RESPONSE GUIDE
Responding to Payment Demand Letters

FDCPA Rights | California Rosenthal Act | Debt Validation | Dispute Strategies

✍️ Need to Send a Payment Demand Letter? See my guide on B2B Unpaid Service Invoice Demand Letters →
Understanding Payment Demand Letters
What Is a Payment Demand Letter? A payment demand letter is a formal written notice claiming you owe money and requesting payment. These letters may come from creditors, debt collectors, businesses claiming unpaid invoices, or attorneys. Understanding who sent the letter and what they are claiming is the critical first step in crafting your response.
Types of Payment Demands
Type of Demand Who Sends It Your Rights
Unpaid Invoice/Account Receivable Original creditor (business you allegedly owe) Basic contract defenses; no FDCPA protection
Debt Collection Letter Third-party debt collector or collection agency Full FDCPA and Rosenthal Act protections
Attorney Collection Letter Law firm collecting on behalf of creditor FDCPA applies if attorney regularly collects debts
Medical Debt Collection Medical provider or collection agency Additional protections under recent federal and CA rules
Credit Card Collection Card issuer or debt buyer FDCPA applies to debt buyers and collectors
Business-to-Business (B2B) Vendor, supplier, or contractor Commercial Code defenses; limited FDCPA applicability
Who Can Send a Payment Demand?
  • Original Creditors: The business you originally contracted with (store, service provider, lender)
  • Debt Collectors: Third-party agencies hired to collect debts on behalf of creditors
  • Debt Buyers: Companies that purchase delinquent debts and collect for their own account
  • Collection Attorneys: Law firms that specialize in debt collection litigation
  • Businesses: Companies claiming you owe for goods or services
Why It Matters Who Sent the Letter: Your legal rights differ significantly depending on who is demanding payment. Third-party debt collectors must comply with the Fair Debt Collection Practices Act (FDCPA) and California's Rosenthal Fair Debt Collection Practices Act. Original creditors have fewer restrictions but still cannot use deceptive or harassing tactics.
Legal Implications of Receiving a Demand

When you receive a payment demand letter, understand these key points:

  • It is not a lawsuit: A demand letter is a pre-litigation step. You have not been sued yet.
  • Response is optional but strategic: You are not legally required to respond, but doing so can protect your rights.
  • Silence is not admission: Ignoring a demand does not admit liability, but it may lead to a lawsuit.
  • Deadlines matter: If a debt collector sends the letter, you have 30 days to request debt validation.
  • Document everything: Keep the demand letter, envelope, and any related documents.
Critical: Check for Lawsuit Papers

Make sure you received a demand letter and NOT a court summons and complaint. If you received official court documents, you have a limited time to respond (typically 30 days in California) or a default judgment will be entered against you. Court documents will have a case number, court name, and specific deadlines. If in doubt, consult an attorney immediately.
What the Letter Should Contain

Under FDCPA (15 U.S.C. 1692g), debt collectors must include:

  • The amount of the debt
  • The name of the creditor to whom the debt is owed
  • A statement that the debt will be assumed valid unless disputed within 30 days
  • A statement that you can request verification of the debt
  • A statement that you can request the name and address of the original creditor
Missing Information = Red Flag: If a collection letter does not contain the required FDCPA disclosures, the debt collector may already be in violation of federal law. This gives you leverage in negotiations and may support a counterclaim for statutory damages.
California Commercial Code Considerations

For business-to-business payment disputes involving goods:

Code Section Relevance to Your Response
Commercial Code 2602 Right to reject non-conforming goods within reasonable time
Commercial Code 2607 Acceptance requires reasonable opportunity to inspect goods
Commercial Code 2714-2715 Buyer's damages for breach include cost of non-conformity
Commercial Code 2725 4-year statute of limitations on sales of goods claims
Evaluating the Claim Against You
Do Not Panic: Receiving a payment demand does not mean you necessarily owe the money. Many demands are based on errors, outdated debts, mistaken identity, or inflated amounts. Carefully evaluate the claim before deciding how to respond.
Step 1: Is the Debt Valid?

