What is a Final Demand
A final demand letter about arrears lays out what must be done to prevent further action, which may or may not be legal action.
A find demand is not a statutory notification; meaning is not explicitly required in law, but is it something the court would expect to have been sent should legal measures be taken. The letter typically gives 7 or 14 days before they take further action.
We deal with final demand letters and similar creditor actions on behalf of our clients daily.
You must not ignore a final demand and should contact the creditor immediately to avoid them taking further action. If there are legal proceedings, you may also be liable for additional costs.
I’ve Received A Final Demand – What Should I Do?
Never ignore a final demand.
Check you agree with the demand
Firstly you should check the amounts. If you disagree, you should contact the sender to explain that you do not agree with the amount owed. You can ask them not to take any further action until the amount owed is agreed.
Explain the non-payment
If final demand is correct, you should contact the creditor to explain why you have not paid. They are usually sympathetic, especially if you agree to start repaying the debt by instalments. Try and reach an agreement that you expect to keep. Further broken promises of payment may result in them taking further action.
It may be that you can only make token payments now, with the promise of higher payments later, which is preferable to no offer of payment. Try and reach an agreement that you can afford to keep.
If you cannot agree on a repayment plan, then you should seek immediate advice to avoid matters getting worse.
How we can help
Many of our clients originally came to us when they were concerned about receiving a final demand they were unable to comply with.
The creditor needs to understand your other financial commitments. They need to understand you are making reasonable attempts to repay your debts as best you can. If you can’t afford your debts as they fall due, then you need to take action to reduce your monthly (or weekly) payments. This can be done by a debt management plan or an IVA.
We’d review your financial affairs and advise you accordingly. If we can help, we will deal with your creditors directly.