Free Demand for Money Owed

This letter can be used by an individual or business to demand payment of a debt or money owed. The easy interview process will even add calculate interest or add fees for late payment.

Use the Demand for Money Owed document if:

You want to make a written demand for money owed.

Related Help Articles	Related Documents	More Information
How to Place a Lien on a House or Other Personal Property Sometimes, a debtor simply won't pay. This doesn't mean you're left out in the rain, however. Liens are the best legal way to assert rights over a debtor's property. Read up for useful information about how you can file a lien on a debtor's house or other personal property. Read more How to Collect Personal Debt from a Friend, Family Member, or a Business Many of us think of debt collection as something that only businesses and contractors have to deal with. But of course, this simply isn't the case. Sometimes, individuals make loans, be they to businesses or other people, and have trouble securing repayment. Read more Collecting Your Judgment If you win your small claims lawsuit, you are legally entitled to your monetary award, but collecting your judgment isn't always easy. Because the court won't handle collection for you, it can be very challenging to recover your money. Before you sue, ask yourself whether the... Read more
Request for Monthly Bank Statements The purpose of this letter is to allow you an opportunity to examine your bank account statements for possible fraudulent activity. Generally, you should have already received copies of your bank statements, but you may have destroyed them or misplaced them before becoming aware of the possibility of fraudulent activity. Read more Bad Check Notice Use this letter to provide written notice that a check has not been honored by the bank and to demand payment by the check writer. Read more 60-Day Past Due Letter This letter can be used to make a second demand for payment of money that is owed. Read more
Calculating Accrued Interest Contact Information Contacting Attorney General's Offices Demand for Money Owed Letter Fair Debt Collection Practices Act Setting a Payment Due Date Signing Instructions Threat of Legal Action Time Allowed for Repayment Calculating Accrued Interest The following example illustrates how to calculate "accrued interest" for the Demand for Money Owed letter. Assume the following facts: The debtor owes you $5,000.00 on an account or note that had an original balance of $8,000.00. The amount owed bears interest at an annual rate of 12 percent. Interest is owed from January 15, 1998. The current date (or other specified date) is May 17, 1998. You must determine the accrued interest through the current (or specified) date. You must also determine the amount of interest that will be owed for each additional day after the specified date that the debt remains unpaid. Determining the Accrued Interest Amount To determine the accrued interest amount, you must enter the beginning and ending dates and the interest rate. (The "ending date" chosen is usually the date of the letter, chosen in order to be able to advise the debtor of the current amount demanded.) The program will then do the following: Calculate the days from January 15 through May 17. (16 + 28 + 31 + 30 + 17 = 122) The interest rate of 12 percent becomes the decimal figure 0.12. The accrued interest amount is $200.55, based on this calculation: $5,000.00 x 0.12 x 122/365 = $200.55. The program calculates the daily accrual of interest as follows: It calculates the annual amount of interest: $5,000.00 x 0.12 = 600.00. It divides the annual amount of interest by 365 to obtain the daily accrual amount: $600.00/365 = $1.64. Contact Information The recipient of this letter may have questions about some of the information that you have provided or may require additional information. Therefore, your letter should explain how you prefer to be contacted. Contacting Attorney General's Offices Letters to the Attorney General (or other appropriate office) should be sent to the address listed below for your state. Alabama Office of Attorney General Consumer Assistance 11 South Union Montgomery, AL 36130 Alaska Department of Law Office of Attorney General Capitol