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A demand letter for payment is a formal notice requesting a debtor to pay an owed amount by a specific date, often serving as a final warning before legal action. This video tutorial covers the essential aspects of payment demand letters, including their importance in alerting the debtor about potential legal consequences. It emphasizes the benefits for the collector, such as documenting the payment request, stating the exact amount owed, establishing a due date, and providing written evidence for any future legal disputes. Additionally, it suggests that the letter can present a reduced settlement as an incentive. The video also offers information on obtaining a free and official template for drafting a demand letter.
