Getting Paid
Letter of Demand (Overdue Payment)
An escalating overdue-payment series ending in a formal letter of demand, the legal prerequisite before a Small Claims Court summons, with the prescribed mora interest claim. SA has no Security of Payment Act, so this rests on the contract, the Small Claims Court Act and the Prescribed Rate of Interest Act.
Medium risk
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When to use this
- •An invoice is past its due date and reminders have been ignored
- •You want the paper trail required before a Small Claims Court summons
- •You need to claim the prescribed mora interest on a debt