How Do You Respond To A Demand Payment Letter?

What does a demand letter do?

A demand letter is a preliminary tactic used by individuals or entities as an attempt to resolve a dispute, usually over a form of payment owed by one party to another.

These letters are an effort by one party involved in the dispute to reach a resolution before taking formal legal action through the courts..

How long does it take State Farm to respond to a demand letter?

How Long Does It Take the Insurance Company Take to Respond to a Demand Letter?Ins. Comp.No. CasesAvg. (Days)Nationwide1478Progressive430State Farm2067Travelers5418 more rows

How do you respond to a demand payment letter?

Respond to The Demand Letter When drafting your response, it is important to take the matter one step at a time. For each claim, express whether you agree, disagree, or need more information. If you disagree, you should state why.

What happens if you don’t respond to a demand letter?

Never ignore a demand letter. If you receive one, contact your attorney immediately. Some people think if they don’t respond, the sender will go away. This is usually not the case — especially if the other party has retained an attorney. Respond and try to resolve the issue or you run the risk of going to court.

What happens after attorney sent demand letter?

Timeline After the Demand Letter Is Sent The most common route is that, after your demand letter has been sent, the insurance company will reject your settlement amount and come back with a different value. Once that has been sent, you and your attorney will either accept or refuse the amount.