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A demand letter for payment is a formal request from a collector to a debtor, asking for payment of a specific amount by a given deadline. It's often the last warning before potential legal action. In the video, essential information about payment demand letters is provided, including where to find a free, official template. The letter serves several purposes: it alerts the debtor of possible legal consequences, documents the reason for the demand, specifies the exact amount owed, establishes a due date for payment, provides a written record for potential legal disputes, and can include an offer for a reduced settlement as an incentive. The demand letter should adhere to specific guidelines.
