do not use an assumed restart rule or deadline without checking the account facts and current law.

PAYMENT OPTIONS

To pay in full: Send payment to the address above.

To discuss payment arrangements: Call [PHONE NUMBER] between [HOURS].

HOW TO RESPOND

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

DISPUTE / VALIDATION REQUEST FORM

Account Number: [NUMBER]

How do you want to respond? Check all that apply:

☐ I want to dispute the debt because I think:

☐ This is not my debt. ☐ The amount is wrong. ☐ Other (describe on reverse or attach details): [DETAILS]

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

From (consumer): [NAME AND MAILING ADDRESS]

To (debt collector's dispute/original-creditor address): [NAME AND MAILING ADDRESS]