Building, P. O. Box 110300 Juneau, AK 99811 American Samoa Consumer Protection Bureau Office of Attorney General American Samoa Government P.O. Box 7 Pago Pago, AS 96799 Arizona Office of Attorney General Consumer Information and Complaints 1275 W. Washington St. Phoenix, AZ 85007 Arkansas Office of Attorney General Consumer Protection Division 200 Tower Building 323 Center Street Little Rock, AR 72201 California Office of Attorney General Public Inquiry Unit 1300 I Street Sacramento, CA 95814 Colorado Office of Attorney General Consumer Protection Unit 1525 Sherman St., 5th Floor Denver, CO 80203 Connecticut Department of Consumer Protection 165 Capitol Avenue Hartford, CT 06106 Delaware Department of Justice Consumer Protection Unit 820 North French Street 4th Floor Wilmington, DE 19801 District of Columbia Dept. of Consumer and Regulatory Affairs 614 H Street NW, Room 1120 Washington, DC 20001 Florida Office of Attorney General Consumer Protection Division State of Florida The Capitol PL 01 Tallahassee, FL 32399 Georgia Office of Attorney General Consumer Affairs Division 40 Capitol Square SW Atlanta, GA 30334-1300 Guam Department of Law Office of Attorney General Suite 2-200 E Guam Judical Center 129 West O'Brien Drive Agana, GU 96910 Hawaii Office of Attorney General 425 Queen Street Honolulu, HI 96813 Idaho Office of Attorney General Consumer Protection Division 700 W. Jefferson Street P.O. Box 83720 Boise, ID 83720-1000 Illinois Office of Attorney General Consumer Protection Division 100 W. Randolph Street Chicago, IL 60601 Indiana Office of Attorney General Consumer Protection Division 5th Floor 402 West Washington Indianapolis, IN 46204-2770 Iowa Office of Attorney General Consumer Protection Division Hoover Building Des Moines, IA 50319 Kansas Office of Attorney General Consumer Protection Division Kansas Judicial Ctr., 2nd Floor Topeka, KS 66612 Kentucky Office of Attorney General Consumer Protection Division State Capitol #116 P.O. Box 2000 Frankfort, KY 40602-2000 Louisiana Office of Attorney General Consumer Protection Division P.O. Box 94095 Baton Rouge, LA 70804-9095 Maine Office of Attorney General Public Protection Unit State House Station 6 Augusta, ME 04333 Mariana Islands Office of Attorney General Commonwealth of the North Mariana Islands Saipan, MP 96950 Maryland Office of Attorney General Consumer Protection Division 200 St. Paul Place, 16th Floor Baltimore, MD 21202-2022 Massachusetts Office of Attorney General Consumer Complaint and Information Section One Ashburn Place Boston, MA 02108-1698 Michigan Office of Attorney General Consumer Protection Division P.O. Box 30213 525 West Ottawa Street Lansing, MI 48909-0212 Minnesota Office of Attorney General Consumer Mediation Services 1400 NCL Tower 445 Minnesota Street St. Paul, MN 55101 Mississippi Office of Attorney General Consumer Protection Division P.O. Box 22947 Jackson, MS 39225-2947 Missouri Office of Attorney General Consumer Protection Division P.O. Box 899 Jefferson City, MO 65102 Montana Department of Commerce Consumer Affairs Unit 1424 9th Avenue P.O. Box 200501 Helena, MT 59620-0501 Nebraska Office of Attorney General Consumer Protection Division 2115 State Capitol, P.O. Box 98920 Lincoln, NE 68509-8920 Nevada Office of Attorney General Consumer Affairs Division 4600 Kietzke Lane, B-113 Reno, NV 89502 New Hampshire Department of Justice Consumer Protection Bureau 33 Capitol Street Concord, NH 03301-6397 New Jersey Consumer Protection Office P.O. Box 45204 Newark, NJ 07101 New Mexico Office of Attorney General Consumer Protection Division P.O. Drawer 1508 Santa Fe, NM 87504 New York Office of Attorney General Bureau of Consumer Frauds and Protections State Capitol Albany, NY 12224 North Carolina Office of Attorney General Consumer Protection Section Department of Justice P.O. Box 629 Raleigh, NC 27602 North Dakota Office of Attorney General Consumer Protection Division 600 East Boulevard Bismark, ND 58505-0040 Ohio Office of Attorney General Consumer Protection Division State Office Tower 30 East Broad Street Columbus, OH 43266-0410 Oklahoma Office of Attorney General Consumer Affairs Division 2300 N. Lincoln Blvd. Oklahoma City, OK 73105-3498 Oregon Department of Justice Financial Fraud Division 1162 Court Street