Ask yourself these questions:

  • Do you recognize the creditor? Have you ever done business with this company?
  • Does the amount seem correct? Does it match what you might have owed?
  • Do you have records? Can you find contracts, invoices, or payment records?
  • Is it your debt? Could this be a case of mistaken identity or identity theft?
  • Did you receive the goods/services? Were they delivered as promised?
  • Were there problems? Did you have legitimate disputes about quality or performance?
Common Reasons Debts Are Invalid:
  • Wrong person (same or similar name)
  • Debt already paid
  • Amount is incorrect (inflated interest, fees, or principal)
  • Debt was discharged in bankruptcy
  • Original creditor agreed to cancel or forgive the debt
  • The debt is the result of fraud or identity theft
  • Services were never provided or goods never delivered
Step 2: Check the Statute of Limitations
California Statute of Limitations on Debt:

In California, creditors have a limited time to sue you for unpaid debts. If the statute of limitations has expired, the debt is "time-barred." While the debt still technically exists, the creditor cannot successfully sue you for it.
Type of Debt Time Limit Legal Authority
Written contracts 4 years Code of Civil Procedure 337
Oral contracts 2 years Code of Civil Procedure 339
Credit card debt 4 years CCP 337 (treated as written contract)
Medical debt 4 years (written) / 2 years (oral) CCP 337 or 339
Promissory notes 4 years Code of Civil Procedure 337
Open accounts (store credit) 4 years from last activity CCP 337
When Does the Clock Start? The statute of limitations typically begins running from:
  • The date of your last payment, OR
  • The date you last acknowledged the debt in writing, OR
  • The date of the last charge/activity on the account
Warning: Making a partial payment or acknowledging the debt in writing can restart the statute of limitations clock.
Step 3: Disputing the Amount

Even if you owe something, the amount claimed may be wrong:

  • Inflated principal: The original amount may be misstated
  • Excessive interest: Interest charged may exceed legal limits or contract terms
  • Unauthorized fees: Late fees, collection fees, or other charges may not be permitted
  • Payments not credited: You may have made payments that were not applied
  • Returned merchandise: You may have returned goods for which you are still being billed
Step 4: "Already Paid" Defense
Proof of Payment: If you already paid this debt, gather your evidence:
  • Canceled checks (front and back showing endorsement)
  • Bank statements showing the payment
  • Credit card statements showing the charge was removed
  • Receipts or paid invoices
  • Written confirmation from the creditor that the debt was satisfied
  • Account statements showing a zero balance
Even if you paid the original creditor, debt collectors sometimes pursue debts that were already satisfied due to poor record-keeping.
Step 5: Other Defenses to Consider
Defense Explanation
Accord and Satisfaction You previously settled the debt for a lesser amount and that was accepted
Breach by the Other Party The creditor failed to deliver goods/services as promised, excusing your payment
Fraud/Misrepresentation You were induced to purchase through false statements
Duress/Undue Influence You were pressured or coerced into the transaction
Lack of Consideration You received nothing of value in exchange for the alleged obligation
Mistake The contract was based on a mutual mistake of material fact
Bankruptcy Discharge The debt was included in your bankruptcy and discharged
Identity Theft Someone else incurred the debt using your identity
Document Your Position: Whatever defense you assert, gather documentation to support it. Keep copies of all evidence in a safe place. If the matter goes to court, you will need to prove your defense.
Response Strategies
Your Response Options: You are not required to respond to a demand letter, but strategic responses can protect your rights, buy time, force the collector to verify the debt, or lead to favorable settlements. Choose the strategy that fits your situation.
Strategy 1: Debt Validation Request
Your Most Powerful Tool: Under the FDCPA (15 U.S.C. 1692g), if you dispute a debt in writing within 30 days of receiving the collection letter, the debt collector must stop collection efforts and provide verification of the debt. This is called a "debt validation request."

