How does a formal notice of default work?
If you have an agreement with a person or company and it does not respect the terms, you can send him a formal notice. It is’acts of’A legal act that invites a party to fulfill its obligations. The most common case concerns the non-payment of debts. So what do you need to know about the process of debt collection?’a formal notice of default ?
What is the purpose of a formal notice ?
L’sending a’a letter of demand does not produce a binding effect on the opposite party. Also, the creditor cannot take advantage of the letter of credit’a right after receiving the letter. It is’In fact, it is a matter of’And when we talk about digital here, we are not talking about classified ads on the Internet, or an order to pay addressed to a natural or legal person.
C’That is why’You have to see this letter as an ultimatum. As a general rule, the’sending out mailings’a formal notice aims to the settlement of the unpaid.
In some cases, the receipt of this letter can worsen the debtor’s case. In fact, in case of recovery, interest or damages are applicable. In cause, the damage produced by the delay.
The formal notice is also a legal document that can serve as evidence. C’is d’The letter must be written according to precise standards. In case of dispute, the creditor can prove his good faith by presenting a copy of the formal notice.
Be careful with the demand letter
The writing of a’a demand letter must respect rules of form and content. The method of notification is also to be taken into account.
What form should a formal notice take ?
The demand letter must respect a precise form. The following mentions are mandatory:
- the date on which the letter was written,
- the exact coordinates of the creditor and the debtor,
- a brief summary of the nature of the dispute,
- a statement of the creditor’s demands,
- a letterhead with the words “mise en demeure,
- a deadline for payment,
- the signature of the’sender.
It must be emphasized that the choice of the deadline for the settlement of unpaid debts must be reasonable and realistic while being imminent in order to force the debtor to take action’action. We recommend that you set a deadline of between 7 and 15 days.
It is important to know that the’lack of’If you do not respect one of these rules, it is detrimental to the creditor. Indeed, the judicial authorities only take into account the formal notices that have been written perfectly. They are particularly fastidious on this point.
How to present the contents of the letter’a formal notice of default ?
The tone used in a demand letter must be courteous and follow the codes of ethics’an administrative letter. The The use of formal address is required as well as’a certain courtesy. It is not’s letter of formal notice’It is a legal obligation, but not a legal requirement’It is a social convention that legal and administrative mail should be more precise than e-mail’a solemn tone.
You must not’You don’t need to use an aggressive tone to intimidate since the demand letter itself already constitutes psychological pressure on the debtor. Moreover, one word too many in the letter can turn against you if the dispute goes to court.
Who can write a formal notice ?
If you are at the’if you are comfortable with the administrative terms, you can write the letter. On the other hand, if the stakes are very high or if you do not have the means to do so, you can send a formal notice’If you do not have the right words, it is better to delegate the drafting of the letter to a legal professional such as a lawyer. This will allow you to maximize your chances in case of legal proceedings.
By which channel to send the letter ?
You have the possibility of notifying a formal notice by the channel which seems to you the most judicious. Nevertheless, it is strongly recommended to send a formal notice of default’have the proof that the letter has been received. C’It is for this reason that we advise you to always use a registered letter It is best to use a registered letter Compared to an electronic mail.
In fact, a formal notice by e-mail is not a legal obligation’The deadline does not have the same psychological impact as the other deadlines’a letter by post. Today’Today, we are assailed by hundreds of e-mails. The other party may not take an e-mail asking for payment of outstanding debts seriously.
Another important point is the proof of receipt. E-mails do not have a’acknowledgement of receipt. With a registered letter, the signature is mandatory.
The creditor is therefore certain that the debtor has received the letter.
In some cases, the letter must be sent by a bailiff. It s’The letter must contain the following information, in particular in the case of disputes concerning the non-observance of rental or lease contracts.
If you want to send the letter electronically, you can use an online registered letter through the Post Office. This is only possible if both parties have a written agreement’a digital identity.
When to send a formal notice ?
The formal notice is regulated by the law. Since the letter of formal notice puts pressure on the debtor, you cannot use it as a means of communication’to be sent by registered mail. Here are the conditions to be met to carry out a formal notice.
The letter must be addressed in France
The first condition to send a letter of formal notice is to send a letter of cancellation’geographical order. There is no’acts as an incentive’a procedure that is governed by the Civil Code and not by European or international laws. Thus, your debtor must necessarily reside in France.
S’it is at the same level as the contract’If you are a foreigner, you must have a head office, an office, a house or an apartment on the national territory.
There is evidence that the other party owes you money’money
You should not send a notice of default if you cannot prove that the other party owes you money’you are owed money’money. If not, the other party may counter-attack with a lawsuit.
C’That’s why’it is necessary You should give a figure and rely on documents such as contracts or invoices. An exchange of letters is also an excellent way to prove the claim. The electronic invoice is highly recommended.
There must necessarily be a delay in payment
The fact that’a third party owes you money’If the delay in the payment of the money does not justify the launch of a new service’a formal notice of default procedure. The letter of formal notice only comes into play if the debtor does not’has not respected his commitment to pay. If the time frame that’he has communicated on the contract or the invoice is exceeded.
S’it s’act of’If the debtor has not respected his commitment to pay, he has to take into account the prescription period. It s’acts of’There is a deadline beyond which you can no longer attempt any legal action against the other party. The delay is 24 months if the debtor is a private individual and 5 years if the debtor is a company’s’acts of’a company.
The debtor must be solvent
Always send the letter of default to a solvent debtor. If the latter is a professional or a company, it is necessary to check if it is in a situation of suspension of payments. If it’If this is the case, then you cannot claim the payment of a fee from him’unpaid.
Indeed, the cessation of payment occurs when the debtor is not in good standing’company can no longer meet its expenses. All debts are then frozen. In this case, you don’t have to prove that you have a broadband connection’You don’t have to’You have no other choice than to turn to the judicial representative of the company’company.
An individual can also declare himself insolvent if he is not able to pay his bills’it can no longer honor its debts.