LawAccess NSW > Representing Yourself > Debt > Responding to a claim

Sample response to a letter of demand

Form assistanceThis is an example of a response to a letter of demand. It is important to write your response using your own details and based on your own circumstances. If you need more help, get legal advice

AlertWhenever you write to the other party, you should make sure you don't say anything that could be used against you in court. You should double check any money amounts and dates to make sure they are correct. 

Handy hintIf you want to offer to settle the matter, you can write the words 'Without Prejudice' on your letter. This means that things you say in a genuine attempt to resolve the dispute out of court can't later be used against you.

Case studyCase study – Charlie and Kylie

Last year Charlie lent $2,000 to his girlfriend's sister, Kylie. Kylie needed the money to pay her fines so that she could get her driver's licence back. The agreement was that Kylie would pay the money back by Christm​​as, but now it is July and she still hasn't paid. Charlie has broken up with his girlfriend, and Kylie seems to be avoiding him. Charlie needs the money because he is starting a course soon and will only be working part time. Charlie sends Kylie a letter of demand. Kylie responds to Charlie's letter of demand.​​​​

Ms Kylie Ransom
12/45 Brown Street
Bathurst NSW 2638

25 August 20xx

Charlie Ying
37 Blue Street
Bathurst NSW 2638

Dear Charlie


I refer to your letter dated 15 August 20xx.

I don't agree with what you say happened on 25 June 20xx. You didn't tell me that the $2,000 you gave me was a loan and I didn't say that I would pay you back. 

I'm sorry that you haven't been able to reach me recently. I lost my mobile phone and have a new number.

I believe that you gave me $2,000 as a gift, not a loan. I think that you are now saying the money was a loan because you have broken up with my sister. I can't afford to pay you back the money in any event because I don't have any savings and only make enough money to pay my monthly expenses. 

My mobile number is 0444 444 444.

Yours sincerely, 

K. Ransom

Kylie Ransom