How to Write a Demand Letter That Actually Gets You Paid

Someone owes you money and won't pay. A contractor ghosted you after a half-finished job. Your landlord pocketed your security deposit. Your employer shorted your paycheck. Now what?

Before you lawyer up or file a court case, there's a step that resolves most disputes faster and cheaper: a demand letter.

According to the American Bar Association, the vast majority of civil disputes settle before trial — and a well-written demand letter is often the thing that gets the other side to take you seriously. It costs nothing to send, takes about 30 minutes to write, and puts you in a dramatically stronger position whether the dispute resolves or ends up in court.

This guide walks you through exactly how to write one that works — with three real sample letters you can adapt to your situation.

What Is a Demand Letter (And Why It Works)

A demand letter is a formal written notice that tells someone: you owe me, here's why, here's the law that says so, and here's what happens if you don't pay by this date.

It's not a lawsuit. It's not legally binding on its own. But it's one of the most effective tools in dispute resolution for three reasons:

1. It signals you're serious. Most people who get screwed just complain. The ones who send formal letters with legal citations are the ones who file lawsuits. The recipient knows this.
2. It creates a paper trail. If you do end up in court, the demand letter becomes exhibit A — showing you tried to resolve the dispute reasonably before suing.
3. It's required in some states. In Massachusetts, California, and several other states, certain claims require a demand letter before you can file suit or recover statutory damages.

Before You Write: The 3 Things You Need First

Don't start typing until you have these three things nailed down. They're the foundation of a letter that gets results.

1. Your Evidence

Gather everything that supports your claim:

• Contracts, leases, or written agreements
• Receipts, invoices, or proof of payment
• Photos or videos of damage/work
• Emails, texts, or written communications
• Dates, times, and a chronological timeline
• Witness names and contact information

You won't attach all of this to the letter, but you need to know exactly what you have. Reference specific documents in your letter (e.g., "per the lease agreement dated March 1, 2025") — it shows you have the receipts, literally.

2. The Applicable Law

Your letter needs teeth, and the law is what gives it teeth. Look up:

• Your state statutes — For example, security deposit laws vary by state. New York requires return within 14 days; California gives 21 days.
• Contract provisions — Quote the specific clause that was violated.
• Statutory penalties — Many states impose penalties on top of what you're owed. In Massachusetts, landlords who wrongfully withhold deposits owe triple damages under M.G.L. c. 186, § 15B.

Don't worry about being a legal expert. You can find your state's laws through your state-specific guide or resources like Cornell Law Institute.

3. Your Number

Calculate exactly what you're owed. Be specific and itemize:

• The base amount owed (e.g., $2,400 security deposit)
• Statutory interest or penalties if applicable
• Additional costs incurred (filing fees, certified mail costs, etc.)
• The total demand amount

The Proven 6-Part Demand Letter Format

Every effective demand letter follows the same structure. Here's the format, with explanations of what goes in each section:

Part 1: Header and Contact Information

Use standard business letter format. Include:

• Your full name and mailing address
• The date
• Recipient's full legal name and address
• A "Re:" line summarizing the dispute (e.g., "Re: Demand for Return of Security Deposit — 123 Main Street, Apt 4B")

Use the recipient's legal name — the one on the contract, lease, or business registration. For businesses, address it to the owner or registered agent if possible.

Part 2: Statement of Facts

Lay out what happened in chronological order. Stick to facts — dates, amounts, what was said, what was done. No editorializing. This section should read like a timeline that anyone could follow:

• "On [date], I entered into a lease agreement for [address]."
• "On [date], I paid a security deposit of $[amount]."
• "On [date], I vacated the premises in good condition."
• "As of [today's date], [X days] have passed and no deposit has been returned."

Part 3: Legal Basis

This is where you cite the law or contract term that the other party violated. Be specific:

• "Under [State] [Statute Number], landlords must return security deposits within [X] days of move-out."
• "Per Section 4.2 of our agreement dated [date], payment was due within 30 days of completion."
• "Under the Fair Labor Standards Act (29 U.S.C. § 206), employers must pay at least minimum wage for all hours worked."

