Texas Demand Letter Template: Requirements, 30-Day Fee Rule and DTPA Notice

Is a demand letter legally required in Texas?

Not for most lawsuits. It is required before a consumer suit under the Deceptive Trade Practices Act (60 days' written notice) and before suits against insurers under Insurance Code Chapter 541 or for weather damage under Chapter 542A (61 days). For contract and debt claims it is optional, but it is how you present the claim, which attorney's fees depend on.

Texas practice treats the demand letter as the first piece of evidence in the case. It fixes the date the other side learned of the claim and the amount you asked for, both of which matter later: the 30-day window for attorney's fees under Chapter 38 and the 180-day prejudgment interest clock run from receipt of a written claim.

A justice court small claims case has no demand prerequisite, and a demand letter never replaces the deadline to sue. If limitations are about to expire, file first: even the DTPA and Insurance Code notices are excused when suit must be filed to beat limitations.

How does a demand letter affect attorney's fees in Texas?

For claims on an oral or written contract, rendered services, performed labor, furnished material or a sworn account, fees are recoverable only if the claimant is represented by an attorney, presented the claim to the other party, and was not paid the just amount owed within 30 days (Tex. Civ. Prac. & Rem. Code § 38.002).

Presentment can be oral, but a dated letter with proof of delivery is the only presentment that proves itself. Since the 2021 amendment, fees can be recovered from an "individual or organization", which brings LLCs, partnerships and other entities in alongside corporations; governmental entities, religious and charitable organizations are excluded (§ 38.001).

The trap is the excessive demand. Texas courts can deny fees to a creditor who insists on more than is owed and refuses a tender of the correct amount (Findlay v. Cave, 611 S.W.2d 57 (Tex. 1981)). Itemize the amount, leave out charges the contract does not allow, and invite the other side to pay the undisputed part.

What does a DTPA notice letter have to say, and how long must you wait?

At least 60 days before filing, the consumer must advise the business in writing, in reasonable detail, of the specific complaint and the amount of economic damages, mental anguish damages and expenses, including attorney's fees reasonably incurred (Tex. Bus. & Com. Code § 17.505).

During the 60 days the business may ask in writing to inspect the goods and may make a written settlement offer. An offer the consumer rejects can later cap the damages if the court finds it was substantially the same as, or more than, what the jury awards. A defendant that did not receive the notice can file a plea in abatement; the suit then waits until 60 days after proper notice is served.

Put a number on each category in the letter. A notice that leaves out the amounts invites a plea in abatement and delays the case by at least 60 days.

Is there a special notice for claims against an insurance company in Texas?

Yes, 61 days, not 60. A suit for unfair insurance practices under Chapter 541 requires written notice at least 61 days before filing, stating the specific complaint and the amount of actual damages and expenses, including attorney's fees (Ins. Code § 541.154).

Property claims for damage caused by forces of nature, such as hail, wind or storms, have a second, stricter notice under § 542A.003: the acts or omissions giving rise to the claim, the specific amount the insurer allegedly owes, and the attorney's fees incurred so far, calculated from the attorney's hours in contemporaneous time records multiplied by a customary hourly rate. Getting this notice wrong can limit the fees you recover later.

What is the Texas 10-day demand letter for a bounced check?

A notice that gives the check writer 10 days after receipt to pay in full. If they do not, the law presumes they knew the account was short, the key element of the Class C misdemeanor of issuing a bad check (Tex. Penal Code § 32.41).

• Delivery. Registered or certified mail with return receipt, or first-class mail evidenced by an affidavit of service, addressed to the address on the check, in the bank's records or in your records. Mailed notice is presumed received within five days.
• Wording. The notice must contain the statutory statement word for word; this template's paragraph 6C quotes it.
• Fee. The holder may charge a processing fee of up to $30 (Bus. & Com. Code § 3.506), but not if the prosecutor's office has already collected its own fee.

The presumption applies only if the check was presented within 30 days after it was issued, and never to a postdated check. Many county and district attorneys run hot check divisions that accept referrals after the 10 days pass.

Does a demand letter start interest running in Texas?

It starts the prejudgment interest clock. Interest accrues from the earlier of the 180th day after the defendant receives written notice of the claim or the day suit is filed (Tex. Fin. Code § 304.104), and Texas courts apply the same rule to breach of contract claims.

If the contract sets an interest rate, claim that rate. If it does not, prejudgment interest runs at the post-judgment rate: the prime rate, but never less than 5% or more than 15% a year (§ 304.003). The rate is simple, not compound. A written demand that you can prove was received is what starts the 180 days, so keep the return receipt.

How long do you have to sue in Texas, and which court hears the case?

Four years for a debt or breach of contract (Tex. Civ. Prac. & Rem. Code §§ 16.004, 16.051) and two years for property damage or personal injury (§ 16.003). Sending a demand letter does not pause either period.

Justice courts hear civil claims up to $20,000, not counting interest (Gov't Code § 27.031), under simplified rules written for people without lawyers. Larger claims go to county or district court. Name the court you plan to use in the letter; a specific next step is more persuasive than a general threat of legal action.

What should a Texas demand letter never say?

When collecting a consumer debt, do not threaten arrest or criminal charges unless a crime was actually committed, do not falsely accuse the debtor of fraud, and do not threaten to seize property without court proceedings (Tex. Fin. Code § 392.301). The Texas Debt Collection Act applies to creditors collecting their own debts, not only to agencies.

Threatening a civil lawsuit is expressly allowed. The bad check notice is the one place where criminal referral may be mentioned, because issuing a bad check is itself an offense. Keep the tone factual: the letter may be read by a judge, and an exaggerated or threatening letter helps the other side.