NE Salem, OR 97310 Pennsylvania Office of Attorney General Bureau of Consumer Protection Strawberry Sq., 14th Floor Harrisburg, PA 17120 Puerto Rico Consumer Affairs Office of Attorney General P.O. Box 41059 Minilla Station Santurce, PR 00940-1059 Rhode Island Office of Attorney General Consumer Protection Division 150 South Main Street Providence, RI 02903 South Carolina Office of Attorney General Department of Consumer Affairs 1101 Williams Street Columbia, SC 29211 South Dakota Office of Attorney General Division of Consumer Affairs State Capitol Building 500 East Capitol Pierre, SD 57501 Tennessee Office of Attorney General Consumer Protection Division 500 Charlotte Avenue Nashville, TN 37243-0600 Texas Office of Attorney General Consumer Protection Division P.O. Box 12548 Austin, TX 78711 Utah Office of Attorney General Consumer Rights Division 236 State Capitol Salt Lake City, UT 84114 Vermont Office of Attorney General Consumer Assistance 109 State Street Montpelier, VT 05609-1001 Virgin Islands Office of Attorney General Gers Complex, 2nd Floor 48B-50C Kronprindsensgade St. Thomas, VI 00802 Virginia Office of Attorney General Anti-Trust and Consumer Litigation Section 900 East Main Street Richmond, VA 23219 Washington Office of Attorney General Consumer and Business Fair Practices Division 905 Plum Street P.O. Box 40118 Olympia, WA 98504-0118 West Virginia Office of Attorney General Consumer Protection Division 1900 Kanawha Blvd. E., Building 1 Charleston, WV 25305-0220 and/or West Virginia Legal Services Plan, Inc. 922 Quarrier Street Charleston, WV 25301 Wisconsin Department of Agriculture Trade and Consumer Protection Consumer Protection Bureau 2811 Agriculture Drive P.O. Box 8911 Madison, WI 53707 Wyoming Office of Attorney General Consumer Protection Division 123 State Capitol Bldg. Cheyenne, WY 82002 Demand for Money Owed Letter The only permissible purpose of the Demand for Money Owed letter is for a creditor to collect debts owed to that creditor. The person preparing and signing this letter MUST be the person claiming the amount of money owed or be an employee or representative of the business claiming the money owed. If the letter is not prepared for this purpose, you may be required to comply with the stringent requirements of the Fair Debt Collection Practices Act. Furthermore, your state may have its own collection requirements which must be considered. Contact your state's attorney general's office or a lawyer for additional information. Fair Debt Collection Practices Act The Fair Debt Collection Practices Act governs the collection of "consumer debt" (defined to include any personal, family, or household debt) by the following types of "Debt Collectors": Any person in the business of collecting debts. Any creditor who collects debts using a name other than his or her own. Anyone who collects or tries to collect debts for another person. The Act does NOT apply to individuals, banks, or businesses that collect their own debts using their own names. However, if there is any doubt about whether the Fair Debt Collection Practices Act applies, consult an attorney. This general overview of the scope of the Fair Debt Collection Practices Act is only a rough description and is not a substitute for competent legal advice. Collecting Money for Others If this letter is being prepared to collect money owed to someone else, you should consult a lawyer to determine whether or not you qualify for one of the exceptions under the Fair Debt Collection Practices Act and whether you satisfy your state's requirements for debt collection. Non-Compliance with the Fair Debt Collection Practices Act If a Debt Collector does not comply with the Fair Debt Collection Practices Act, the debtor may sue the Debt Collector within one year after the violation. It may be possible for the debtor to recover actual damages plus additional damages up to $1,000, court costs, and reasonable lawyer's fees. Contacting the Debtor A Debt Collector CANNOT do the following: Contact the debtor before 8 a.m. or after 9 p.m. Contact the debtor at unusual places. Contact the debtor at the place of employment if it is known that the employer prohibits such contact. Harass or abuse the debtor. This includes, but is not limited