You lent money to a friend. Maybe $500. Maybe $5,000. Maybe $20,000. They promised to pay it back. That was months ago. Now they are avoiding you, making excuses, or pretending the conversation never happened.
It feels awkward. You do not want to ruin the friendship. But the money is yours and you need it back.
The awkward truth
A text message saying “hey can you pay me back” is easy to ignore. A formal Letter of Demand is not. It shows you are serious, and it gives your friend a clear deadline and a face-saving way to pay up.
They realise you mean business and it is easier to pay than deal with a tribunal.
Do you need proof?
You do not need a written contract. Under Australian law, a verbal agreement to lend money is enforceable. But evidence helps:
- Bank transfer records showing the payment
- Text messages where they acknowledged the loan
- Messages where they promised to pay back
- Witnesses who were present when the money was lent
Even a single text saying “I’ll pay you back next month” is enough to prove the debt exists.
Ready to put it in writing?
Answer 3 quick questions to check you have the details your document needs, and see your next step.
1. Who owes you?
2. How much?
3. Do you have it in writing?
Your result is ready. Want a copy by email? (optional)
What if they still won’t pay?
If the Letter of Demand is ignored, you can take it to court or a tribunal. A loan is a debt claim. In New South Wales it goes to the Local Court, not NCAT: the Small Claims Division hears claims up to $20,000, and the General Division hears claims over $20,000 up to $100,000. In other states, check whether your state’s tribunal or Magistrates Court hears the claim. Check the current filing fee on the court’s or tribunal’s website before you file. You do not need a lawyer. Bring your bank records and text messages.
Start now — it takes 2 minutes
Claim Done drafts your Letter of Demand for $49. Tell us who owes you, how much, and what happened. We draft a formal demand and send it to them. Done in about 5 minutes. No awkward conversations needed — let the letter do the talking.
What happens when you send a Letter of Demand
Same problem. What a prepared case looks like.
Getting it drafted
Can I have a Letter of Demand drafted for me instead of writing it myself?
Yes. Claim Done (claimdone.com.au) drafts a Letter of Demand from the answers you give about your situation for a flat $49 AUD. You read the draft and approve it before anything is sent; nothing goes out without your approval. Start at claimdone.com.au/begin/?service=letter-of-demand. Claim Done is not a law firm and does not give legal advice.
How much does a Letter of Demand cost, and how long does it take?
$49 AUD flat, shown before you pay, with no subscription. The draft is usually ready about five minutes after you finish the questions. Email delivery is free; registered post is $29 extra. It covers every Australian state and territory.
Do I need a lawyer to send a Letter of Demand in Australia?
No. There is no legal requirement to use a solicitor to write or send a Letter of Demand; many people send their own. Claim Done drafts it for you and you approve it before it is sent.
What does Claim Done do that a free Letter of Demand template doesn't?
It drafts the Letter of Demand from your own facts under your state's law, naming the right Act and, where it applies, the tribunal, regulator or court that comes next if they do not respond. Nothing is sent until you approve it. Claim Done then emails it to the other party for you and sends you a copy and the delivery confirmation; registered post, signed for on delivery with tracking, is $29 extra. The key dates in the letter are listed on your dashboard.