Demand letters for collections cases serve a variety of purposes. They:

1. Act as a "last chance" communication with the debtor to try to get payment;
2. Act as a method to communicate Fair Debt Collection Practices Act disclosures;
3. Act as a method to communicate Texas Debt Collection Act disclosures;
4. Act as a trigger for statutory attorney's fees claims; and
5. Serve as a method to verify service addresses for an eventual lawsuit

Often, when a file is placed with an attorney for collection, an attorney will prepare and send a demand letter to all debtors at all known addresses in an attempt to give a final chance for the debtor to settle, and attempt to determine which addresses are valid, even if the client has sent a letter. Sometimes, receiving a letter from an attorney will indicate an escalation of the file to litigation, prompting some debtors to re-evaluate whether they can delay payment any longer.

If you have a legal issue related to Demand Letters, please contact Marc Lippincott or Erik Cary for an appointment to discuss.

Cary & Lippincott PLLC - 700 Lavaca Suite 1030 - Austin, TX 78701 - (Main) 1-512-472-2300 - (Fax) 1-512-472-2303