California Demand Letter Requirements (2026 Guide)

California Demand Letter Requirements: What to Include Before Filing Small Claims

If someone owes you money in California and you're thinking about small claims court, there's one step you need to take first: send a demand letter.

California courts don't technically require a specific format for your demand letter. But they do expect you to show that you asked for payment before filing your case. Judges want to see that you made a reasonable effort to resolve things without dragging everyone into court.

Here's what you actually need to know about California demand letter requirements, what to include, and how to make yours count.

Does California Require a Demand Letter Before Small Claims?

Short answer: not exactly, but basically yes.

California's small claims court system strongly encourages you to demand payment before you file. The California Courts self-help website even has a tool that walks you through writing one. And when you show up to your hearing, the judge will almost certainly ask: "Did you try to resolve this before coming to court?"

If you can hand them a copy of a demand letter with proof it was delivered, you're already ahead of most people in that courtroom.

Think of it this way: the demand letter isn't just a legal checkbox. It's your first real move. About 70% of disputes settle after a demand letter is sent, without ever seeing a courtroom. That's because most people who owe money aren't scammers. They're just hoping you'll give up. A formal letter proves you won't.

What to Include in a California Demand Letter

There's no official state template you have to follow. But a strong demand letter in California should cover these basics:

  • Your name and contact information. The person needs to know who's making the demand.
  • Their name and address. Be specific. If you're sending it to a business, include the registered business name.
  • A clear description of what happened. Stick to facts. Dates, amounts, what was agreed to, and what went wrong. Two to three paragraphs is plenty.
  • The exact amount you're demanding. Don't be vague. "You owe me $2,400 for the security deposit you failed to return within 21 days of my move-out on January 15, 2026."
  • A deadline to pay. 10 to 14 days is standard. Be specific with the date.
  • A statement about what happens next. Something like: "If I do not receive payment by [date], I intend to file a claim in small claims court." Keep it factual. Don't threaten. Just state your plan.
  • Any supporting evidence. You don't need to attach everything, but referencing receipts, contracts, photos, or text messages strengthens your position.

Keep the tone professional but firm. You're not writing to a friend. You're creating a legal document that a judge might read later.

How to Send a Demand Letter in California

How you send the letter matters almost as much as what's in it. You need proof that the other person actually received it (or at least that you tried to deliver it).

Best options:

  • Certified mail with return receipt. This is the gold standard. USPS gives you a tracking number and a signed receipt when it's delivered. Judges love this.
  • Email with read receipt. Acceptable but weaker. It works if you also have other documentation showing the person received it.
  • Hand delivery with a witness. Valid, but harder to prove later.

Whatever you do, keep copies of everything. The letter itself, the tracking receipt, any delivery confirmation. This becomes your evidence if you end up filing.

California Small Claims Court Limits

Before you send that letter, make sure your claim fits within California's small claims limits:

  • Individuals: Up to $12,500
  • Businesses and corporations: Up to $6,250
  • Filing fees: $30 to $75, depending on how much you're claiming

If your dispute is over these limits, you'll need to file in a different court. But for most everyday disputes (security deposits, unpaid invoices, car repairs gone wrong, contractor work), small claims handles it.

Common California Disputes Where Demand Letters Work

Not sure if a demand letter is worth it for your situation? Here are the most common California cases where sending one first makes a real difference:

  • Security deposit disputes. California law (Civil Code Section 1950.5) gives landlords 21 days to return your deposit after you move out. If they miss that deadline, a demand letter puts them on notice that you know your rights.
  • Unpaid contractor work. You hired someone, paid them, and they disappeared. Or they did the work badly and won't fix it. A demand letter with photos and your contract attached is powerful.
  • Car repair disputes. The shop charged you $2,000 and your car still doesn't work. You want a refund or a proper repair.
  • Personal loans. You lent a friend or family member money and they stopped paying you back. Awkward? Yes. But $3,000 is $3,000.
  • Unpaid wages. Your employer owes you for hours worked. California has strong wage protection laws, and a demand letter is often the push they need to cut the check.

What Happens After You Send the Demand Letter?

One of three things will happen:

1. They pay up. This is the most common outcome, especially when the letter comes via certified mail. Something about an official-looking letter with a deadline makes people take action. Problem solved, no court needed.

2. They respond and want to negotiate. Also a win. If they're willing to talk, you might settle for a partial payment or a payment plan. Get any agreement in writing.

3. They ignore it. Now you file in small claims court. But you're not starting from scratch. You have the demand letter, the proof of delivery, and documentation showing you tried to resolve it. Judges notice that.

Don't Overthink It

The biggest mistake people make with demand letters isn't getting the format wrong. It's never sending one at all. They convince themselves it won't work, or that it's not worth the effort, or that they'll deal with it later. Later never comes.

You don't need a lawyer to send a demand letter in California. You don't need to spend hundreds of dollars. You just need to put your demand in writing, send it in a way that creates a paper trail, and give them a deadline.

If you want help getting one out fast, PettyLawsuit sends demand letters with certified mail tracking for $29. Over 2,500 people have used it, and about 70% get paid without ever going to court.

But whether you use a service or write it yourself, the important thing is that you actually send it. Don't let someone keep your money just because writing a letter feels like a hassle. It's not. And in California, it might be the only step you need to take.