Louisiana Demand Letter

Introduction

Key Things to Know

1. 1

   Louisiana's open-account statute, R.S. 9:2781, ties recovery of attorney's fees on almost any unpaid account, including a bill for professional services like legal or medical care, to a 30-day written demand correctly setting forth the amount owed; skip the letter and citation and service of a lawsuit itself counts as the demand, but the debtor can still avoid fees by paying within 10 days of service in city court or 15 days in other courts.

2. 2

   State your demand in specific numbers. Name the exact amount owed, the account, invoice, or contract it comes from, and a firm deadline to pay or act.

3. 3

   Louisiana's consumer protection law, the Unfair Trade Practices and Consumer Protection Law, does not require a pre-suit demand letter before you sue, but a private claim under R.S. 51:1409 must be filed within one year of the transaction or act, an unusually short deadline.

4. 4

   If your claim involves a check dishonored for nonsufficient funds, Louisiana requires a written demand sent by certified or registered mail, substantially in the statutory notice form at R.S. 9:2782(C)(1), giving the drawer 15 working days from receipt to pay before you can sue for two times the check amount, but not less than $100, plus attorney's fees and court costs.

5. 5

   Never threaten arrest, jail, or criminal prosecution to collect a civil debt. R.S. 9:3562 limits a creditor's contacts with third parties and, after a debtor's written cease-contact notice, bars contacts designed to threaten action not otherwise permitted by law; collection misconduct not covered there can still expose the sender to a tort claim under Civil Code art. 2315.

6. 6

   Louisiana calls its statute of limitations prescription: ten years to sue on a written or oral contract (Civil Code art. 3499), three years on an open account (art. 3494(4)), and two years for property damage (art. 3493.1).

7. 7

   Louisiana's small claims division hears claims up to $5,000, exclusive of interest, court costs, attorney's fees, or penalties, but a losing party has no right to appeal unless a party requests transfer to the regular civil docket within 10 days of receiving the citation (R.S. 13:5202(A), 13:5204(B)).

Louisiana Requirements for Demand Letter

• Open Account 30-Day Fee Demand

  La. R.S. 9:2781 lets a creditor recover reasonable attorney's fees on almost any past-due open account, including a bill for professional services such as legal or medical care, once the debtor fails to pay within 30 days after written demand correctly setting forth the amount owed. The claimant only has to show the demand was sent, not that the debtor received it.

• First-Class Mail Is Enough for an Open Account Demand

  Under R.S. 9:2781(B), receipt of the written demand is not required, only that the claimant sent it, and first-class mail to the debtor's last known address is sufficient evidence of demand for the open-account fee statute, unlike the certified or registered mail the state's dishonored-check demand requires.

• Paying Within 10 or 15 Days of Suit Avoids Fees

  If a creditor relies only on citation and service of the lawsuit as its written demand under R.S. 9:2781, the debtor can still avoid owing attorney's fees by paying the amount claimed within 10 days of service in a city court or 15 days of service in any other court.

• Dishonored-Check Demand Has Its Own Statutory Form

  La. R.S. 9:2782(C)(1) requires a demand on a check dishonored for nonsufficient funds to be sent by certified or registered mail and to follow substantially the notice form the statute itself sets out, stating the check number, date, bank, payee, and the 15 working days the drawer has from receipt to pay. A general demand letter should not imitate that form; the statutory notice is a separate document.

• Bad-Check Civil Penalty

  If the drawer of a check dishonored for nonsufficient funds does not pay within 15 working days after receiving the statutory demand, La. R.S. 9:2782(A) lets the payee recover two times the check amount, but not less than $100, plus attorney's fees and court costs, on top of a service charge of up to $25 or 5 percent of the check, whichever is greater.

• No LUTPA Pre-Suit Demand, But a One-Year Deadline

  Louisiana's Unfair Trade Practices and Consumer Protection Law requires no pre-suit demand letter; R.S. 51:1409(B) only requires that the plaintiff's attorney mail a copy of the petition to the attorney general after filing suit. A private claim under this law must be filed within one year of the transaction or act, under R.S. 51:1409(E).

• Louisiana Prescription Periods

  Louisiana gives ten years to sue on a written or oral contract (Civil Code art. 3499), three years to sue on an open account (art. 3494(4)), and two years to sue for property damage (art. 3493.1).

• Floating Legal Interest Rate

  La. R.S. 13:4202(B)(1) sets the judicial interest rate at 3.25 percentage points above the Federal Reserve Board's discount rate as published in the Wall Street Journal on the first business day of October, recalculated and published annually by the Commissioner of Financial Institutions.

• Small Claims: $5,000 Limit, No Right to Appeal

  Louisiana's small claims division of a city court hears claims up to $5,000, exclusive of interest, court costs, attorney's fees, or penalties (R.S. 13:5202(A)). A losing party has no right to appeal unless a party requests, in writing, transfer to the regular civil docket within 10 days of receiving the citation (R.S. 13:5204(B)).