Creditors issue a 10-day demand letter to debtors in case of an outstanding payment.
The letter charts out an entire scenario of how the debt came about and how long it has been standing in an account.
This type of letter may be written by any company (or representative thereof) to clients who owe money. It is more prevalent in financial companies such as stock or commodity exchanges or banks where loans and outstanding payments are a norm.
Clients try to buy time, and creditors keep giving them reminders of possible consequences in the event of non-payment.
Notification letters sent out to clients usually have a 10-day deadline. Some companies give this deadline as a general limit; others keep working days in consideration.
The 10-day rule is not something that every company must follow, but it is usually considered a standard.
The 10-day rule may apply from the date that the letter has been issued or from the date that the debtor has received it.
Demand letters are sent by registered mail so creditors know when a debtor has received it and can begin planning legal proceedings after the period has expired.
The following 10-day demand letter can be used as an example to write one if you are unsure of what goes into it:
10 Day Demand Letter Sample
June 8, 2019
Mr. Jack Lantern
88 Lopez Street
Carson City, NV 62191
Dear Mr. Lantern:
It has come to our notice that there is an outstanding debt of $5236 in your account #HlLS-7720 titles Jack Lantern at High Loops Investment Services since December 2017. Please note that this debit initially stood at $4005 but has significantly increased due to inactivity in your trading account and subsequent holding and late charges and will continue to grow if you do not take notice of it immediately.
Your account has been dormant for over 12 months, and we will soon have no choice but to close it completely. In case we need to close it permanently, we will not be responsible for the stocks that you have in this account. Please refer to the enclosed statement of your account which has pertinent information of both your stocks and the debts associated with them.
We advise you to come forward immediately and clear this amount. Furthermore, we recommend that you shift your stocks to a depository company of your choice since the pattern of your account suggests that you do not wish to trade anymore.
Please understand that you have 10 days from the receipt of this letter to respond to us and clear your debt in full, failing which we will have no choice but to initiate legal proceedings.
Regards,
Jill Miller
Collections Manager
High Loops Investment Services
Tel: (888) 888-8888