Informal Demand Letter Template for England and Wales

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Key Requirements PROMPT example:

Informal Demand Letter

"I need to draft an Informal Demand Letter to collect an unpaid invoice of £5,000 from a construction contractor who hasn't responded to our previous three emails, with a final payment deadline of March 15, 2025."

Document background
The Informal Demand Letter is commonly used as an initial step in debt recovery within England and Wales, before escalating to more formal legal proceedings. It provides a clear record of attempt to resolve the matter amicably while preserving legal rights. The document typically includes details of the debt, payment history, and a reasonable timeframe for response or payment. This approach aligns with court expectations for reasonable attempts at resolution before litigation, while maintaining professional relationships where possible.
Suggested Sections

1. Recipient Details: Full name and address of the recipient

2. Date: Current date of the letter

3. Reference: Any relevant reference numbers or identifiers

4. Debt Details: Clear statement of the amount owed and its origin

5. Payment History: Summary of previous payments or payment attempts

6. Demand: Clear statement of what is being demanded and by when

7. Payment Instructions: How and where to make the payment

Optional Sections

1. Interest Calculation: Details of any interest applied, used when claiming statutory or contractual interest

2. Previous Correspondence: Reference to prior communications, used when following up on earlier contact

3. Legal Consequences: Outline of potential legal action, used when escalating the matter

4. Settlement Offers: Any proposed settlement terms, used when willing to negotiate or compromise

Suggested Schedules

1. Invoice Copies: Copies of relevant unpaid invoices showing amounts owed

2. Contract Extract: Relevant sections of the underlying contract supporting the claim

3. Statement of Account: Detailed breakdown of the debt including dates and amounts

4. Payment History: Comprehensive record of previous payments and payment attempts

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Limitation Act 1980: Primary legislation governing time limits for bringing legal claims. Sets limitation periods (generally 6 years for contract and tort claims). Essential to verify that the claim isn't time-barred before sending a demand letter.

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing business-to-business debts, including statutory interest rates and compensation for late payment. Relevant when drafting payment demands between commercial entities.

Consumer Rights Act 2015: Key legislation for consumer disputes, covering fair terms and conditions and consumer protection requirements. Must be considered if the demand letter involves a consumer-related matter.

Civil Procedure Rules - Pre-Action Protocols: Procedural requirements for actions before court proceedings, including duty to exchange information and consider alternative dispute resolution. Essential for ensuring the demand letter meets pre-litigation requirements.

Defamation Act 2013: Legislation governing statements that could harm reputation. Important to consider to avoid making potentially defamatory statements in the demand letter.

Data Protection Act 2018 and UK GDPR: Legislation governing handling of personal information and privacy requirements. Must be considered when including personal information in demand letters.

Contract Law Principles: Common law principles governing formation and enforcement of contracts. Essential for ensuring the underlying claim in the demand letter is legally valid and properly substantiated.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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