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Promissory Note Demand Letter for the United Kingdom

Promissory Note Demand Letter Template for England and Wales

A Promissory Note Demand Letter is a formal written demand for payment under English and Welsh law, sent by a creditor to a debtor who has previously signed a promissory note. The document serves as a formal notice requesting immediate payment of the outstanding amount, typically issued when payment has not been made according to the original terms. It includes specific details about the original debt, current amount due, and payment requirements, while complying with the Bills of Exchange Act 1882 and related legislation.

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What is a Promissory Note Demand Letter?

A Promissory Note Demand Letter is utilized when a debtor has failed to meet their payment obligations under a promissory note. This document, governed by English and Welsh law, serves as a crucial step in the debt collection process, often preceding legal action. It formally demands payment of the outstanding amount, typically including the original principal, any accrued interest, and applicable charges. The letter must comply with the Bills of Exchange Act 1882 and related legislation, making it an essential tool for creditors seeking to enforce their rights under the original promissory note agreement.

What sections should be included in a Promissory Note Demand Letter?

1. Recipient Details: Full name and address of the debtor

2. Original Debt Reference: Details of the original promissory note including date and amount

3. Current Amount Due: Total amount currently owed including any interest or charges

4. Payment Demand: Clear statement demanding immediate payment

5. Payment Instructions: How and where to make the payment

6. Response Timeline: Deadline for response or payment

What sections are optional to include in a Promissory Note Demand Letter?

1. Payment History: Summary of previous payments or failed attempts, use when there's relevant history

2. Interest Calculation: Breakdown of interest charges, include if interest has accrued

3. Legal Consequences: Warning of potential legal action, include if previous demands have been ignored

What schedules should be included in a Promissory Note Demand Letter?

1. Copy of Original Promissory Note: Copy of the signed original note

2. Payment History Statement: Detailed statement of payments and charges

3. Interest Calculation Schedule: Detailed breakdown of interest calculations if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Demand Letter

Sector

Marketing

Cost

Free to use
Relevant legal definitions













Clauses














Industries

Bills of Exchange Act 1882: Primary legislation governing promissory notes in England and Wales. Defines valid promissory notes and sets out the rights and obligations of parties involved.

Limitation Act 1980: Establishes time limits for bringing legal actions. For promissory notes, typically allows 6 years from the date of default or demand to bring legal action.

Consumer Credit Act 1974: Regulates consumer credit agreements. Affects enforceability and required terms if the promissory note involves consumer credit or if the debtor is a consumer.

Civil Procedure Rules: Sets out the rules for civil litigation in England and Wales, including pre-action protocols and notice requirements for legal proceedings.

Common Law Principles: Fundamental legal principles including doctrine of consideration, rules regarding demand and notice, and requirements for valid contracts under English law.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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