What Debt Validation Requires:

  • The collector must provide documentation proving you owe the debt
  • Documentation should include the original creditor, original amount, and how the current balance was calculated
  • The collector cannot resume collection until they provide verification
  • If they cannot verify, they should stop collecting
30-Day Deadline: You must send your debt validation request within 30 days of receiving the initial collection notice. After 30 days, you can still dispute the debt, but the collector is not required to stop collection activities while verifying.
Strategy 2: Written Dispute Letter

Even if the 30-day validation period has passed, you can still send a dispute letter:

  • State your dispute clearly: Explain why you do not owe the debt or why the amount is wrong
  • Request documentation: Ask for proof of the debt and chain of ownership
  • Preserve your rights: State that you reserve all rights and defenses
  • Create a record: Your dispute letter creates evidence you contested the debt
Strategy 3: Payment Plan Negotiation

If you owe some or all of the debt but cannot pay in full:

  • Propose installments: Offer to pay a fixed amount monthly over time
  • Request interest freeze: Ask that interest stop accruing during the payment plan
  • Get it in writing: Do not make payments without a written agreement
  • Protect credit reporting: Negotiate to have negative reporting removed upon completion
  • Include "paid in full" language: Agreement should state debt is satisfied upon completion
Strategy 4: Settlement Offer
Settling for Less: Creditors and collectors often accept less than the full amount owed, especially for older debts. Settlement offers typically range from 25% to 75% of the claimed amount, depending on:
  • Age of the debt (older = more leverage for you)
  • Whether they have documentation to prove the debt
  • Your apparent ability to pay
  • How close the statute of limitations is to expiring
  • Whether the collector purchased the debt for pennies on the dollar

Settlement Best Practices:

  • Start low - offer 20-30% and negotiate up
  • Require written settlement agreement before paying anything
  • Agreement must state debt is "satisfied in full" or "settled in full"
  • Get a release of all claims related to this debt
  • Specify how it will be reported to credit bureaus
  • Keep proof of payment forever
Tax Warning: If more than $600 of debt is forgiven, the creditor may issue a 1099-C form and you may owe income tax on the forgiven amount. Consult a tax professional about potential tax consequences of debt settlement.
Strategy 5: Cease Communication Demand

Under the FDCPA, you have the right to demand that debt collectors stop contacting you:

  • Send a written "cease communication" letter
  • The collector must stop calling, emailing, and writing
  • They can still send one final letter stating they are stopping communication or may take legal action
  • This does NOT eliminate the debt - they can still sue you
  • Use this strategy if harassment is severe and you are prepared for potential litigation
Strategy 6: Assert Time-Barred Debt

If the statute of limitations has expired:

  • You can send a letter stating the debt is time-barred
  • In California, collecting on time-barred debt without disclosure may violate the Rosenthal Act
  • Do NOT make any payment or acknowledge the debt in writing - this could restart the clock
  • If sued on a time-barred debt, assert the statute of limitations as an affirmative defense
Important: Collectors often try to trick you into making a small payment or acknowledging the debt to restart the statute of limitations. Do not fall for this. If the debt is time-barred, say so in writing and refuse to pay.
Choosing Your Strategy
Your Situation Recommended Strategy
You do not owe this debt at all Debt validation request + strong dispute letter
Debt is past statute of limitations Assert time-barred debt; refuse to pay
Amount is wrong but you owe something Dispute the amount + negotiate correct balance
You owe it but cannot afford to pay Payment plan negotiation or settlement offer
Harassment is unbearable Cease communication demand
You already paid Dispute letter with proof of payment
Sample Response Letters
Important: These are templates to be customized for your specific situation. Send all letters via certified mail, return receipt requested, and keep copies of everything.
Template 1: Debt Validation Request Letter

Use this within 30 days of receiving a collection letter to force the collector to prove you owe the debt.

[Your Name] [Your Address] [City, State ZIP] [Date] VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED [Collection Agency Name] [Their Address] [City, State ZIP] RE: Debt Validation Request - Account #[Account Number if provided] Creditor Name Listed: [Name from their letter] Amount Claimed: $[Amount] To Whom It May Concern: I received your collection letter dated [date] regarding the above-referenced account. Pursuant to my rights under the Fair Debt Collection Practices Act, 15 U.S.C. 1692g, I am writing to dispute this debt and request validation. I do not acknowledge that I owe this debt. Please provide the following documentation: 1. Verification that you are licensed to collect debts in California, including your license number. 2. A copy of the original signed contract or agreement between me and the original creditor. 3. Complete payment history showing the original amount owed, all payments made, all interest and fees added, and how the current balance was calculated. 4. Proof that you own this debt or are authorized to collect it, including any assignment or purchase agreement. 5. The name and address of the original creditor if different from what you have stated. 6. Verification that the statute of limitations has not expired on this debt. Until you provide proper validation of this debt, I demand that you: - Cease all collection activity on this account - Do not report this account to any credit reporting agency, or if already reported, notify them that the debt is disputed - Do not contact me by telephone regarding this account Please be advised that I am aware of my rights under the FDCPA and California's Rosenthal Fair Debt Collection Practices Act. Any violation of these laws, including continued collection activity before providing validation, will result in my filing complaints with the Consumer Financial Protection Bureau, the California Attorney General, and potentially filing a lawsuit for statutory damages. This letter is not an acknowledgment that I owe this debt. I expressly reserve all rights and defenses. Sincerely, [Your Signature] [Your Printed Name] cc: File copy
Template 2: Partial Payment Offer with Conditions

