Arizona Demand Letter
This letter applies Arizona's double-damages bad check statute, its small claims court's bar on attorneys, and its contract fee-shifting, interest, and limitations rules.
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What is this demand about?
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Introduction
Arizona has no statutory pre-suit notice requirement under its Consumer Fraud Act, A.R.S. §§44-1521 to 44-1534, but a different statute changes what a demand letter can do if you were paid with a check that bounced. Under A.R.S. §12-671(A), a person who wrote a dishonored check with intent to defraud is liable to you for double the amount of the check, or $50, whichever is greater, plus costs and reasonable attorney's fees. Written notice sent by certified mail, return receipt requested, to the drawer at the address shown on the check starts a 12-day clock under A.R.S. §12-671(C) and (E); if the check is not paid within that window after the drawer receives your notice, that failure is prima facie evidence of the drawer's intent to defraud. A demand letter also has value beyond any single statute: it states clearly what you are owed and creates a paper trail a judge will want to see, and in a contract dispute Arizona's fee-shifting statute, A.R.S. §12-341.01, can make a written settlement offer in your letter the basis for recovering attorney's fees later. If your dispute involves a security deposit or a final paycheck, Arizona applies separate rules to those claims, covered on their own demand letter pages rather than repeated here. DocDraft builds your Arizona demand letter from your facts and your deadline, with attorney review available before you send it.
Key Things to Know
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Arizona's Consumer Fraud Act has no pre-suit notice requirement, but a demand letter for a dishonored check can double your recovery: A.R.S. §12-671(A) makes a drawer who wrote the check with intent to defraud liable for double the check amount, or $50, whichever is greater, plus costs and attorney's fees, and written notice sent by certified mail to the address shown on the check starts a 12-day clock under §12-671(C) and (E) that helps prove that intent.
- 2
State your demand in specific numbers. Name the exact amount owed, the contract, invoice, or check it comes from, and a firm deadline to pay or act.
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If your dispute involves a contract, Arizona's fee-shifting statute, A.R.S. §12-341.01, lets a court award the successful party reasonable attorney's fees in any contested contract action, and a written settlement offer in your letter can make you the successful party for fees if the judgment you obtain is no better for the recipient than your offer.
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Arizona's Small Claims Division of the Justice Court hears claims up to $5,000, exclusive of interest and costs (A.R.S. §22-503(A)), and bars attorneys from appearing unless both sides agree in writing before the hearing (§22-512(B)(7), (D)).
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Mind Arizona's statute of limitations: six years to sue on a written contract executed in Arizona (A.R.S. §12-548(A)(1)), three years on an oral contract or an open account (§12-543(1)-(2)), and two years for injury to or taking of personal property (§12-542(3)-(4)).
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Arizona's default interest rate is 10 percent a year on an obligation other than medical debt unless your written contract sets a different rate, under A.R.S. §44-1201(A)(1)-(2); medical debt carries a lower capped rate. Post-judgment interest follows a separate formula under §44-1201(B) that is also capped at no more than 10 percent a year.
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Keep the tone firm and factual, not threatening. Do not threaten arrest, jail, or criminal prosecution to collect a civil debt. Separately, Arizona's collection-agency licensing law, A.R.S. §32-1001(2), does not reach a creditor collecting its own debt under its own name.
Key decisions before you file
Before you file a Demand Letter in Arizona, a few decisions shape the document: which option to choose and what each one means. The Demand Letter guide walks through them.
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Arizona Requirements for Demand Letter
Bad Check Doubles Your Damages
A.R.S. §12-671(A) makes a check's drawer liable to the holder for double the amount of the check, or $50, whichever is greater, plus costs and reasonable attorney's fees, where the check was written with intent to defraud.
12-Day Certified Mail Notice for a Bad Check
A.R.S. §12-671(C) and (E) let you send written notice by certified mail, return receipt requested, to the drawer at the address shown on the check; if the drawer fails to pay within 12 days after receiving that notice, the failure is prima facie evidence of intent to defraud. Sending this notice is not mandatory, but it is the standard route to that evidence.
No Consumer Fraud Act Pre-Suit Notice
Arizona's Consumer Fraud Act, A.R.S. §§44-1521 to 44-1534, has no pre-suit demand or waiting-period step in its text, and its civil penalties under §44-1531 and §44-1532 are recovered by the Attorney General for the state, not by a private consumer.
Attorney's Fees in Any Contract Dispute
A.R.S. §12-341.01(A)-(C) lets a court award the successful party reasonable attorney's fees in any contested action arising out of a contract, with no presentment step or minimum amount required. A written settlement offer stated in the letter can make the offeror the successful party for fees if the eventual judgment is no better for the recipient than the offer.
Small Claims Bars Attorneys Absent Agreement
Arizona's Small Claims Division of the Justice Court hears claims up to $5,000, exclusive of interest and costs, under A.R.S. §22-503(A). An attorney may not appear in the case under §22-512(B)(7) unless both parties stipulate in writing before the hearing under §22-512(D).
Statute of Limitations by Claim Type
Arizona gives six years to sue on a written contract executed in Arizona under A.R.S. §12-548(A)(1), three years on an oral contract or an open account under §12-543(1)-(2), and two years for injury to or taking of personal property under §12-542(3)-(4).
Statutory Interest Rate
A.R.S. §44-1201(A)(1)-(2) sets interest at 10 percent a year on a loan, indebtedness, or obligation other than medical debt, unless a written contract sets a different agreed rate. Post-judgment interest follows a separate, capped formula under §44-1201(B).
First-Party Creditors Outside the Collection Agency Act
A.R.S. §32-1001(2)(a)-(b) defines a covered collection agency as a third-party collector, or a creditor that uses a name other than its own so it looks like a third party is collecting. A creditor collecting its own debt under its own name is not bound by §32-1051's specific prohibitions on licensees.
Never Threaten Arrest or Prosecution
Never state or imply that the recipient could face arrest, jail, or criminal prosecution to pressure payment of a civil debt. Arizona's collection-agency statute, A.R.S. §32-1051, does not list a criminal-threat prohibition by name, so leave any such statement out of the letter entirely.