What is a final demand letter?

A final demand letter is exactly what it sounds like: a last attempt to get someone to pay before you take legal action.

Final demand vs letter before action

These terms are often used interchangeably, but there's an important difference:

In practice, many people combine them into one letter, though a lot of businesses that have a lot of B2C debt often issue final demands as a separate step before issuing letters before action. The key is that before you file a court claim, you must have sent a letter that meets the legal requirements of a letter before action. You do not have to issue a final demand letter - this is not required by the Court's rules.

What to include in a final demand

Essential elements:

• Your full name and contact details
• Their full name and address
• The exact amount owed (with breakdown)
• What the debt is for (i.e. identify the unpaid invoices and their dates)
• A clear deadline to pay (14-30 days)
• How to pay (bank details)
• Warning of court action if they don't pay

Helpful additions:

• Copies of invoices attached
• Reference to previous reminders sent
• Statement that costs will increase if you go to court
• Offer to discuss a payment plan (but only if you want to do this)

Free final demand letter template

[Your name/business name] [Your address] [Date]

FINAL DEMAND FOR PAYMENT

Dear [Debtor's name],

Re: Outstanding balance of £[amount] - FINAL NOTICE

Despite my previous reminders dated [dates of previous reminders], the sum of £[amount] remains unpaid.

This is my final demand for payment.

The debt:

• Amount: £[amount]
• Invoice(s): [numbers]
• Originally due: [date]

What you must do:

Pay the full amount within 14 days of this letter.

If you do not pay:

I will start legal action against you. This will add court fees to the amount you owe and may result in a County Court Judgment (CCJ) against your name.

Payment details:

[Bank name] Sort code: [XX-XX-XX] Account: [XXXXXXXX] Reference: [Invoice number]

If you are experiencing financial difficulties and wish to propose a payment arrangement, contact me within 7 days.

Yours sincerely,

[Your name]

When to send a final demand

The typical debt recovery timeline:

1. Day 1-7 after due date: Friendly reminder
2. Day 7-14: Firmer reminder
3. Day 14-30: Final demand / Letter before action
4. Day 30+: Court claim if no response

Don't wait too long. The longer a debt goes unpaid, the harder it is to recover.

Does a final demand letter work?

Yes, often it does. Many debtors pay after receiving a formal demand letter to avoid the hassle and cost of legal action.

The letter works because:

• It shows you're serious about pursuing the debt
• Court action has real consequences (CCJs, enforcement, credit damage)
• Most people want to avoid legal proceedings
• A formal letter is harder to ignore than an email

What if they still don't pay?

If your final demand is ignored:

1. Wait for the deadline to pass (typically 14 days)
2. **Prepare and send a Court compliant Letter Before Action"" Garfield can help you prepare and send this letter
3. File a court claim If your Letter Before Action is not paid, you can issue a Court claim through Garfield
4. The court will notify the debtor and give them 14 days to respond
5. **If they paid"" then your case is concluded
6. If they don't respond, you can apply for default judgment and Garfield will help you do that
7. If they defend, the case proceeds to a hearing

How Garfield makes the process easier

If the debtor ignores your final demand letter, Garfield:

• Generates professional letters before action automatically
• Sends them via email and post
• Monitors for responses
• Automatically escalates to court filing if ignored and you wish to take this step
• Handles the court process for you

You upload your invoice, and Garfield handles everything else. No templates, no Post Office visits, no chasing deadlines.