Recover a debt
Formal notice: when and how should it be used for an unpaid invoice?
A formal notice records a demand to perform an obligation, here payment of an invoice. It generally follows verification of the debt and unsuccessful ordinary reminders.
Before sending
- —Check the debtor’s exact identity
- —Match the contract, order, invoice and performance evidence
- —Deduct payments and credit notes
- —Review disputes already raised
- —Check applicable limitation periods
Make an unambiguous demand
Identify the debt, legal or contractual basis, amount and required action within a stated period. Make clear that it is a formal notice and remain proportionate.
- —Include useful references
- —Allow a reasonable period
- —Use delivery that evidences date and content
After formal notice
A response may require correction, examination of a dispute or a written agreement. Without resolution, the creditor decides whether further action is legally and economically appropriate. Proceedings are never automatic.
- —Common mistake: using a template with the wrong amount or addressee
- —Legal effects depend on the file and applicable law
Conclusion
Formal notice is useful when based on a verified file and a genuine next-step decision. Complex or disputed cases may require a lawyer or French commissioner of justice.