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Final Demand Notice

When you've sent every reminder. And you're done being patient.

A formal last word, sent in your name. One SMS and one email that cites FDCPA and state-statute language, sets a 5-day deadline, and references that cancelled debt of $600 or more may be reported to the IRS as taxable income to the debtor. Send as a one-off, or as the closing step of the 5-week recovery sequence.

Send your first Final Demand Notice → See how it fits the recovery flow →
5-day deadline • 99¢ per notice • Software, not a collector • ti3.co
Sample · Final Demand Notice
NOTICE OF FINAL DEMAND
Acme Studios
142 Main Street, Worcester, MA · 7 May 2026
To: ClientCo, attn. Bob Blunt

This is a FINAL DEMAND for immediate payment of $4,200 owed to Acme Studios pursuant to Invoice #4401, dated 12 March 2026.

Pay within 5 days to avoid escalation

Under the Fair Debt Collection Practices Act and applicable state statutes, this account is now severely delinquent. Cancelled debt of $600 or more may be reported to the IRS on Form 1099-C and treated as taxable income to the recipient.

Brandon Smith, Acme Studios
ref: inv#4401/escalate/ti3.499811

You've sent five reminders. You've offered settlements. You've left voicemails. Some accounts still won't move. They're not disputed. They're just being ignored. The next step you actually have, before a collector or a lawyer, is to be very clear about what happens if they keep ignoring it.

How the Final Demand Notice works

Four mechanisms doing the work.

01

Sent in your business identity, not ours

One SMS plus one email, with the formal language of a final demand. The debtor sees a serious notice from a business they recognize, not a third-party collector. ti3.co does not contact the debtor as a third party.

02

FDCPA and state-statute language

The notice cites the Fair Debt Collection Practices Act and applicable state statutes. Same legal-awareness framing collection professionals use, sent without becoming one.

03

The 1099 reference does the work

Cancelled debt of $600 or more may be reported to the IRS on Form 1099-C and is generally taxable income to the recipient under IRS Topic 431. Most debtors who've ignored five soft reminders settle within days of seeing this one.

04

Software, not a collector

ti3.co provides the tooling and the tracking. Cancellation of debt is the creditor's decision to make if the bill stays unpaid. ti3.co is not a debt collection agency; the FDCPA applies to third-party collectors that ti3.co is not.

When to use it. When not to.

Built for stubborn accounts. Not for everything.

✓ Use FDN when

  • Stubborn accounts have ignored the soft 5-week sequence.
  • You want a one-off firm last word without running the full sequence.
  • You're considering a collector or attorney. The FDN sometimes gets paid for less than what either of those would cost.
  • The debtor is a US business or US individual and the balance is $600 or more.

✗ Don't use FDN when

  • The account is in active dispute. Resolve the dispute in writing first.
  • The debtor is outside the United States. The FDCPA and 1099 references are US-specific.
  • The balance is under $600 and you don't intend to write it off. The 1099 leverage assumes a real write-off path.
  • The account is so old that the underlying claim's statute of limitations has lapsed in the debtor's state.
Pricing

Built into ti3.co. Same plans, same app, same login.

Sign up to ti3.co. Send reminders, send Final Demand Notices, or both, from the same dashboard. Case Resolution is included on every plan.

Pay-as-you-go
99¢ /notice

For occasional one-off Final Demand Notices. No subscription. Pay only for the notices you send.

  • Send as many or as few as you need
  • FDN-only or alongside the 5-week sequence
  • Case Resolution tracking included
Start sending notices →
Most operators choose this
Self-Serve
$49 /month

Up to 100 notices a month, FDN and reminder mix. Use the full 5-week sequence with FDN as the optional step 6, or send FDN-only.

  • Up to 100 invoices in active recovery (any mix)
  • Full 5-week sequence with optional FDN step
  • QuickBooks 1-click + Excel upload
  • Case Resolution tracking included
Start a Self-Serve plan →
Managed
From $499 /month

We run the program for you, including FDN where the sequence calls for it. 30-day money-back guarantee included.

  • We operate ti3.co on your aging report
  • FDN sent at the right escalation point
  • 30-day money-back guarantee
  • Case Resolution tracking included
Show me what's recoverable →

Full pricing comparison and Enterprise option at /pricing/.

Final Demand Notice FAQ

What you should know before you send one.

Are we required to file 1099-C if we write off the debt?
Generally no, unless your business is in the lending or financial-services category (per the IRS definition of "applicable entity"). Most small businesses, MSPs, contractors, and service businesses can voluntarily issue a 1099-C if they choose, but are not required to. The IRS treats cancelled debt of $600 or more as taxable income to the debtor regardless (see IRS Topic 431). The Final Demand Notice references this honestly: "may be reported." It does not claim a filing requirement that does not apply.
What does the notice actually say?
Plain professional language stating the unpaid amount, the time elapsed, the consequence (escalation in costs and procedures, plus potential write-off and 1099-C reporting), the Fair Debt Collection Practices Act and state-statute references, and a 5-day deadline to settle or formally dispute. No threats, no shame language, no third-party collector identity. The notice is sent under your business identity, not from ti3.co.
Can I send a Final Demand Notice without running the full 5-week sequence?
Yes. FDN is available as a one-off. Upload the account, send the notice, track resolution in Case Resolution. You do not need to subscribe to a multi-tier plan. Pay-as-you-go at 99¢ per notice covers occasional use.
What happens if it works?
Most accounts that respond to FDN settle within 5 to 10 days of receipt. The debtor pays through the same payment link they would have used in the regular sequence; recovered funds route directly to your Stripe or PayPal account. ti3.co never takes custody of debtor funds.
When should I NOT send a Final Demand Notice?
Three situations: (1) Active disputes. Resolve the dispute in writing first. (2) Debtors outside the United States. The FDCPA and 1099 references are US-specific. (3) Accounts under $600 where you do not intend to write off. The 1099 leverage assumes a write-off path, which is not credible below the IRS reporting threshold.
Is ti3.co acting as a debt collector when it sends the FDN?
No. The FDN is sent from your business identity, not from ti3.co. ti3.co is software you use to compose and deliver the notice. The Fair Debt Collection Practices Act applies to third-party debt collectors; ti3.co is not one. The decision to write off debt and the decision (if applicable) to issue a 1099-C remain with you, the original creditor, at all times.

Curious how many of your stuck accounts would settle on a Final Demand?

Send us your aging report. We'll flag the accounts where FDN is the right next step versus the ones that need a different path. No commitment, no signup, no sales call.

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