How should I respond if I receive a demand letter in Ontario?

Receiving a demand letter can be stressful, but ignoring it is almost never the right response. The first step is to read it carefully and understand exactly what the sender is claiming and what they want you to do.

Once you understand the claim, assess it honestly. Is it valid? Is the amount correct? Do you have documentation that contradicts it — receipts, contracts, emails, photos? If the demand relates to a debt you genuinely owe, paying promptly within the stated deadline can save you the cost and stress of court proceedings. If you dispute the claim, you should respond in writing within the deadline, stating your position clearly and attaching any relevant evidence.

Before responding to a significant demand letter, consult a lawyer. A response that concedes points you did not intend to concede, or ignores defences available to you, can hurt your position in any later proceedings. A lawyer can help you craft a response that acknowledges receipt, preserves your legal options, and opens the door to negotiation if appropriate.

Never respond with anger or threats. Courts look unfavourably on parties who escalate disputes unnecessarily, and poorly worded responses can be used as evidence against you.