What’s a Legal Demand / Notice?
A Legal Demand is the first contact by a law office with the debtor.
It lets the debtor know that the law firm has been retained (hired) by the
creditor to take action to collect an outstanding debt.
It will typically state the amount due and sometimes, if the debt stems from some
type of damages, briefly describe what the circumstances were that gave rise to the debt.
Other features of the demand letter, are letting them know that interest, legal and court
costs will be added to the balance and lastly, it gives them a deadline, usually 7 days, in which the recipient of the letter is asked to take steps to rectify the situation before legal action is taken.
What does a legal demand / notice do and what are the benefits if any?
In and of itself it has no legal force but it accomplishes a number of things.
First, it lets the other party know that you have legal representation. In a situation where you are being ignored and not getting paid this is an effective way of getting their attention.
Second, it puts them on notice that they better do something “or else” as the expression goes.
Third it injects another party into the situation so that you know longer have to deal with a stressful situation. It also allows for the calming of any tensions that might have built up.
Fourth and perhaps most important, it may get you paid without further legal expense.