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A demand letter for payment is a formal notice requesting payment from a debtor for an amount owed. It specifies a deadline for payment and serves as a final warning before potential legal action. This video reviews the key aspects of payment demand letters and provides access to a free official template. Sending a demand letter is crucial for collectors as it alerts the debtor to possible legal consequences, documents the reason for the demand, specifies the exact amount owed, sets a due date, and provides written evidence for potential legal disputes. It can also be used to offer a reduced settlement as an incentive. The demand letter must follow specific guidelines.
