What is a demand letter?

A demand letter is a written document sent by a creditor to a debtor that outlines the reasons why the creditor believes the debtor owes money. The letter usually includes details of the debt, such as the amount, the dates it was incurred, and any interest that has accrued. In South Carolina, a demand letter is not a legally required step in trying to collect a debt, but it may be a helpful tool in coming to an agreement with the debtor. In South Carolina, the law requires that a demand letter clearly outline the amount due, the date by which the debtor must respond, and whom the debt is owed to. The letter must also be sent via certified mail or other delivery that provides evidence of delivery. A demand letter is usually sent to the debtor before a creditor resorts to legal action, such as filing a lawsuit. However, South Carolina law does not require creditors to send a demand letter before taking legal action. The idea behind a demand letter is that it gives the debtor the opportunity to resolve the debt before the matter escalates, usually by paying the amount owed. In some cases, the demand letter may also be used to notify the debtor of the creditor’s intention to file a lawsuit. This may prompt the debtor to contact the creditor to come to a payment agreement or to offer an explanation of why the debt is not owed. If the debt is not resolved, the creditor may proceed with legal action.

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