Demand Letter Response Guide

You Received a Demand Letter.
Now What?

Take a breath. A demand letter is not a lawsuit, and you have options. This guide will help you understand the letter, assess the claims, and respond professionally.

Don't Panic - Here's Why

A demand letter is NOT a lawsuit - no court has been involved yet
You have time to respond properly - usually 10-30 days
Ignoring it is usually the wrong move - but panicking is too
Most disputes settle without ever going to court
1

Your 5-Step Response Plan

1

Read It Carefully and Note Deadlines

Read the entire letter at least twice. Identify the specific claims being made, the amount demanded (if any), and any deadlines mentioned. Write these down.

Pro tip: Most deadlines in demand letters are not legally binding - they're chosen by the sender. However, don't ignore them entirely. A response within the timeframe shows you're taking the matter seriously.

2

Gather Your Documents

Collect everything related to the dispute: contracts, emails, text messages, receipts, photos, invoices, and any other evidence. Organize them chronologically.

What to look for: Written agreements, payment records, communications showing what was promised vs. delivered, photos or videos documenting condition of property or work.

3

Assess the Claims - Are They Valid?

Honestly evaluate the claims against you. Are they completely false? Partially true? Fully accurate but with missing context? This assessment will determine your response strategy.

Be honest with yourself: Even if you don't like the tone of the letter, ask yourself whether the underlying complaint has any merit. This isn't about being "right" - it's about understanding your actual position.

4

Decide Your Response Strategy

Based on your assessment, choose your approach: dispute the claims, negotiate a settlement, push back on frivolous demands, or seek professional help if you're unsure.

Consider the economics: Sometimes a small settlement is cheaper than the cost of fighting, even when you're right. Other times, standing firm prevents future demands.

5

Respond in Writing

Never ignore a demand letter. Always respond in writing (email is fine for most situations). Be professional, stick to facts, and avoid emotional language or personal attacks.

Golden rule: Write as if a judge might read your response someday. Keep it factual, professional, and avoid admissions or statements that could be used against you later.

2

What's Your Situation?

"The claims are wrong - I need to dispute"

The allegations are factually incorrect or legally unsupported. You have evidence that contradicts their claims, and you need to firmly (but professionally) push back.

🤝

"They have a point - I want to negotiate"

There's merit to their complaint, but the amount or terms demanded are excessive. You're open to making things right, just not on their exact terms.

🚫

"This is harassment/frivolous - I need to push back"

The demand has no legal basis, appears to be extortion, or is part of a pattern of harassment. You need to firmly reject it and potentially document for legal protection.

"I'm not sure - I need attorney review"

The legal issues are complex, the stakes are high, or you simply want professional guidance before responding. An attorney can help you avoid costly mistakes.

3

Common Demand Letter Types

🏠

Security Deposit Demands

Former landlord claiming you owe for damages, cleaning, or unpaid rent. Often disputes involve what constitutes "normal wear and tear" vs. actual damage.

Key defense: Move-in/move-out inspection reports, photos, and California Civil Code 1950.5 limits on what landlords can deduct.
💰

Unpaid Invoice / Debt Demands

Business or creditor claiming you owe money for goods, services, or outstanding balances. May come from collection agencies or attorneys.

Key defense: Dispute if services weren't provided as agreed, goods were defective, or if the debt is beyond the statute of limitations.
📦

Cease & Desist (IP/Defamation)

Someone claiming you've infringed their trademark, copyright, or made defamatory statements about them. Demands you stop and possibly pay damages.

Key defense: Fair use, truth as defense to defamation, or lack of actual confusion/damage for trademark claims.
📝

Contract Breach Claims

Business partner, contractor, or other party claiming you failed to fulfill your contractual obligations. May demand performance or damages.

Key defense: Material breach by the other party first, impossibility of performance, or contract defenses like fraud or duress.
🩹

Personal Injury Demands

Someone claiming they were injured on your property, by your product, or due to your actions. Often accompanied by medical bills and damage calculations.

Key defense: Contact your insurance immediately. Comparative negligence, assumption of risk, or lack of duty may apply.
💼

Employment-Related Demands

Former employee claiming unpaid wages, discrimination, harassment, or wrongful termination. These can escalate to agency complaints or lawsuits.

Key defense: Document legitimate business reasons for decisions, review employment records, and consider early resolution to avoid agency involvement.

Red Flags to Watch For

🚫 Threats That Sound Illegal

"Pay us or we'll report you to the police/IRS/immigration" - conditioning criminal reporting on payment is extortion, even if there's a legitimate civil claim.

⏰ Unreasonably Short Deadlines

"Respond within 24 hours or we sue" - legitimate attorneys typically give 10-30 days. Artificially short deadlines are pressure tactics, not legal requirements.

❌ Demands With No Legal Basis

The letter doesn't cite any specific law, contract provision, or legal theory - it's just threats. Legitimate claims usually reference specific legal grounds.

🚩 Scam Indicators

Payment required to overseas accounts, demands from "courts" you've never heard of, or threats for debts you don't recognize. Verify the sender is legitimate before responding.

4

Response Letter Generator

Fill out the information below to generate a professional response letter framework. This is a starting point - customize it for your specific situation.

Your Response Framework

5

Professional Services

📖

Free Response Guide

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Everything on this page - the step-by-step guide, response generator, and legal framework.

  • 5-step response framework
  • Response letter generator
  • Red flags checklist
  • Type-specific guidance
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🔍

Attorney Review of Their Letter

$150

I'll review the demand letter you received and provide a written analysis of its strengths, weaknesses, and recommended approach.

  • Legal claim analysis
  • Risk assessment
  • Recommended response strategy
  • 24-48 hour turnaround
Request Review
🏆

Full Negotiation Package

$750

Complete representation for resolving the dispute: analysis, strategy, all correspondence, and negotiation through settlement.

  • Everything in drafting package
  • All follow-up correspondence
  • Negotiation representation
  • Settlement agreement review
Request Consultation
🌞

California-Specific Matters

If your dispute involves California law, California parties, or property located in California, you're in the right place. I'm a California-licensed attorney with experience in the specific statutes, case law, and procedural requirements that apply to disputes here. California has unique protections in many areas - from tenant rights under Civil Code 1950.5 to consumer protection under the CLRA and UCL. I can help you understand how California law specifically applies to your situation.