Question 1

What is a demand letter?

Accepted Answer

A demand letter is a formal letter sent to a person or business who owes you money or property. It tells them exactly what you are claiming, why, and the deadline to respond before you take the next legal step, which is usually filing a claim in Ontario's Small Claims Court. It is often the last step before a lawsuit, and in many disputes it is the first time the other side realizes you are serious.

Question 2

What is a "legal demand for payment"?

Accepted Answer

A legal demand for payment is a demand letter focused on money owed, such as an unpaid invoice, loan, deposit, refund, or amount due under a contract. It sets out the amount claimed, the basis for the debt, a clear payment deadline, and notice that a Small Claims Court claim may follow if payment is not made. At Dar Paralegal Services, every demand for payment is prepared and signed by a licensed paralegal on firm letterhead.

Question 3

Is a demand letter legally required before suing in Small Claims Court?

Accepted Answer

No. Ontario's Small Claims Court does not require a demand letter before you file a claim. It is still usually worth sending one: it can resolve the dispute without a lawsuit, shows the court you acted reasonably, and can start the clock on interest. During your free consultation we will discuss whether a demand letter makes sense for your situation before you spend anything.

Question 4

Does a demand letter from a paralegal actually work?

Accepted Answer

Sometimes, and honesty matters here: no one can guarantee the other party will pay or respond, and outcomes depend on the facts of each case. What a professionally prepared letter does is show the other side that a Law Society licensed legal professional is involved and that you are prepared to file in Small Claims Court. If the letter does not get results, it becomes the foundation for your court claim, and we can represent you through that next step.

Question 5

What's the difference between a demand letter from a lawyer and one from a licensed paralegal?

Accepted Answer

In Ontario, both lawyers and licensed paralegals are regulated by the Law Society of Ontario, and a licensed paralegal is fully authorized to draft and send demand letters for Small Claims Court matters (claims up to $50,000). Dar Paralegal Services is a paralegal firm, not a law firm, and we are clear about that. For disputes above $50,000 or matters outside our scope, you will need a lawyer, and we will tell you that upfront.

Question 6

How much does a demand letter cost in Ontario?

Accepted Answer

Our flat fee is $199 + HST. That includes a demand letter drafted, reviewed and signed by a licensed paralegal on firm letterhead, up to 14 days of email communication with the other party, a free consultation, and one registered mail delivery attempt. There are no hidden charges for the letter itself. Court filing fees and disbursements are extra and only arise if you later decide to file a Small Claims Court claim.

Question 7

Is the consultation really free?

Accepted Answer

Yes. The consultation is always free, whether or not you go ahead with the letter, and whether your matter is big or small. If your matter is not something we can take on, we will tell you that at no charge and point you in the right direction.

Question 8

How quickly will my demand letter be sent?

Accepted Answer

Your letter is drafted within 72 hours or less of completing your retainer and intake. You review and approve the facts, the licensed paralegal signs it, and it goes out, including one delivery attempt by registered mail so there is a record the other party received it.

Question 9

Why is the letter sent by registered mail?

Accepted Answer

Registered mail creates a delivery record: proof of when the letter was sent and a signature or delivery confirmation at the other end. If the dispute goes to Small Claims Court, that record helps show the other party knew about your claim and had a chance to resolve it. One registered mail attempt is included in the flat fee, and we can also send the letter by email as part of the included communication.

Question 10

What happens during the 14 days of email communication?

Accepted Answer

For 14 days after your letter goes out, we handle email correspondence with the other party on your behalf. We answer their response, relay settlement offers to you, and keep a professional, documented paper trail. You stay in control: nothing is agreed without your instructions.

Question 11

Can you send a demand letter for money owed or an unpaid invoice?

Accepted Answer

Yes. Unpaid invoices and money owed are the most common reason clients need a demand letter. Whether it is a customer who will not pay for services rendered, an unpaid account, or a debt under an agreement, we prepare a formal demand for payment positioned as the step before a Small Claims Court claim of up to $50,000.

Question 12

Can you send a demand letter to a contractor?

Accepted Answer

Yes. Contractor disputes, such as deposits taken with no work done, incomplete or deficient work, or overbilling, are a core Small Claims Court matter. A demand letter to the contractor sets out what you paid, what went wrong, and what you are claiming. If it does not resolve, we also represent clients in contractor disputes in Small Claims Court.

