Letter of Demand: What to do if someone ignores it?
What is a letter of demand?
A letter of demand—often called a final notice—is a serious step taken before escalating to legal action. Typically sent by a creditor, their solicitor, or a debt collection agency, it serves as a firm request to settle an outstanding debt. In plain terms: pay up, or the creditor may take you to court.
Can someone ignore a letter of demand?
Yes, technically. But if your initial letter of demand gets ignored, it’s smart to send a final demand notice. This short, to-the-point letter attaches your previous correspondence and gives the recipient a clear seven days to respond or take action.
Your first letter might have been missed, overlooked, or buried under paperwork. A final demand notice can serve as a wake-up call and help you resolve the issue without the added time and costs of going to court.
What remedies do I have if someone ignores a letter of demand?
If your final notice has been sent and still no response has been received, it may be time to take the next step: filing court proceedings. While this can feel like a significant escalation, it’s often the necessary move to demonstrate that you are serious about recovering the debt or resolving the issue.
Key takeaways
- A letter of demand is a formal request to settle a debt before escalating to legal action—essentially a warning to pay up or face court.
- If ignored, send a final demand notice with a clear seven-day deadline. It’s a simple step that can avoid costly court proceedings.
- If the final notice is still ignored, filing court proceedings is often the next necessary action to recover the debt.
Gladwin Legal are experts in Disputes and have extensive experience in advising businesses. If you require assistance in understanding your legal obligations please contact us at or 1300 033 934.