Use this when you believe you may owe something but want to negotiate the amount and terms.

[Your Name] [Your Address] [City, State ZIP] [Date] VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED [Creditor/Collection Agency Name] [Their Address] [City, State ZIP] RE: Settlement Offer - Account #[Account Number] Amount Claimed: $[Amount] Settlement Offer: $[Your Offer Amount] To Whom It May Concern: I am writing regarding your demand for payment of $[Amount] allegedly owed on the above-referenced account. WITHOUT ADMITTING LIABILITY, and while reserving all rights and defenses, I am prepared to make a one-time settlement payment under the following conditions: SETTLEMENT OFFER: I offer to pay $[Your Offer Amount] as full and final settlement of any and all claims related to this account. CONDITIONS OF SETTLEMENT: 1. FULL SATISFACTION: Upon receipt of my payment, you agree that this debt is satisfied in full and you release me from any further liability on this account. 2. WRITTEN AGREEMENT: Before I make any payment, you must provide a written settlement agreement signed by an authorized representative confirming these terms. 3. NO ADMISSION: This offer is made without admission of liability. My willingness to settle is not an acknowledgment that I owe this debt. 4. CREDIT REPORTING: Within 30 days of receiving my payment, you will: [ ] Delete this account from all credit reporting agencies, OR [ ] Update all credit reporting agencies to show this account as "Paid in Full" or "Settled in Full - Zero Balance" 5. RELEASE OF CLAIMS: You agree to release me from any and all claims arising from this account and will not sell, assign, or transfer any alleged remaining balance to any third party. 6. NO FURTHER CONTACT: After settlement, you will cease all collection activity and communications regarding this account. This offer expires [30 days from date of letter]. If I do not receive your written acceptance by that date, this offer is withdrawn. If you accept this offer, please send a signed settlement agreement to the address above. Upon receipt of the signed agreement, I will submit payment by [check/money order/certified funds] within [X] business days. This letter is for settlement negotiation purposes only and is inadmissible in any legal proceeding. Sincerely, [Your Signature] [Your Printed Name] cc: File copy
Template 3: Full Dispute - Debt Not Owed

Use this when you are certain you do not owe the debt or it has already been paid.

