They were fired up at the start. Signed the 12-week agreement, paid the first few instalments, showed up. Then life got busy, sessions were skipped, and the direct debits started bouncing. Now they’ve stopped replying, and you’re out $1,500 for a program you’ve planned, scheduled and held time for.
Trainers, coaches and consultants deal with this constantly. Here’s how to stop absorbing the loss.
A program agreement is a contract
If they signed up for a fixed-term program with a set fee, they’ve agreed to pay for the whole thing, not just the weeks they felt like turning up. That’s true whether it was a signed PDF, a click-to-accept online form, or a clear email exchange. The fact they stopped attending doesn’t cancel the debt.
The one thing to check: your cancellation terms. If your agreement lets them cancel with notice, they owe you up to the end of the notice period. If it’s a fixed commitment with no early exit, they owe the balance. Either way, they owe something.
What about the Australian Consumer Law?
The ACL protects consumers against unfair contract terms in standard-form contracts. A term that says “pay for 12 weeks no matter what” is generally enforceable if it’s clear and reasonable. What’s not enforceable is a huge penalty or a term hidden in fine print. Keep your demand proportionate: the actual balance owing, not a punitive figure.
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)
Direct debit dishonours
Bounced payments don’t cancel the agreement. Most direct debit terms make the client liable for dishonour fees too. Check your provider’s terms and include those fees if they apply.
The Letter of Demand
A Letter of Demand puts it in writing that this is a debt, not a favour. It should:
- Reference the program agreement and its start date
- List payments received and instalments missed
- State the balance owing (and any dishonour fees)
- Cite the cancellation terms and why the balance is still due
- Give a 14-day deadline and warn of a small claims application with costs
A formal letter gives the client a deadline and a record.
Why you can’t let it slide
If you let one client walk away from $1,500, you’ll let the next one too. Over a year, that’s $10,000 or more in lost income. Your program has value. Treat it that way.
If they still don’t pay
Amounts like this go to VCAT, QCAT, the Local Court in New South Wales or your state’s small claims court for a modest fee, no lawyer needed. Bring the agreement, the payment history and your messages. Cases with a signed agreement and clear attendance records are straightforward.
Claim Done drafts your Letter of Demand for $49. Done in about 5 minutes. You approve it before it is sent.
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.