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]:

This firm represents [CREDITOR NAME] regarding your outstanding account. This constitutes FINAL DEMAND FOR PAYMENT before legal action.

I. STATEMENT OF ACCOUNT

II. CALIFORNIA LAW PROVISIONS

Interest Rate: Under California Constitution Article XV, Section 1, the legal rate of interest is 10% per annum when no rate is specified by contract. Higher rates may be agreed in writing for certain transactions.

Attorney Fees: Under California Civil Code section 1717, if the contract contains an attorney fee provision, it is reciprocal. Prevailing party will recover fees.

Statute of Limitations: Written contracts: 4 years (CCP 337); Oral contracts: 2 years (CCP 339).

Post-Judgment Collection Remedies:
- Wage garnishment: Lesser of 25% of disposable earnings or amount exceeding 40x California minimum wage (CCP 706.050)
- Bank levy
- Till tap orders (CCP 700.140)
- Real property liens
- Keeper orders
- Assignment orders

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

Failure to pay will result in immediate lawsuit in California Superior Court or federal court seeking:
1. Principal debt
2. Prejudgment interest at 10%
3. Attorney fees (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

FDCPA AND CALIFORNIA ROSENTHAL ACT COMPLIANCE REQUIRED

IMPORTANT: California's Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code section 1788 et seq.) applies to BOTH original creditors AND third-party debt collectors, unlike the federal FDCPA which only applies to third-party collectors.

[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]

Itemization of the debt:

Original Creditor (if different): [ORIGINAL CREDITOR]

YOUR RIGHTS UNDER FEDERAL AND CALIFORNIA LAW

Federal Rights (FDCPA)

Dispute and Verification Rights: If you dispute this debt or any portion of it in writing within 30 days of receiving this notice, we will obtain verification of the debt and mail it to you. If you do not dispute the debt within 30 days, we will assume the debt is valid.

Original Creditor Information: If you request the name and address of the original creditor in writing within 30 days, we will provide that information if it 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
• Right to sue for actual damages, statutory damages up to $1,000, and attorney fees

As required by California Civil Code section 1788.52:

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.

CALIFORNIA EXEMPTIONS FROM EXECUTION

Under California law, certain property is exempt from collection:

• Homestead: $300,000-$600,000 depending on county (CCP 704.730)
• Personal Property: Various exemptions (CCP 704.010-704.210)
• Wages: 75% of disposable earnings protected
• Retirement Accounts: Generally fully exempt
• Public Benefits: Fully exempt

STATUTE OF LIMITATIONS NOTICES

☐ 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, we will not sue you for it. If you make a payment on the debt, the statute of limitations may start over.

☐ Near Time-Barred Notice (if within 1 year of expiration):
This debt may be close to the deadline for filing a lawsuit. Under California law, a new promise to pay, a new agreement, or a partial payment may restart the time period.

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]

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

☐ I request verification of the debt.

☐ I request the name and address of the original creditor.

☐ I request that you stop contacting me. I understand you may still take legal action.

☐ Contact me only through my attorney:
Attorney Name: ________________________________________
Address: ______________________________________________
Phone: ________________________________________________

☐ Do not contact me at work.

Signature: _______________________ Date: _______________

Printed Name: _____________________________________________

[// CALIFORNIA COMPLIANCE CHECKLIST:

☐ Rosenthal Act disclosure included (Civ. Code 1788.52)
☐ FDCPA validation notice included
☐ Mini-Miranda warning included
☐ Not threatening suit if debt is time-barred
☐ If debt is time-barred, appropriate disclosure included
☐ Not contacting consumer at work if prohibited
☐ Not contacting before 8 a.m. or after 9 p.m.
☐ No false, deceptive, or misleading statements
☐ Recordkeeping maintained per Regulation F

NOTE: California applies the Rosenthal Act to original creditors, not just third-party collectors. Even original creditors must comply with these requirements when collecting consumer debts in California.
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