Question 13

Can you demand repayment of a personal loan to a friend or family member?

Accepted Answer

Yes. Personal loans between friends or family are enforceable, though they are often undocumented, which is exactly where a carefully worded demand letter helps: it formally records the loan, the amount, and the repayment demand before any court filing. Bring whatever you have, such as e-transfers, texts, and emails, to your free consultation.

Question 14

Can you send a demand letter for a security deposit or a refund?

Accepted Answer

Yes, in many cases. Demands for the return of deposits or refunds, whether from a contractor, a seller, or a business, are typically Small Claims Court money claims we handle. One note: residential tenancy deposit issues in Ontario usually belong at the Landlord and Tenant Board rather than Small Claims Court, and we will confirm the right forum during your free consultation.

Question 15

Can you demand the return of personal property?

Accepted Answer

Yes. If someone is holding property that belongs to you, such as equipment, a vehicle, or goods you paid for, a demand letter for return of personal property (or its value, up to $50,000) is a recognized first step before a Small Claims Court claim for recovery of the property or damages.

Question 16

Do you handle breach of contract demand letters?

Accepted Answer

Yes. If the other side broke a written, verbal, or partly written agreement, whether they did not deliver, did not pay, or did not perform, a breach of contract demand letter sets out the agreement, the breach, and the compensation claimed, with a deadline to resolve it before a Small Claims Court claim is filed.

Question 17

How many days should a demand letter give the other party, 10, 15, or 30 days?

Accepted Answer

There is no single legally required deadline. Ten to 15 days is common, and the right deadline depends on your situation: the amount, the relationship, and how urgent the matter is. We set a reasonable, defensible deadline in your letter, because a deadline that is too short can undermine the letter and one that is too long invites delay. This is one of the things the paralegal decides with you during drafting.

Question 18

Is there a deadline for taking legal action on money owed in Ontario?

Accepted Answer

Generally yes. Ontario's Limitations Act, 2002 sets a basic limitation period of two years from when you discovered the claim, and some situations have different rules. Missing a limitation period can end your right to sue entirely, so if your dispute is more than a year old, do not wait. Contact us (or another licensed legal professional) promptly. The consultation is free.

Question 19

Who actually writes and signs my demand letter?

Accepted Answer

A licensed paralegal: Nauman Dar, licensed by the Law Society of Ontario. Every letter is prepared or reviewed, approved, and signed by the licensed paralegal and goes out on Dar Paralegal Services letterhead. This is not an automated letter generator. LSO rules require a licensee to review, approve, and sign every collection or demand letter, and that is exactly how our process works.

Question 20

What if I received a demand letter? Can you help me respond?

Accepted Answer

Yes. If you have received a demand letter about a Small Claims Court range dispute, do not ignore it. The deadlines in the letter and the risk of a court claim are real. We can review the letter, explain your options, and respond on your behalf. Start with a free consultation.

Question 21

What happens if the demand letter doesn't get results?

Accepted Answer

Then you have options, and you will not be starting from scratch. The letter and the documented 14 day correspondence become part of your evidence, and Dar Paralegal Services represents clients through the full Small Claims Court process: filing the claim, settlement conferences, and trial. We will give you a candid assessment of your next step and a clear quote before you commit to anything further.

Question 22

Can everything be done online?

Accepted Answer

Yes. The consultation, retainer signing, document exchange, and identity verification can all be completed remotely, and we serve clients across Ontario. The letter itself still goes out physically by registered mail (plus email), so distance is never an issue. ---

They're ignoring you. A legal demand letter is hard to ignore.

Sound familiar? Common reasons for a demand letter in Ontario

Unpaid invoices

Contractor disputes

Personal loans

Broken agreements

Property damaged or not returned

Paid, but not delivered

Why a formal demand letter changes the conversation

It's a formal legal demand

It builds your paper trail

It sets a deadline

It's a low-cost first step

A professional demand letter from a licensed paralegal. Not a template.

What clients say about Dar Paralegal Services on Google

Demand letter cost: one flat fee

How our demand letter service works: three steps

Free consultation

Conflict check & written retainer

Letter drafted & sent

If the demand letter doesn't resolve it, you're not starting over.

Already past the letter stage?

Demand Letter FAQs (Ontario)

Talk to a licensed Ontario paralegal today