How to Respond to a Default Notice Letter

Updated February 21, 2017

A default letter notice, also called a letter of demand, is a notice sent to you from a company, a lawyer or a collection agency regarding an unpaid debt. The default letter contains information regarding the debt, how much money is owed, when they expect it to be paid and if you owe any interest in addition to the unpaid amount. There are certain ways you should proceed when receiving a default letter notice and how you can protect yourself.

Read the entire letter notice. Do not ignore the letter or toss it away to look at later. Default notices normally carry a time limit for you to respond to.

Write the issuer of the letter when there are aspects of the letter you do not understand. Default letters may contain legal verbiage that is hard to comprehend. Ask the issuer any questions regarding the notice.

Make a copy of the letter you send. Mail the letter registered return receipt so you have a record that your letter was received.

Make full payment to the issuer if you know what the debt is in regards to and you do not dispute it.

Contact the agency issuing the claim and see if it would negotiate a lower settlement if you are having difficulty coming up with the payment. Sometimes a creditor settles for less to avoid costly legal and court fees.

Ask the issuer of the default letter notice if you can work out an instalment plan to pay them back if you cannot pay in full. Some agencies want to work with you.

Contact a lawyer if you dispute the default notice. Go over the letter with your lawyer and proceed as he directs you. He takes over contact with the issuer of the letter on your behalf and looks for ways to settle the issue.

Things You'll Need

  • Copies of default letter and correspondence
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About the Author

Constance Barker, located in the hills of southern Ohio, is the owner and writer of several financial, credit report and travel websites. She started writing in 1999 for private clients and began creating website content in 2004. She gained expertise in home improvement after she and her husband built their home themselves.