Letter of Demand for Unpaid Invoice(s) | Outstanding Payment Letter

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Debts can arise in many forms, from unpaid bills to unfulfilled promises. Regardless of the cause, a Letter of Demand is an effective way of resolving these debts in South Africa. It is a formal request for payment that serves as a reminder and warning to the recipient of the consequences of non-payment.

Why You Need a Letter of Demand

A Letter of Demand can be a powerful tool for debt recovery. It communicates your intentions clearly and provides a written record of your attempts to resolve the issue. It also serves as evidence in court, should legal action be necessary.

Furthermore, the recipient of the letter is made aware of their legal obligation to pay the debt, and of the consequences of non-payment. The letter puts pressure on the recipient to resolve the issue and avoid further legal action.

When Do You Need a Letter of Demand?

A Letter of Demand should be sent when a debt has become overdue and the recipient has failed to respond to verbal or informal requests for payment. It is a final attempt to resolve the issue before resorting to legal action.

Legal Requirements for a Letter of Demand in South Africa

In South Africa, a Letter of Demand is not a legal requirement, but it is advisable to send one as a final attempt to resolve the issue before taking legal action. The letter must comply with the requirements of the National Credit Act, which regulates debt collection practices in South Africa.

The letter must be written in clear, concise language, and must include specific details such as the amount owed, the date the debt became payable, and the date by which payment must be made.

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Barter McKellar Law

This document is supplied by Barter McKellar Law.

Barter McKellar is a boutique law firm which offers bespoke legal solutions that make legal, personal and business sense. We practice law because we thrive off solving legal problems (simple or complex) and providing our clients with peace of mind. No matter what your legal needs are, we are able to assist you as a trusted legal partner. We pride ourselves on giving our clients the best legal advice and legal solutions that make practical and commercial sense. We give you the tools and guidance that you need to help you and your business grow and our services and fees are tailored to suit your specific needs