A Demand Notice is a formal notification to an individual or a company from another individual or a company. This letter includes a certain type of demand from the sender to the receiver and it indicates towards the fact that the receiver in fact agreed to meet with the demand of the sender when it’s required.
Introduction to the Demand Notice for Payment:
As you can understand that when a person holds a credit account in a bank, this means that he doesn’t have any funds in the bank that he deposited but the bank gives credit to the account holder and the account holder is required to return the credit with certain percentage of interest i.e. 5% or 10%. This usually happens at the start of each month that the bank sends a formal notification letter to the account holder and asks him to pay for the previous month credit expenses and charges. This formal notification letter by the bank to the account holder is known as the demand notice for payment.
When a Bank Demands for Payment from Account Holders:
There are many situations in which a bank can ask for payment to the account holders but the most common situation is the credit account in which the account holder uses credit given by the bank and as the month is over, the bank notifies the account holder that he is required to pay for the credit charges and interest rate for using the credit given by the bank. Another situation is when the bank gives loan or mortgage loan to an account holder and as the date of payment comes close, the bank notifies the account holder or debtor about the upcoming payment that the debtor is required to make. In the same manner, the bank can demand the payment for a vehicle lease i.e. car or commercial vehicle which a person got on lease from the bank and he is required to make monthly lease payments within 7 days after receiving formal demand notice from the bank. It depends on each bank and type of payment that how much time the bank gives to the account holder for making the payment but usually it’s at least 7 days.
Key Elements to include in the Demand Notice for Payment:
- Name of the bank with complete address
- Name of the person who is sending the notice with designation in the bank
- Name of the account holder with complete address
- Details of the account
- Date when the notice is being sent
- Details of the payment that the bank is demanding from the account holder
- Details of each transaction in the past month in the account of the account holder
- Amount that the bank wants the account holder to pay to the bank with capital credit installment and interest rate
- Duration in which the account holder is required to make the payment
- Signature of authorized person on the notice
Here is preview of a Free Sample Demand Notice for Payment created as Fill-able PDF Form,
Here is download link for this Demand Notice for Payment,