[Your Name] [Your Address] [City, State ZIP] [Date] VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED [Creditor/Collection Agency Name] [Their Address] [City, State ZIP] RE: DISPUTE OF ALLEGED DEBT - I DO NOT OWE THIS DEBT Account #: [Account Number if provided] Creditor Named: [Creditor Name] Amount Claimed: $[Amount] To Whom It May Concern: I am writing in response to your letter dated [date] demanding payment of $[Amount]. I categorically dispute this debt. I DO NOT OWE THIS MONEY. REASON FOR DISPUTE: [Choose and customize the applicable reason(s):] [ ] I HAVE NEVER HAD AN ACCOUNT WITH THIS CREDITOR. I have no record of ever doing business with [Creditor Name]. This may be a case of mistaken identity or an error in your records. [ ] THIS DEBT HAS ALREADY BEEN PAID. I paid this account in full on [date]. Enclosed is a copy of [canceled check/bank statement/receipt] proving payment. Your continued collection attempts are improper. [ ] THIS DEBT WAS DISCHARGED IN BANKRUPTCY. I filed for bankruptcy protection under Chapter [7/13] in the [Court Name] on [date], Case No. [number]. This debt was included in my bankruptcy and discharged on [date]. Attempting to collect a discharged debt violates the bankruptcy discharge injunction. [ ] THE STATUTE OF LIMITATIONS HAS EXPIRED. This debt allegedly originated on [date], which is more than [4 years for written/2 years for oral] ago. Under California Code of Civil Procedure Section [337/339], this debt is time-barred and legally unenforceable. Any lawsuit you file will be dismissed, and your continued collection attempts may violate California law. [ ] THIS IS IDENTITY THEFT. I am a victim of identity theft and did not open this account or incur this debt. I have filed a police report (Report #[number]) and an FTC Identity Theft Report. Enclosed is a copy of my Identity Theft Affidavit. [ ] THE GOODS/SERVICES WERE NEVER DELIVERED. I never received the [goods/services] for which you claim I owe payment. I am not obligated to pay for something I never received. DEMANDS: 1. Immediately cease all collection activity regarding this alleged debt. 2. Remove any negative information reported to credit bureaus regarding this account. If you have reported this account, notify all credit reporting agencies that the debt is disputed and should be deleted. 3. Do not sell, transfer, or assign this alleged debt to any other party. 4. Provide written confirmation that you have closed this account and will not contact me again regarding this matter. NOTICE OF LEGAL RIGHTS: I am aware of my rights under the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.) and California's Rosenthal Fair Debt Collection Practices Act (Civil Code 1788 et seq.). If you continue to attempt to collect this debt after receiving this dispute, I will: - File complaints with the Consumer Financial Protection Bureau and California Attorney General - Pursue statutory damages under the FDCPA ($1,000 per violation) and Rosenthal Act ($1,000 per violation) - Seek actual damages, attorney fees, and costs This is not a refusal to pay a legitimate debt - this is notice that I DO NOT OWE THIS DEBT and your continued pursuit of it is improper. Govern yourself accordingly. Sincerely, [Your Signature] [Your Printed Name] Enclosures: [List any supporting documents you are including] cc: File copy
Sending Your Letters:
  • Always use Certified Mail, Return Receipt Requested
  • Keep a copy of the letter and the certified mail receipt
  • Save the green return receipt card when it comes back
  • Create a log of all communications about this debt
  • If the collector calls, document the date, time, and what was said
Your Legal Protections
Federal Protection: Fair Debt Collection Practices Act (FDCPA)
Who Is Protected: The FDCPA (15 U.S.C. 1692 et seq.) protects consumers from abusive debt collection practices. It applies when a third-party debt collector (not the original creditor) attempts to collect a personal, family, or household debt.

What Debt Collectors Cannot Do Under FDCPA:

Prohibited Conduct FDCPA Section
Call before 8 a.m. or after 9 p.m. 1692c(a)(1)
Contact you at work if you say your employer disapproves 1692c(a)(3)
Contact you after you send a cease communication letter 1692c(c)
Contact third parties (family, friends, employers) about your debt 1692c(b)
Use threats of violence or criminal prosecution 1692d
Use profane or abusive language 1692d(2)
Call repeatedly to harass you 1692d(5)
Falsely claim to be an attorney or government official 1692e(1-3)
Threaten to sue when they have no intent or ability to sue 1692e(5)
Collect more than you legally owe 1692f(1)
Deposit a post-dated check early 1692f(2)
Continue collection without validating disputed debt 1692g(b)
Your Right to Debt Validation (1692g):

Within 30 days of the collector's first contact, you can request validation of the debt. Once you do:
  • The collector must stop all collection activity
  • They must provide verification of the debt
  • They cannot resume collection until they provide verification
  • If they cannot verify, they should stop collecting entirely
California Protection: Rosenthal Fair Debt Collection Practices Act
Stronger California Protections: California's Rosenthal Act (Civil Code 1788 et seq.) extends FDCPA protections to original creditors, not just third-party collectors. This means the original company you owe money to must also follow fair collection rules in California.

