Formal Demand Letter for Payment
Republic of the Philippines · Template v0.2.0
August 30, 2026
Juan Dela Cruz 20 Kalayaan Avenue, Quezon City 1100 juan@example.com
SUBJECT: FORMAL DEMAND FOR PAYMENT — Loan Agreement and Promissory Note (LOAN-2026-0115)
Dear Juan Dela Cruz:
Basis of the demand
This is a formal extrajudicial demand by Maria L. Santos for payment of a due and demandable obligation arising from the loan or credit accommodation identified as Loan Agreement and Promissory Note, dated January 15, 2026, reference LOAN-2026-0115. The Creditor released the agreed loan proceeds and the final unpaid installment became due under the signed repayment schedule.
Payment became due on August 1, 2026. The Creditor performed or was ready and able to perform the reciprocal obligations required before payment: PHP 100,000 was transferred to the Debtor on January 15, 2026 under transfer reference BPI-0115-7781. This demand is intended to place the Debtor in delay to the extent Article 1169 of the Civil Code requires extrajudicial demand and to preserve the legal effect of written demand under Article 1155.
Reconciled claim as of the letter date
Original principal or invoiced amount: ₱100,000.00.
Less payments and credits: ₱25,000.00. Application: PHP 25,000 received on July 1, 2026 and applied to principal, after the interest then due had been paid in full on June 30, 2026.
Outstanding principal: ₱75,000.00.
Accrued simple interest: ₱739.73, calculated on ₱75,000.00 at 12% per year for 30 actual days from July 31, 2026 through August 30, 2026, using actual days divided by 365 and no compounding. Written basis: The unpaid principal bears simple interest at twelve percent per year using actual days divided by 365. The rate and resulting charge remain subject to mandatory law and equitable reduction if unconscionable.
Other itemized charges: ₱500.00. Basis: Documented courier and bank-return cost expressly recoverable under Section 8 of the signed Loan Agreement.
TOTAL AMOUNT DEMANDED AS OF AUGUST 30, 2026: ₱76,239.73.
Supporting records: Signed Loan Agreement, bank release record, repayment schedule, payment ledger, and prior receipts. The Debtor may request a legible copy or corrected reconciliation using the contact below.
Demand, deadline, and payment
The Creditor hereby demands cleared payment of ₱76,239.73 no later than September 9, 2026. Payment must be made by bank transfer to the Creditor's account stated in the attached signed payment instruction. Before paying, the Debtor may obtain a same-day payoff confirmation or corrected ledger from the Creditor at the notice details stated in this letter.
Interest continues to accrue after August 30, 2026 at the stipulated rate of 12% per year on the unpaid principal until full payment, so the payoff amount on the actual payment date will be higher than the total stated above. The Creditor also reserves legal interest on interest due from the time it is judicially demanded (Civil Code Article 2212).
Acceptance of any partial payment is without prejudice to the unpaid balance and to all accrued and accruing interest and charges, which are expressly reserved and are not presumed paid (Civil Code Article 1176). Unless the agreement provides otherwise, a payment is applied first to interest then due (Civil Code Article 1253).
If full payment by the deadline is genuinely impossible, the Creditor will consider—but is not required to accept—a concrete written proposal received before the deadline. Parameters: A concrete written proposal identifying down payment, dates, amounts, and security may be considered before the deadline without waiving the full claim. No extension, compromise, novation, waiver, or installment arrangement exists unless the Creditor accepts a complete proposal in a signed writing.
A payment is credited only when received in cleared funds and will be acknowledged in an updated ledger and receipt.
Dispute and correction channel
The Creditor is not aware of a specific unresolved dispute about liability, performance, payments, credits, or calculation. If the Debtor disputes any item, the Debtor should identify the exact item, factual and contractual basis, requested correction, and supporting record in writing before the deadline.
This letter does not rely on an undocumented earlier demand. Its delivery evidence should be retained with the claim file.
A good-faith request for verification does not authorize concealment or delay, and it does not waive the undisputed portion. The Creditor will review a specific, documented objection and correct a verified ledger error promptly.