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Received a Letter of Demand?

Unpaid bills or debts will usually earn you a few reminder notices but eventually you might receive a Letter of Demand or Final Notice as a warning or threat of impending legal action.

Your options for action:

  • Offer a payment arrangement.

    A payment by instalments or lump sum payment with agreement by the credit provider in writing can stop the legal action.

  • Advise you have no means to pay.

    If you have no income, are unable to pay anything and have very few assets. They may view further legal action not worth pursuing. Centrelink benefits are protected income and can’t be taken in debt judgements.

  • Advise you would fight the claim in court.

    Seek legal advice if you wish to argue the matter in court. You may end up owing a lot more if unsuccessful.

  • If you do nothing ...

    While some ‘Letters of Demand’ are not followed up with actual legal action, you take a risk that action and further costs may result.

How you might Contest the debt

  • Is the debt too old?

    In certain cases a debt over six years old may not be recoverable. Contact Legal Aid for advice

  • Was there an unfair contract?

    If you were misled or forced in to signing the contract raise this with the credit provider and seek support from a financial counsellor for assistance

  • You may be 'judgement-proof'

    If you only have Centrelink income, and no significant assets, the court can not force you to pay anything.

Related Factsheets

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Key Contacts

Legal Aid Vic
Website: https://www.legalaid.vic.gov.au/
Phone: 1300 792 387

Consumer Action Law Centre
Website: http://consumeraction.org.au/about/contact/
Phone: 1800 466 477



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