You don't need to write a legal brief. One or two relevant statute citations are plenty.

Part 4: Damages Calculation

Itemize what you're demanding:

If your state allows statutory penalties (like double or triple damages), mention that you reserve the right to pursue them in court — but make the initial demand the actual amount owed. This shows reasonableness.

Part 5: The Demand

State exactly what you want and by when:

• The specific amount of money or action required
• A specific calendar date (not "within 14 days" — write "by February 15, 2026")
• How to pay or respond (mailing address, and optionally email)

Part 6: Consequences

State what you'll do if they don't comply. Be honest — only threaten what you'll actually do:

• "If I do not receive payment by [date], I will file a complaint in [County] Small Claims Court."
• "I will also file a complaint with the [State Attorney General / Department of Consumer Affairs / Department of Labor]."
• "I reserve the right to seek all available remedies, including statutory penalties and attorney's fees."

Sample Letter #1: Security Deposit Demand

This is the most common type of demand letter. Adapt it to your state's specific deadlines and penalty laws.

Sample Letter #2: Unpaid Wages Demand

If your employer hasn't paid you for hours worked, this letter puts them on notice. Most state labor laws impose significant penalties on employers who withhold wages.

Sample Letter #3: Contractor Who Didn't Finish the Job

Contractor disputes are among the most common reasons people write demand letters. Whether they disappeared mid-project, did substandard work, or won't return your deposit, this template covers it.

7 Mistakes That Kill Demand Letters

After reviewing thousands of demand letters, here are the errors that most commonly undermine them:

1. Being Vague About What You Want

"I want my money back" is not a demand. "$2,400.00 by February 15, 2026" is a demand. Specificity is credibility.

2. Writing an Angry Rant Instead of a Business Letter

We get it — you're furious. But a judge reading your letter doesn't care about your feelings. They care about facts, law, and reasonableness. Every angry sentence weakens your position. Channel the anger into being thorough instead.

3. Making Threats You Won't Follow Through On

"I'll contact every news station in the city" or "I'll make sure your business is destroyed" — these aren't legal consequences, they're bluster. And if you do end up in court, they make you look unreasonable. Only threaten actions you're genuinely prepared to take: filing in small claims court, reporting to the AG, filing a wage claim.

4. Skipping the Legal Citations

A demand letter without legal citations is just a complaint letter. The statute number is what separates "please pay me" from "you're legally required to pay me, and here's the law that says so." It takes 10 minutes to look up your state's relevant statute. Do it.

5. Not Setting a Specific Deadline

"Please respond at your earliest convenience" is an invitation to never respond. Set a real date. "I require payment by February 15, 2026" leaves no ambiguity.

6. Sending It by Regular Mail Only

If there's no proof you sent it, you might as well not have sent it. Always use certified mail with return receipt requested. It costs a few dollars and could save your entire case.

7. Overstating Your Damages

Demanding $10,000 when you're owed $3,000 doesn't make you ambitious — it makes you untrustworthy. If a judge sees that your demand was wildly inflated, it undermines your credibility on everything else in the letter. Demand what you're owed, including legitimate penalties and interest.

How to Send It (This Part Matters More Than You Think)

The Gold Standard: USPS Certified Mail, Return Receipt Requested

Walk into any post office and ask for certified mail with return receipt. Total cost: about $4-7. You'll get:

• A tracking number proving the letter was mailed
• A green card signed by the recipient confirming delivery
• Legal proof that your demand was received on a specific date

Send a Backup Copy by Regular Mail

Some people refuse to sign for certified mail (yes, really). A backup copy via regular first-class mail ensures they can't claim they never got it. In many states, courts treat refusal to accept certified mail as constructive receipt.

Email as a Supplement (Not a Replacement)

Sending an email copy in addition to the physical letter is smart — it creates a digital record with a timestamp. But email alone is usually insufficient for legal purposes because there's no proof the recipient opened it.

