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A demand letter for payment is a notice that requests payment from a debtor for an amount owed, demanding payment by a specific date. Collectors use this letter as a final warning before legal action. Sending a demand letter is important as it notifies the debtor, records the reason for the payment demand, informs them of the exact amount owed, and requests payment by a specific due date. It is beneficial for the collector to put the debtor on alert and can be used as evidence in court. A free template for a demand letter can be found online.
