---
title: "Final demand letter: definition | Rex glossary"
description: "The last written notice before an overdue debt goes to an agency or legal action, stating the amount due, a deadline and what happens if it isn't paid."
canonical: https://www.rex.inc/glossary/final-demand-letter
---

# Final demand letter

Also called Letter before action

The last written notice before an overdue debt goes to an agency or legal action, stating the amount due, a deadline and what happens if it isn't paid.

A final demand formally ends the routine collection process. It should be accurate, factual and consistent with earlier correspondence, because it may later be used as evidence.

Courts in many jurisdictions expect to see a formal demand before a claim is filed, so check the local requirements before sending one.

## Further reading

- [How to send a final demand letter: template and legal checklist→](https://www.rex.inc/resources/templates/final-demand-letter-template)

## Related terms

- [Dunning letter A written payment reminder for an overdue invoice: one step in a dunning sequence, from a polite first notice to a final demand.](https://www.rex.inc/resources/glossary/what-is-a-dunning-letter)
- [Collection agency A third party that pursues overdue debts on a creditor's behalf, usually for a percentage of what it recovers.](https://www.rex.inc/resources/glossary/what-is-a-collection-agency)
- [Write-off Removing an invoice balance from accounts receivable because it won't be collected, charging it to bad debt expense or the allowance for doubtful accounts.](https://www.rex.inc/glossary/write-off)

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