How to Write a Payoff Letter

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Step 1

Describe the situation as you understand it to be. For example, if you paid a contractor to repair a damaged wall and the contractor never performed the repair, this portion of the letter might read: “On February 13, 2011, you agreed to repair the damaged wall in the master bedroom of my home in exchange for $1,000. That same day, I wrote you a check for $1,000. According to my bank records, you cashed that check on February 14, 2011. Two weeks have since passed and you have not repaired the wall.”

Step 2

Tell the recipient what you want and give the recipient a deadline by which to comply. Continuing from the above example, this portion of the letter might read: “Please remit the sum of $1,000 to me within 10 days.”

Step 3

Inform the recipient what you will do if the recipient does not comply with your request. For example: “If you do not comply with my request, I intend to contact an attorney and file a lawsuit for the return of my $1,000.”

Step 4

Mail the letter by United States Postal Service registered mail, return receipt requested. Although registered mail is considerably more expensive than first-class mail, the return receipt can be used in court to show that the recipient did receive your letter.

About the Author

John Stevens has been a writer for various websites since 2008. He holds an Associate of Science in administration of justice from Riverside Community College, a Bachelor of Arts in criminal justice from California State University, San Bernardino, and a Juris Doctor from Whittier Law School. Stevens is a lawyer and licensed real-estate broker.

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