The Letter of Demand

Short, accurate, and within the limits the law places on how payment may be demanded.

A good demand is brief. It states who is owed what, on what basis, by when, and what follows if it is not paid — and it stops. A long letter reads as uncertainty, and an aggressive one creates both a defensive debtor and, potentially, a legal problem for the creditor who sent it.

Five Things In, and One Thing Out

In: the creditor, correctly named. The debt — the sum and the basis, referring to the invoices, contract or account rather than asserting a bare figure. The requirement: payment of a stated amount, to a stated destination, within a stated and reasonable period. The consequence if it is not paid, stated accurately — and only what the creditor is genuinely willing and able to do. And an invitation to make contact if there is a dispute or a difficulty, which is not softness but sense: it is frequently the step that surfaces the information determining whether proceedings are worth issuing at all. Out: everything else. The history of the relationship, the creditor’s frustration, moral commentary, and above all any threat the creditor will not carry out. A deadline that passes without consequence teaches a debtor that the next one can be ignored too, so the period should be one you will actually hold to. And where a limitation deadline is approaching, the demand period must not be allowed to consume it — only issuing proceedings stops the clock, and correspondence never does.

The Statutory Limits Every Creditor Should Know

Section 11 of the Consumer Credit Act 1995 makes it an offence to make a demand for payment by means calculated to cause alarm, distress or humiliation; falsely to represent that legal proceedings have been or will be issued; or falsely to imply official sanction or authority. In practice that rules out threatening proceedings the creditor does not intend to bring, implying criminal consequences for a civil debt, documents dressed up to resemble court papers, repeated contact designed to wear a person down, approaching an employer or family member about someone’s debt, and language intended to shame. It is worth every creditor knowing this, because a good deal of template material in circulation online would sit uncomfortably with it, and because the consequences of getting it wrong are not merely reputational. Beyond the criminal provision there is a straightforward tactical point: a demand that overstates the position damages the creditor’s own case. If proceedings follow, that letter is read by a court, and an inaccurate or intemperate one shapes the view formed of the party who sent it. Accuracy is not politeness; it is self-interest. Consumer debt carries additional considerations, and mortgage arrears fall under a separate framework entirely.

Internal Chasing Has Stopped Working?

Send the sum, the basis, what has been said so far and the debtor's correct legal name. A demand can usually issue within days - but the limitation and dispute questions get checked first.

Call 01 5827148

Related Reading

Letters of Demand - FAQs

Five things and not much else. Who the creditor is, correctly named. What the debt is - the sum, and the basis on which it is claimed, with reference to the invoices, contract or account rather than a bare figure. What is required: payment of a stated amount, to a stated destination, within a stated and reasonable period. What will follow if it is not paid, stated accurately - and only what the creditor is genuinely willing and able to do. And an invitation to make contact if there is a dispute or a difficulty, which is not softness but sense: it frequently produces the information that determines whether proceedings are worth issuing. Brevity helps. A long letter reads as uncertainty, and a hostile one creates a defensive debtor and, potentially, a legal problem for the creditor.

General information, not legal advice. This website contains general information about Irish law on debt recovery and enforcement. It is not legal advice and does not create a solicitor—client relationship. Every debt turns on its own facts — the documents, the dates, the parties and the debtor’s circumstances — and advice on yours requires a consultation. Statutory thresholds and figures referred to on this site are subject to change and should be confirmed before any step is taken.

A law firm, not a debt collection agency. Mary Molloy Solicitors provides legal advice and representation. It does not operate as a debt collection agency and does not conduct collection campaigns. Fees are agreed in writing with the client at the outset and are never calculated as a percentage or proportion of any sum recovered. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.

No outcome is promised. Nothing on this site states or implies that any debt will be recovered, that any asset will be found, that any enforcement step will succeed, or that any claim will succeed. Recovery depends substantially on the debtor’s means, which are frequently unknown at the outset.

How payment may be demanded is regulated. Section 11 of the Consumer Credit Act 1995 makes it an offence to make a demand for payment by means calculated to cause alarm, distress or humiliation, or falsely to represent that legal proceedings have been or will be issued. Nothing on this site should be read as encouraging any such conduct. Mortgage arrears on a principal private residence are dealt with under a separate regulatory framework and are outside the scope of this site.

If you are the person being pursued. Free, confidential and independent money advice is available in Ireland from MABS, the Money Advice and Budgeting Service, and through the Abhaile scheme for people in mortgage arrears. You do not have to engage a solicitor to get help, and taking advice early generally improves the options available. This firm advises debtors in matters separate from those in which it acts for a creditor, and never both sides of the same debt — conflicts are checked before any substantive discussion.

Tax. Nothing on this website is tax advice. Questions about VAT on recovered sums, bad debt relief or the treatment of write-offs belong with your accountant or tax adviser and with Revenue’s own guidance.