Key Rosenthal Act Provisions:

  • Applies to Original Creditors: Unlike FDCPA, covers the original company you allegedly owe
  • Prohibits Same Conduct: Same prohibitions as FDCPA on harassment, false statements, unfair practices
  • Time-Barred Debt Disclosure: Collectors must disclose when a debt is past the statute of limitations
  • Private Right of Action: You can sue for violations and recover damages
  • $1,000 Per Violation: Statutory damages of up to $1,000 per violation
Your Cease Communication Rights

Under FDCPA Section 1692c(c), you can demand collectors stop contacting you:

  • Send a written letter stating you refuse to pay the debt or that you want all communication to stop
  • Once received, the collector can only contact you to:
    • Confirm they are stopping communication
    • Notify you of specific remedies they intend to invoke (like a lawsuit)
  • This does NOT eliminate the debt - they can still sue you
  • Use this for severe harassment when you are prepared to handle potential litigation
Validation Requirements
What Collectors Must Provide: When you request debt validation, the collector should provide:
  • The amount of the debt
  • The name of the original creditor
  • Documentation proving you owe the debt (ideally the original contract)
  • Proof of their authority to collect (assignment/purchase agreement)
  • A breakdown of how the current balance was calculated
Many collectors cannot provide adequate documentation, especially for older debts that have been sold multiple times.
Remedies for FDCPA/Rosenthal Violations
Remedy Amount
Actual Damages Any financial harm you suffered (lost wages, medical bills from stress, etc.)
Statutory Damages (FDCPA) Up to $1,000 per lawsuit (not per violation)
Statutory Damages (Rosenthal) Up to $1,000 per violation
Attorney Fees and Costs If you win, the collector pays your attorney
Class Action Damages Up to $500,000 or 1% of collector's net worth
Document All Violations: If a collector violates the FDCPA or Rosenthal Act:
  • Save all letters, voicemails, and text messages
  • Log all phone calls (date, time, what was said)
  • If possible, record calls (California requires two-party consent - inform them you are recording)
  • File complaints with CFPB, FTC, and California Attorney General
  • Consult a consumer rights attorney - many take FDCPA cases on contingency
Special Protections for Medical Debt

Recent changes provide additional protections for medical debt:

  • Credit Reporting: Medical debt under $500 cannot be reported to credit bureaus
  • Paid Medical Debt: Medical debt that has been paid cannot remain on credit reports
  • 1-Year Waiting Period: Medical debt cannot be reported to credit bureaus until at least 1 year after it first became delinquent
  • California AB 1020: Additional protections against aggressive medical debt collection in California
Credit Reporting Disputes

If a disputed debt appears on your credit report:

  • Dispute with Credit Bureaus: File disputes with Equifax, Experian, and TransUnion
  • Include Documentation: Attach your dispute letter and any supporting evidence
  • 30-Day Investigation: Credit bureaus must investigate within 30 days
  • Furnisher Obligations: The collector must verify the debt or have it removed
  • FCRA Violations: Reporting debt you have disputed without noting the dispute may violate the Fair Credit Reporting Act
Attorney Services
Received a Payment Demand? Get Legal Help.

If you have received a demand letter, collection notice, or threat of lawsuit, I can help you evaluate your options, assert your rights, and respond effectively. Whether the debt is invalid, time-barred, or you simply need help negotiating, an attorney can make a significant difference in the outcome.

When Debt Disputes Need Legal Help
Consider Consulting an Attorney If:
  • You have been served with a lawsuit (summons and complaint)
  • The amount claimed is substantial (over $5,000)
  • You believe the debt is invalid, fraudulent, or time-barred
  • You are a victim of identity theft
  • Debt collectors are harassing you or violating the FDCPA
  • You want to negotiate a settlement and need representation
  • You have multiple debts and need a comprehensive strategy
  • You are considering bankruptcy
  • The creditor is a large company with aggressive legal counsel
How I Can Help
  • Demand Letter Analysis: I review the demand letter to identify weaknesses, missing information, and potential FDCPA/Rosenthal violations
  • Defense Strategy: I help you determine the best response - validation request, dispute, negotiation, or preparing for litigation
  • Response Letter Drafting: I prepare professional, legally effective response letters tailored to your situation
  • Statute of Limitations Analysis: I determine whether the debt is time-barred and how to assert that defense
  • Settlement Negotiation: I negotiate with creditors and collectors to reduce the amount owed and obtain favorable terms
  • FDCPA/Rosenthal Claims: If the collector violated your rights, I can pursue claims for statutory damages
  • Litigation Defense: If you are sued, I represent you in court and assert all available defenses
  • Credit Report Disputes: I help remove inaccurate or unverified debts from your credit reports
Common Cases I Handle
  • Clients who received demand letters for debts they do not owe
  • Time-barred debts being pursued by aggressive collectors
  • Harassment and FDCPA violations by collection agencies
  • Identity theft victims being pursued for fraudulent debts
  • Disputes over the amount owed (inflated balances, unauthorized fees)
  • Clients who already paid but are still being pursued
  • Business-to-business invoice disputes
  • Lawsuit defense for debt collection cases
Schedule a Consultation

Book a call to discuss your situation. I will review the demand letter, explain your legal options, and recommend the most effective strategy to protect your rights and resolve the matter.

