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Letter before Action - Unpaid Loan

Demand for Immediate Payment

A letter before action relating to unpaid loan and a demand for immediate repayment by the Company.

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Document Description

The document titled 'Letter before Action - Unpaid Loan' is a formal letter that serves as a demand for immediate repayment of a loan. It is addressed to the recipient, who is referred to as the 'company'. The letter is sent by the lender, referred to as 'account job company', and it outlines the breach of the loan agreement by the company.


The letter begins with the sender's information, including their job title, company name, and address. It is sent to the recipient via registered post and email. The current date is also mentioned.


The sender addresses the recipient as 'dear title last', indicating a formal tone. They state that they are making a claim against the recipient for breaching the loan agreement. The loan agreement, referred to as the 'loan agreement', was made between the company (as the borrower) and account job company (as the lender).


The loan agreement specifies the following terms:

1. Maturity Date: The loan is due x months from the drawdown date, which is mentioned as 'date'.

2. Interest Rate: The loan carries an interest rate of rate% per annum. In case of default, the interest rate increases to rate% per annum on the outstanding loan.


The sender asserts that the company has failed to repay the loan, thereby breaching the loan agreement. They demand immediate repayment of the outstanding loan amount, along with the accrued interest, which is stated as 'currency outstanding'.


The purpose of the letter is to inform the recipient that if full repayment of the outstanding amount is not made within z days from the date of the letter, legal proceedings will be initiated against the company without further notice. The sender also clarifies that they have not waived any contractual rights and reserve the right to pursue all legal and equitable remedies against the recipient. They explicitly state that all rights to civil and criminal proceedings are reserved.


The letter is signed by the sender, providing their first and last name, along with their job title and company name.

How to use this document?

Guidance for using the 'Letter before Action - Unpaid Loan':


1. Review the document: Familiarize yourself with the content of the letter, ensuring that you understand its purpose and the claims being made against the recipient.

2. Verify the loan agreement: Refer to the loan agreement mentioned in the letter to confirm the terms and conditions agreed upon by both parties.

3. Assess the outstanding amount: Calculate the outstanding loan amount, including any accrued interest, to determine the exact sum that needs to be repaid.

4. Prepare repayment details: Gather the necessary information, such as the account name, account number, bank name, and swift code, to provide the recipient with the means to make the repayment.

5. Set a deadline: Determine the number of days within which the repayment must be made. Ensure that the deadline is reasonable and allows sufficient time for the recipient to respond.

6. Send the letter: Deliver the letter to the recipient via registered post and email, as specified in the document. Keep records of the delivery for future reference.

7. Monitor the response: Track the recipient's response within the specified timeframe. If the repayment is made in full, ensure that it is properly documented.

8. Initiate legal proceedings if necessary: If the recipient fails to make the repayment within the given timeframe, consult with legal counsel to initiate legal proceedings against the company.

9. Preserve your rights: Throughout the process, maintain records of all communication and actions taken. Consult with legal experts to ensure that your rights are protected and that you pursue all available legal remedies.

10. Seek professional advice: If you encounter any complexities or uncertainties during the process, seek professional advice from legal experts or financial advisors to ensure that you navigate the situation effectively and in compliance with applicable laws and regulations.

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