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Sending a Letter of Demand

By admin
23 December 2013

Sending a Letter of Demand

We have previously advised you that if your claim is less than R 12 000 you can sue a person through the Small Claims Court (SCC). In order to do this, you need to follow these steps:

• The first thing you must do is to give the person who owes you money a Letter of Demand (LOD). This will state by when the borrower must pay back the money owed to you (this is normally within 14 working days).

• At the offices of the SCC they have a standard LOD, and a clerk may even help you to fill in the letter. As a policy holder, you can also contact Scorpion, who will assist in drafting a LOD for you.

• The LOD needs to be delivered to the party who borrowed money from you. You can take the letter to the borrower yourself. Be sure to take two copies as the borrower needs to keep one letter and sign the otherletter, which you will keep as proof of receipt.

• If the borrower refuses to accept your hand-delivered LOD, you can ask a police official to accompany you to deliver the letter. If the borrower still refuses to accept the letter, the police officer can sign it to confirm refusal and stamp the letter. Otherwise, you can send the letter by registered post. Remember to keep the registered slip as proof of delivery.

Click here for more information regarding Scorpion Legal Protection and money owed.