demand letter

Dear Sir/Madam:

Good day! May I request for your advice regarding a demand letter I received by email this 20 November 2010.

I have a loan from a former friend last July 2010, on 2 instances (1st-cash loan P5500; 2nd-use of her international credit card for my payment due on tuition fee P8000) which I failed to settle inasmuch as I was out of work from July 2010 till 3rd week of September. On the 1st few months after the loan, I requested for consideration. However, instead of the consideration/s, on countless times I received text messages and calls, even at wee hours from her daughter or 'boy' asking me to pay. I had another loan (with interest) with a certain friend of her but all transactions coursed thru her, with issued postdated checks of my husband. On the last payment (15 October 2010), we had to replace the check for cash, due to my husband's account closure. Instead of returning our check, she instructed her 'boy' not to sign receipt of the money, which forced me to mark the Acknowledgement Receipt "refuse to sign receipt of money" with date/time. Todate, she has not returned our check but rather stated she will only give it the moment I complete my payment/s with her.

In view of this, I was furious and wrote her an email. This started the exchange of emails, in which I also demanded for her payment of money I had given her more than decade/s ago. Some she denied, another she acknowledged. However, in the demand letter, she did not state this but only demanded for me to pay the above mentioned amounts on or before 30 nov. with interests. And please note, the P8000, she demands me to pay it in pounds.

I hope you can enlighten me on the next step I can take. Thank you so much.

if there is a real acknowledgment of some of the previous debts in the email, then you can deduct these amounts from what you owe her under the principle of compensation. the rest you will have to pay to her.

Thank u for your reply. Yes, there was acknowledgement for one of her loan. However, the amount is not the same as I have in my mental record. On the interests she added on the principal amount, can i dispute it because she is seeking unjustified amounts? For loan she can produce evidence of interest, I am willing to pay.

One more thing, should the demand letter also be replied formally?

Thank you again.

if you have no written agreement as to interest, then none is chargeable. on the other hand, if you used her credit card, it can be argued that there is an implied contract that you will pay for charges if you do not pay on time.

just reply and be courteous.

Thank you, Sir! I will follow your advice.