Question of The Day: Is it necessary for a demand letter, especially for collecting a long-standing payment from a client, to be written by a lawyer in the Philippines?

Introduction: When dealing with overdue payments, especially for an extended period like eight months, sending a demand letter is a common first step. Understanding whether such a letter needs to be drafted by a lawyer or can be issued by the company itself is important for effective debt collection.

Guidance and Support:

Handling financial disputes requires a balanced approach, maintaining professionalism while asserting your rights.
It's important to be clear and concise in your communication to avoid misunderstandings.

Legal Overview: In the Philippines, a demand letter does not necessarily have to be written by a lawyer. Businesses and individuals are entitled to directly communicate with debtors to demand payment. However, a letter drafted by a lawyer can add a level of seriousness and professionalism to the communication and may demonstrate the willingness to pursue legal action if necessary.

Practical Advice:

Ensure the demand letter includes clear details of the debt, including the amount, the reason for the debt, and any previous attempts at collection.
Set a reasonable deadline for the payment.
Keep the tone professional and respectful.
Retain a copy of the letter for your records.
Consider sending the letter via registered mail or a method that provides proof of delivery.

Law Firm Assistance: If you prefer to have a lawyer involved, Respicio & Co. Law Firm can assist in drafting a demand letter. A lawyer’s involvement might encourage a more prompt response from the debtor and ensures that the letter adheres to legal standards, potentially laying the groundwork for further legal action if necessary.

Conclusion: While a demand letter for overdue payments can be written and sent by the company itself, involving a lawyer can lend additional weight to the demand. Whether you choose to write the letter yourself or seek legal assistance, the key is to communicate your demand clearly, firmly, and professionally.