The Flat Fee Demand Letter is a critical business document used in Australian jurisdictions when seeking payment for services that were agreed upon at a fixed price. This document is typically employed when previous informal payment requests have been unsuccessful, and the creditor needs to escalate the matter through formal channels. It serves as a prerequisite to legal action and must comply with the ACCC-ASIC Debt Collection Guidelines, Australian Consumer Law, and relevant state/territory regulations. The letter should contain comprehensive details about the debt, including the original agreement, service delivery confirmation, payment history, and clear payment instructions. It's designed to protect the creditor's interests while maintaining professional standards and legal compliance in debt collection practices.
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1. Sender Details: Full legal name, business details, and contact information of the creditor
2. Recipient Details: Full legal name and address of the debtor
3. Date: Current date of the demand letter
4. Outstanding Amount: Clear statement of the total amount owed, including any interest or additional charges
5. Debt Origin: Description of how the debt arose, including reference to the original agreement or services provided
6. Payment History: Summary of any previous payments made and remaining balance
7. Payment Instructions: Clear payment terms, methods, and deadline
8. Legal Consequences: Statement of potential legal action if payment is not received by the specified deadline
1. Interest Calculation: Include when charging interest on the outstanding amount, showing calculation method and rates
2. Previous Communications: Reference to prior attempts to collect the debt when multiple attempts have been made
3. Payment Plan Options: Include when willing to offer flexible payment arrangements
4. Dispute Resolution: Include when offering specific dispute resolution procedures
5. Statutory Declarations: Include when dealing with contested debts requiring formal declarations
1. Original Invoice: Copy of the original invoice or contract showing the agreed fee
2. Payment History Statement: Detailed statement showing all transactions and remaining balance
3. Service Agreement: Copy of the original service agreement or contract if applicable
4. Correspondence Log: Summary of previous payment requests and communications if relevant
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