Contact Information

Email: owner@terms.law

Frequently Asked Questions
No, you are not legally required to respond to a demand letter. However, strategic responses can protect your rights and lead to better outcomes. If a debt collector sent the letter, responding with a debt validation request within 30 days forces them to stop collection and prove you owe the debt. If you ignore the demand, the creditor may file a lawsuit against you.
In California, the statute of limitations is 4 years for written contracts and credit card debt, and 2 years for oral contracts. Once the statute of limitations expires, the debt is "time-barred." The creditor can still try to collect, but they cannot successfully sue you. If sued on a time-barred debt, you must raise the statute of limitations as an affirmative defense. Be careful - making a payment or acknowledging the debt in writing can restart the clock.
A debt validation request is a letter you send to a debt collector demanding proof that you owe the debt. Under the FDCPA, if you send this within 30 days of receiving the collection letter, the collector must stop all collection activity until they provide verification. Many collectors, especially those who bought old debts, cannot provide adequate documentation. This is one of your most powerful tools against improper collection attempts.
Yes. The Fair Debt Collection Practices Act (FDCPA) and California's Rosenthal Act prohibit abusive, deceptive, and unfair debt collection practices. If a collector violates these laws - by calling excessively, using threats, contacting you at prohibited times, or continuing to collect without validating a disputed debt - you can sue for actual damages, statutory damages (up to $1,000 per violation under Rosenthal Act), and attorney fees. Many consumer rights attorneys take these cases on contingency.
If a creditor files a lawsuit and you are served with a summons and complaint, you typically have 30 days to file a written response with the court. If you do not respond, the creditor will obtain a default judgment against you. With a judgment, they can garnish your wages (up to 25%), levy your bank accounts, and place liens on your property. Even if the debt was invalid, once a default judgment is entered, it is very difficult to undo. Always respond to a lawsuit, even if you dispute the debt.
Yes, debt settlement is common. Creditors and collectors often accept less than the full amount, especially for older debts. Settlement offers typically range from 25% to 75% of the claimed balance, depending on the age of the debt, the strength of their documentation, and your apparent ability to pay. Always get any settlement agreement in writing before making payment, and ensure it states the debt is "satisfied in full" upon payment.
The FDCPA is a federal law that applies only to third-party debt collectors - companies that collect debts on behalf of others. It does not apply to original creditors. California's Rosenthal Fair Debt Collection Practices Act extends similar protections to collections by original creditors. This means in California, even the original company you owe money to must follow fair collection rules. The Rosenthal Act also allows up to $1,000 in statutory damages per violation, rather than per lawsuit as under the FDCPA.
Under the FDCPA, if you send a written cease communication letter, the debt collector must stop contacting you. They can only send one final communication stating they are ceasing contact or notifying you of specific actions they intend to take (like filing a lawsuit). If they continue calling after receiving your written cease request, they are violating federal law and you may have grounds for a lawsuit. Note that this does not eliminate the debt - they can still sue you.

Related Resources

Explore additional California legal guides and resources:

Need Help Responding to a Payment Demand?

Whether the debt is invalid, time-barred, or you need help negotiating a settlement, I can help you understand your options and respond effectively. Do not let aggressive collectors take advantage of you.

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Your Rights When Responding to Payment Demands in California

When you receive a payment demand or collection letter in California, you have powerful legal protections. The Fair Debt Collection Practices Act (FDCPA) and California's Rosenthal Act give you the right to dispute debts, demand validation, and hold collectors accountable for abusive practices. Understanding these rights is essential to protecting yourself from improper collection attempts.

Key Legal Protections for Debt Disputes

Effective Response Strategies