Letter of demand in South Africa

When to send one

Send a letter of demand once a debt is due, you have asked at least once, and the debtor is stalling, disputing vaguely, or ignoring you. It is the formal step that turns "please pay me" into "pay by this date or face legal action". For some claims a written demand is a legal prerequisite - the Small Claims Court requires one before you can start proceedings, and many contracts require formal notice of breach before cancellation. Even where it is not compulsory, it is the cheapest pressure you can apply and it starts a paper trail a court will later want to see.

What it must contain

• Who you are and who owes you - full names and, for businesses, registered names
• Exactly what is owed and why: the invoice, contract, or agreement the debt comes from, with dates
• The precise amount, plus any interest you are entitled to claim
• A clear deadline to pay - commonly 7 to 14 days, and the Small Claims Court route requires giving the debtor at least 14 days
• What happens if the deadline passes: summons, judgment, and the costs that follow
• How to pay - banking details and a reference

Send it in a way you can prove: registered post, email with a read path, or delivery by hand with a signed receipt. A demand you cannot prove was received is barely a demand at all.

What happens after the deadline

If the debtor pays or proposes a payment plan, you have won without court. If not, the next step depends on the size of the claim. For claims of R30 000 or less, the Small Claims Court is designed for exactly this: it is cheap, relatively fast, and no attorneys are allowed to appear for either side, so you are not outgunned by a legal team. You hand in your demand, proof of delivery, and your evidence, and a commissioner decides the matter. For larger claims, a summons in the Magistrates' Court or High Court follows, usually through an attorney. If the debtor ignores a summons entirely, you can apply for default judgment, which opens the door to execution against their assets.

Prescription: the 3-year clock

Most ordinary debts in South Africa prescribe after 3 years under the Prescription Act. Once a debt has prescribed, it is legally unenforceable - you cannot successfully sue for it, and the debtor can raise prescription as a complete defence. The clock generally runs from when the debt became due. An acknowledgement of the debt by the debtor, or serving a summons, interrupts prescription; a letter of demand on its own does not stop the clock. The practical lesson: do not sit on old invoices. If a debt is approaching 3 years, act now or lose it.

Why a proper demand often gets paid without court

Most debtors are not refusing to pay - they are betting you will not follow through. A formal letter of demand changes that calculation. It shows the debt is documented, the deadline is real, and the next step is a summons with costs attached. It also signals that ignoring you now creates evidence against them later: a court sees a clear demand, a fair deadline, and silence. That is why a well-drafted demand, properly delivered, resolves a large share of debts within days. A vague WhatsApp message does not carry the same weight - the format is the message.

Getting one drafted

ProperSA drafts a letter of demand for R190, tailored to your debt and ready to send, with guidance on proof of delivery. If the matter escalates, you already have the first document a court will ask for.

Frequently asked questions