It usually arrives by email or registered post, on a law firm’s letterhead, with a deadline of seven or fourteen days.
Most people read it twice, put it in a drawer, and hope it goes away.
It rarely does.
What a letter of demand is
A letter of demand is not a court document. No court has looked at the claim, and nothing has been decided.
It is a warning, and a record. The other side is showing that they asked before they sued. If the matter goes to court, the letter and any reply to it may be put before the judge.
Is the deadline binding?
The deadline is theirs, not the law’s. Missing it does not, by itself, make you liable.
What it usually means is that the other side may start court proceedings after that date without writing again. Some do. Many wait. The letter will not tell you which.
One kind of demand is different. A statutory notice of demand served on a company under the Companies Act 2016 carries its own time limit, and letting it pass can lead to a winding-up petition. Treat that one as urgent.
Respond, even if the claim is inflated
Silence is rarely neutral. A claim that went unanswered can later be described as a claim that was never disputed.
A short reply, sent before the deadline, can:
- say that the claim is disputed, and why, in a few lines;
- correct facts that are wrong, such as the amount or the dates;
- ask for the documents the claim relies on;
- ask for more time, if you need it to take advice.
What to be careful with in writing
Be careful with apologies, and with part-payments offered “to settle things”. A written acknowledgment of a debt, or a part-payment, can give the other side more time to sue. If you are unsure whether you owe the amount, take advice before you admit it in writing.
Do I need a lawyer?
Not every letter needs a lawyer. If the amount is small, the facts are clear and you agree you owe it, paying, or agreeing a payment plan directly, may be the sensible course.
It is worth taking advice when the amount is significant, when you dispute the claim, or when the demand is a statutory notice to a company.
Keep the paper trail
Keep the envelope or the email, note the date it reached you, and keep a copy of everything you send. If the matter goes further, the dates will matter.
A reply takes an afternoon. An unanswered claim can take much longer to undo.
Related: Debt recovery · Civil and commercial litigation
This article is for general information only. It is not legal advice and does not create a solicitor-client relationship. It was written on 27 September 2026, may not reflect later changes, and may not apply to your circumstances. Do not act, or refrain from acting, on it without advice on your own situation. We accept no liability for any loss arising from reliance on it. See the Disclaimer.