Debt Recovery Letters & Legal Demands #

A strong paper trail increases your chances of recovering a debt.

This guide covers:

• Letter templates for chasing payments
• Legal notices for escalating action
• When to send a statutory demand
• Checklist for writing effective letters

1. Payment Reminder Letter Sequence #

• Step 1: First Reminder (Polite Reminder) – Send after 7 days overdue
• Step 2: Second Reminder (Firm Request) – Send after 14 days overdue
• Step 3: Final Demand (Urgent Action Required) – Send after 21 days overdue
• Step 4: Notice of Intended Legal Action – Send after 30 days overdue
• Step 5: Letter Before Action (LBA) – The final step before legal action

These are all ideas of what an email may look like, always switch them to fit your current position or get expert advice

Template 1: First Reminder Letter (Polite Reminder) #

Subject: Friendly Reminder – Invoice #[Invoice Number] Overdue

Dear [Debtor’s Name],

We hope this email finds you well. Our records indicate that Invoice #[Invoice Number] for £[Amount] was due on [Due Date] and remains unpaid.

If payment has already been made, please disregard this message. Otherwise, we kindly request settlement at your earliest convenience.

Payment Details: Bank: [Bank Name] Sort Code: [Sort Code] Account Number: [Account Number]

Please confirm once payment has been processed. Let us know if you need any further details.

Regards, [Your Name] [Your Company]

Template 2: Second Reminder Letter (Firm Request) #

Subject: Second Reminder – Immediate Payment Required

Dear [Debtor’s Name],

Despite our previous reminder, Invoice #[Invoice Number] for £[Amount] remains unpaid. The due date was [Due Date], and we must now insist on immediate payment.

Outstanding Balance: £[Amount] New Due Date: [Date, e.g., 7 days from today]

Please make payment without delay to avoid further action. If there is any issue, contact us immediately.

Regards, [Your Name] [Your Company]

Template 3: Final Demand (Urgent Action Required) #

Subject: FINAL DEMAND – Overdue Payment for Invoice #[Invoice Number]

Dear [Debtor’s Name],

This is our final notice regarding the overdue balance of £[Amount] for Invoice #[Invoice Number], originally due on [Due Date].

Failure to settle this debt within [Final Deadline, e.g., 7 days] will result in formal legal action.

Next Steps If Payment Is Not Received:

• Referral to a debt collection agency
• Issuing a County Court Claim
• Possible statutory demand leading to insolvency proceedings

Please consider this letter as a final warning before we escalate this matter.

Regards, [Your Name] [Your Company]

When to Send a Legal Notice #

Issue a Statutory Demand →

Template 4: Letter Before Action (LBA) #

Subject: Urgent – Legal Action Pending for Overdue Debt

Dear [Debtor’s Name],

Despite multiple requests, your outstanding balance of £[Amount] for Invoice #[Invoice Number] remains unpaid. This letter serves as a final legal notice before court action.

If full payment is not received within 7 days, we will proceed with:

• Filing a County Court Claim
• Applying for a County Court Judgment (CCJ)
• Instructing enforcement agents to recover the debt

To avoid these consequences, make payment immediately to the account below:

Bank: [Bank Name] Sort Code: [Sort Code] Account Number: [Account Number]

If payment has already been made, please provide proof of payment. Otherwise, consider this a final warning.

Regards, [Your Name] [Your Company]

Next Step: If they ignore this letter, file a court claim →

Debt Recovery Letter Checklist #

• Include invoice references and amounts
• Mention due dates and late payment fees
• State next steps (court action, debt collection, legal notice)
• Set clear deadlines for payment
• Keep a record of all communications

Take Action Now #

• Step 1: Send the First Reminder Letter
• Step 2: If no payment, send the Final Demand Letter
• Step 3: Issue a Letter Before Action (LBA)
• Step 4: If ignored, send a Statutory Demand or file a claim

A structured approach helps maximize debt recovery success!