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Frequently Asked QuestionsWhat is a "Debt Owed" Demand Letter?This demand letter should be used when one or more creditors are seeking to collect a debt which is past due from one or more debtors. This letter outlines the amount of the debt, and also provides a description of the transaction creating the debt. Immediate payment of the debt can be demanded, or a settlement may be proposed to resolve the matter without involving litigation. The debtor is advised of the potential legal consequences for failing to adhere to this demand letter.What is an "Action Required" Demand Letter?This demand letter should be used when one or more people require a certain action be performed by one or more people. This letter outlines the action to be performed by the recipients of this letter. Documentation may be provided to explain and backup this demand. The recipients of this letter are advised of the potential legal consequences for failing to adhere to this demand letter.What is an "Insurance Claim" Demand Letter?This demand letter should be used when an accident victim is trying to reach a settlement with an insurance company. The letter outlines the claim information, including details of the incident such as injuries and expenses. It also asks for a final settlement amount within a specified deadline in exchange for the victim's right to sue. It advises the insurer that if they do not reach a settlement, the claimant will pursue their claim in court.What is an "NSF Cheque" Demand Letter?This demand letter should be used when a cheque written by a debtor is bounced by the debtor's bank due to insufficient funds or the account being closed. This letter outlines the cheque details (number, date and payment amount) and explains why the bank bounced the cheque. The debtor is advised to pay the amount of the cheque plus bank and mailing costs, in order to avoid legal proceedings.What is a "Stop Payment" Demand Letter?This demand letter should be used when a person owing money to a creditor makes payment in the form of a cheque, but then later instructs the bank to stop the cheque. The creditor can use this demand letter to secure payment of the debt, plus bank and mailing fees. This letter advises the debtor of the legal consequences for failing to adhere to this demand letter. It also urges the debtor to resolve the debt with the creditor, if the debtor believes he/she has a good faith dispute.