Keep Copies of Everything

• A copy of the letter itself
• The certified mail receipt with tracking number
• The return receipt (green card) when it comes back
• Any email confirmation
• All evidence referenced in the letter

What Happens After You Send It

Scenario 1: They Pay (Best Case)

Great. Make sure the payment clears before you consider the matter resolved. If they pay by check, wait for it to clear. Get a receipt or written confirmation that the debt is satisfied.

Scenario 2: They Respond with a Counteroffer

This is common and usually a good sign — it means they're taking you seriously. Consider the offer carefully. If it's reasonable, negotiate in good faith. Get any agreement in writing before accepting partial payment. You don't want to take $1,500 of a $2,400 claim and lose your right to the rest.

Scenario 3: They Dispute Your Claim

They might claim you caused the damage, didn't fulfill your end of the contract, or that they don't owe you anything. This is where your evidence matters. Review their response, strengthen your position if needed, and prepare to file in court if they're being unreasonable.

Scenario 4: They Ignore It

An ignored demand letter is actually useful in court — it shows the defendant had notice of your claim and chose not to respond. Follow through on the consequences you stated in the letter. If you said you'd file in small claims court, do it. Judges view follow-through favorably.

States Where Demand Letters Are Required (or Strongly Recommended)

Some states require a demand letter before certain types of claims. Here are the most common:

• Massachusetts — Chapter 93A consumer protection claims require a 30-day demand letter before filing suit. Without it, you cannot recover statutory damages.
• California — While not always required, sending a demand letter before small claims court is strongly encouraged and can affect your ability to recover certain costs.
• Texas — The Deceptive Trade Practices Act (DTPA) requires a 60-day demand letter before filing suit.
• Florida — A 15-day demand letter is required before filing a civil theft claim under F.S. § 772.11.
• New York — While not required for most claims, a demand letter is standard practice and expected by small claims courts.
• Georgia — A demand letter is required before recovering attorney's fees in many types of claims.

Find your state's specific requirements →

Frequently Asked Questions

Can I write my own demand letter without a lawyer?

Yes — absolutely. You have every right to write and send your own demand letter. While a lawyer's letterhead can add weight, courts don't require attorney-drafted letters. What matters is that the letter is factual, professional, cites relevant law, and clearly states your demand. Thousands of people successfully use demand letters they wrote themselves.

How long should a demand letter be?

1-3 pages is ideal for most disputes. It should be long enough to cover the facts, cite the law, and make your demand clear — but short enough to actually get read. If your dispute is genuinely complex (multiple issues, extensive history), going to 4-5 pages is fine. But if you're writing more than that, you're probably including too much backstory.

What is a reasonable deadline in a demand letter?

14-30 days from the date of the letter is standard. For simple payment demands, 14 days works. For complex disputes involving companies or insurance, 30 days is more reasonable. Some states have specific requirements — Massachusetts 93A requires a 30-day response window. Always write a specific calendar date (e.g., "by February 15, 2026"), not just "within 14 days."

Should I send a demand letter before filing in small claims court?

In most cases, yes. Even when it's not legally required, a demand letter shows the court you tried to resolve the dispute reasonably. Some states require or strongly encourage it. And practically speaking, many disputes settle after a demand letter without ever needing court — saving you the filing fee ($30-200 depending on the state), time off work, and the hassle.

What happens after I send a demand letter?

Three outcomes: (1) They pay or agree — problem solved. (2) They respond with a counteroffer — negotiate in good faith and get agreements in writing. (3) They ignore it — follow through on your stated consequences. An ignored demand letter actually strengthens your position in court.

Is a demand letter legally binding?

No — it's a formal request, not a court order. But it carries real legal weight: it creates a written record, starts response clocks, can trigger statutory penalties, and serves as evidence. If the recipient agrees to your terms in writing, that agreement can be legally binding.

How do I send a demand letter?

USPS Certified Mail with Return Receipt Requested. It costs $4-7 at the post office and gives you proof of delivery. Send a copy via regular mail as backup, and optionally by email. Keep copies of everything.