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A letter of demand is a letter from the other party asking you to return their goods, or pay you the money value of those goods. It often warns you that if this is not done they may start a court case to recover the goods.
When you receive a letter of demand, this might be the first time you find out that someone wants their goods back.
The letter may be sent by registered post or email. The demand can also be made over the phone or in person.
A letter of demand will usually state:
You can write a response to the letter of demand, explaining that you admit or deny their claim, offering to pay a different amount, or offering to pay the amount in instalments.
Sample: Sample response to letter of demand – goods
When the other party receives your response, they will decide whether to accept your offer, put a counter-offer or take the case to court.
If you and the other party reach an agreement, you should record any agreement with the other party in writing. For more information, see Resolving your dispute – Put it in writing.
If you need help working out what payments you can afford, you may want to visit a financial counsellor. To find a free financial counsellor, go to the Financial Rights Legal Centre website.
What you write in your response to a letter of demand could be used against you later if the case goes to court. If you are not sure how to respond to a letter of demand, you should get legal advice.