What is a Demand for Payment of Storage Charges?
A demand for payment of storage charges is a formal notice to a customer that storage/moorage charges are in arrears and that further action may be taken if payment is not received on or before a certain date.
Why should a Demand for Payment of Storage Charges be used?
This demand is not required before proceeding with legal against such as a Storage Lien Sale, however, it can be used as a formal yet somewhat friendlier reminder that the sender means business and that payment must be made.
When should one be used?
Senders can use discretion on how firm they want to be in terms of when the notice is issued. Some choose to issue notices anytime payment is not made on the day it was due, while others wait until they seem to be getting nowhere with less formal collection efforts.
Where should it be issued?
Formal notices like this one should be issued to the most recent known address for any owners, and may also be issued to alternative addresses, as well as email addresses etc. just to be safe.
How should it be issued?
Since the notice is not legally required before taking further action it is not absolutely required for a verifiable method, such as Registered Mail, be used, however, the extra money is usually worth it to remove the chance of recipients claiming that it was never received.
What happens next?
If the demand for payment yields no response, you may consider proceeding towards a sale using a storage lien. You can see our selection of storage lien documents or find out more by clicking on your province’s Act below:
Alberta’s Warehousemen’s Lien Act
British Columbia’s Warehouse Lien Act
Saskatchewan’s Commercial Liens Act
Manitoba’s Warehousemen’s Lien Act
Ontario’s Repair and Storage Liens Act
Newfoundland’s Warehouser’s Lien Act
New Brunswick’s Storer’s Lien Act
Nova Scotia’s Storage Warehouse Keepers Act
Prince Edward Island’s Warehousemen’s Lien Act
Northwest Territories’ Warehouse Keepers Lien Act
