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How to Write a Letter of Intent to Claim Compensation

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Numerous reasons could prompt you to write a letter of intent to claim compensation, such as completing a job for someone who did not honor the agreed-upon payment amount or paying out-of-pocket expenses to repair something that was someone else's responsibility. Essentially, a letter of intent to claim compensation is a business letter that formally requests the responsible individual or entity to pay you a specific amount to cover the costs of the situation and informs them of your intended course of action if they fail to do so.

Place your name and contact information at the top of the letter. Write the name and contact information of the recipient beneath this. Use the individual's name in the greeting, such as "Dear Mr. Doe." If your letter is addressed to an organization or business, direct it specifically to the person in highest authority at the local level.

Begin the letter by stating your reason for writing -- your intent to claim compensation. Include the amount of money you believe is owed to you and the reason why this money is owed, providing details and names where appropriate.

Write a statement in the next paragraph outlining a reasonable time frame for the compensation to be delivered to you and how you will accept payment (for example, check or money order). Inform the recipient that if payment is not remitted by the time frame given, you will take further action to claim the monies owed to you.

Outline what you intend to do if the recipient of the letter does not respond or does not provide payment, such as filing a suit in small claims court or seeking the assistance of higher management if appropriate. Keep this paragraph brief and maintain a professional, non-threatening tone. Do not make demands; simply state your plan of action for ensuring payment.

Close the letter by providing the recipient with the best time and method of reaching you, as well as your attorney's information if you have one. Thank him for his cooperation, and end with a cordial salutation like "Sincerely" or "Best regards." Be sure to sign your letter before sending it.

  • "Ultimate Book of Business Letters"; Jack Savage; 2007
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