Demand for Payment of a Unsecured Loan
Demand for payment is used by lenders to notify borrowers of outstanding loan amounts and to demand that the charges be paid on or before a certain date.
Whose it for?
- Financial Lenders
- Individuals
When is a Demand for Payment used?
Issuing a formal demand as soon as possible after payments are missed helps lenders stay on top of the borrower’s mind and gets them ready for prompt legal action if it becomes necessary.
Why is a Demand for Payment used?
Depending on the province where the borrower is located and the terms of the agreement demand notice may or may not be required by law. Even when not required, lenders use this notice as a last chance for the borrower before serious action is taken.
What if the borrower still doesn't pay?
When borrowers just won’t cooperate lenders may choose to send the matter to collections or to apply for enforceable court-ordered payment. Lenders should consider the amount owed, the likelihood of collection, and other factors when deciding how to proceed.
What does it look like?
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