Should I send a demand letter?
Q&A
Clients often say "I don't want to go through the Courts and I don't want to spend the money. Maybe we can just send a letter?"
You certainly can send a letter demanding payment. There is nothing stopping you from doing so, and it is helpful to let the Judge know that you have demanded payment.
Affordable Legal BC usually charges $195 for a demand letter (possibly a bit more if a company search is required). Instead of sending the letter first, we generally suggest you put those funds towards the fees required to commence the action.
In most cases the Defendant(s) already know they owe the money, so the letter is not giving them new information. Getting a letter from a legal professional might cause some initial alarm, however, that alarm subsides, and Defendants normally go back to business as usual shortly thereafter.
Q: If you don't recommend a demand letter, what should you do instead?
A: Use a carrot and or stick approach:
(a) Since the Defendant already knows they owe the money, you could consider offering to resolve the dispute for less than what is owed. The chance to pay a bit less may get a positive reaction and save you both a lot of time and energy. The wording required for an offer of this nature is special, contact our office for assistance; OR
(b) Go ahead and sue them. Once you file your claim and serve them they must deal with you and the claim. Instead of waiting for a response to your demand letter that isn't coming, you actually force them to communicate with you (in Court).