to: Using or threatening violence or harm to the person, the person's reputation, or property; Using obscene language; Publicizing the debt; Making annoying, repetitive, or anonymous phone calls; Providing false or misleading information as to the collector's identity; Collecting an additional fee not authorized by law or by the terms of the debt agreement; Charging the debtor with collect calls or telegram fees; Communicating by postcard. During a period when the debt is being verified, the collector may not ask for payment. A Debt Collector may not contact a person other than the debtor EXCEPT for the purpose of locating the debtor. In doing so, the Debt Collector must do the following: Identify himself or herself. Not reveal the consumer's debt. Not use a postcard or any other means that might reveal the debt-collection activity. Not contact the person more than once unless absolutely necessary. If the debt collector learns the identity of a lawyer who is representing the debtor, all future contact must be with that lawyer. Following Up with Written Correspondence Within five days after contacting a debtor, the Debt Collector must send a written letter that includes the following information: The amount of the debt. The name of the creditor. Notice that the debt will be assumed to be valid unless disputed within 30 days. Notice that if the debt is disputed, the debt collector will verify the debt and send a copy of supporting documents to the debtor. Setting a Payment Due Date When demanding payment for money owed on a past due account, promissory note, or agreement, it is customary to allow ten to thirty days from the date of the demand. The deadline for payment should be a reasonable time after the date of the letter and should generally not be less than 10 days. Signing Instructions The Demand for Money Owed letter should be signed by the creditor (and the joint creditor, if any). A copy of the letter should be retained by the writer for his or her records. Photocopies, rather than original copies, of any relevant documents should be included with the letter. The writer should keep a copy of all correspondence to and from the debtor, and should maintain a written summary of all telephone conversations. Before mailing the Demand for Money Owed letter, the writer should investigate all appropriate state regulations regarding collections, as well as the federal Fair Debt Collection Practices Act, in order to determine whether or not the letter complies with the provisions of those laws. Mark your calendar as a reminder to follow up with another reminder letter or optional legal action. Threat of Legal Action The threat to turn over a delinquent account to attorneys or a collection agency should not be included in the letter unless you intend to carry through with the threat. Empty threats are unethical and they may quickly lose their effectiveness. Time Allowed for Repayment It is recommended that you delay taking further action for several days beyond the deadline stated in the demand letter. This is to allow for mail delays and procrastinating debtors.

Featured Lawyers

Jonathan Alan Blau
Santa Monica, California
Services: Document Review, Free Initial Consultation, General Consultation.
See profile

Bridget J. Hauserman
West Hollywood, California
Services:
See profile

Robert Mirque
Grand Rapids, Michigan
Services:
See profile

Find more Featured lawyers

Feedback

Are you a Lawyer?
Provide Feedback on this document and join your fellow contributors.

RocketLawyer.com™ provides information and software only.
This site is not a "lawyer referral service" and does not provide or participate in any legal representation.

Use of RocketLawyer.com is subject to our Terms and Conditions.

Free Demand for Money Owed

How to Place a Lien on a House or Other Personal Property

How to Collect Personal Debt from a Friend, Family Member, or a Business

Collecting Your Judgment

Request for Monthly Bank Statements

Bad Check Notice

60-Day Past Due Letter

Calculating Accrued Interest

Contact Information

Contacting Attorney General's Offices

Demand for Money Owed Letter

Fair Debt Collection Practices Act

Setting a Payment Due Date

Signing Instructions

Threat of Legal Action

Time Allowed for Repayment