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Late Payment Dispute Letter Template for Canada

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Key Requirements PROMPT example:

Late Payment Dispute Letter

"I need a Late Payment Dispute Letter for my software company to send to a client who has failed to pay three consecutive monthly service invoices totaling $15,000 CAD, with the latest invoice being 60 days overdue as of January 2025."

Document background
The Late Payment Dispute Letter is a crucial business document used across Canadian jurisdictions when formal communication is needed to address delayed or disputed payments. This document is typically employed when regular payment collection attempts have been unsuccessful or when there are specific disputes about payment terms, amounts, or timing. It serves as a professional means of documenting the payment issue, often as a precursor to legal action or formal debt collection processes. The letter must comply with Canadian federal regulations such as the Interest Act and provincial consumer protection laws, while clearly stating the dispute details, payment history, and proposed resolution. It's particularly important in maintaining professional relationships while pursuing payment, and can be used in both business-to-business and business-to-consumer contexts.
Suggested Sections

1. Sender Details: Full name, address, and contact information of the sender

2. Recipient Details: Full name, address, and contact information of the recipient

3. Date: Current date of the letter

4. Reference Line: Invoice/account numbers and other relevant reference information

5. Subject Line: Clear indication that this is a late payment dispute

6. Payment Details: Original invoice amount, due date, and current outstanding balance

7. Payment History: Timeline of payments made and communications to date

8. Dispute Statement: Clear statement of the dispute nature and any discrepancies

9. Request for Resolution: Specific actions requested from the recipient

10. Response Timeline: Deadline for expected response

11. Closing: Professional closing statement with sender's signature and title

Optional Sections

1. Interest Calculation: Include when claiming interest on late payments, showing calculation method and amounts

2. Previous Communications: Include when there has been significant prior correspondence about the dispute

3. Legal References: Include when specific laws or contract terms need to be cited

4. Third Party Authorization: Include when letter is sent by a representative or collection agency

5. Settlement Offer: Include when proposing a specific settlement or payment plan

6. Consequences Statement: Include when needed to outline potential legal or business consequences of non-payment

Suggested Schedules

1. Invoice Copies: Copies of all relevant invoices and billing statements

2. Payment Records: Documentation of any payments made and payment attempts

3. Communication Log: Chronological record of all relevant communications

4. Contract Excerpts: Relevant sections from contracts or agreements regarding payment terms

5. Interest Calculations: Detailed breakdown of interest calculations if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses




















Relevant Industries

Retail

Manufacturing

Professional Services

Construction

Technology

Healthcare

Financial Services

Real Estate

Wholesale Trade

Transportation and Logistics

Consulting Services

Education

Telecommunications

Relevant Teams

Accounts Receivable

Finance

Legal

Credit Control

Collections

Treasury

Operations

Customer Service

Administration

Risk Management

Relevant Roles

Accounts Receivable Manager

Credit Controller

Financial Manager

Collection Specialist

Business Owner

Account Manager

Finance Director

Credit Manager

Billing Coordinator

Financial Controller

Operations Manager

Treasury Manager

Legal Counsel

Accounts Administrator

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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