There is a great spirit of commerce in which companies and individuals trade goods and services for money and everyone gets what they want from each exchange. In many cases, a trade is started in good faith, where a product or service is provided trusting that the customer will pay at the correct moment, and it's always frustrating to discover that you have been dealing with a fraud. Your demand letter is the formal introduction of intended legal action against a debtor and while you can write it yourself, there are some very good reasons to get your attorney involved at this stage in the process.
1. Clear and Intentional Wording
As many as one-third of all disputes can be settled at the demand letter stage without any further necessary action. By writing the letter, you are officially informing your debtor of your grievance, legitimate claim to payment, and intention to be paid through legal action if necessary. This letter can either trigger a settlement or be used as clear evidence of the fraudulent party's knowledge of your grievance. Your attorney can help make sure the letter is professionally worded and legally admissible should the issue go to court.
2. The Legal Letterhead
In most cases, neither you or your debtor actually want to go to court. By printing your demand letter on the law firm's letterhead, you make your connection with an attorney clear from the very beginning. This can be taken as a clear indication that you intend to sue if the notice is ignored and often inspires or frightens your debtor into settling their account rather than enter a court room.
3. Planning for Collection
If you do have to sue for payment, the entire interaction between your company and the other party will be examined, including your demand letter. When the letter has been written by or with your attorney, you can be sure that it will hold up to all the rigors of examination as professional, impersonal, and clear proof of stated intention to be paid for services rendered.
If you are currently facing the problem of clients with unsettled accounts and are about to write your demand letters, consider consulting a local debt collection lawyer to make sure you start off on the right foot. Don't have a debt collection lawyer yet? Jake Posey, managing shareholder of The Posey Law Firm will be happy to help you with your demand letter or help you find an attorney in your area. For more information, contact us today.
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