How to Write a Demand Letter Before Filing a CRT Small Claim in BC

You spent weeks chasing a contractor, a customer, or a roommate who owes you money, and now you're ready to file with the Civil Resolution Tribunal. Before you pay the $75 or $125 application fee, there's one step that can save you both time and money: sending a clear, written demand letter.

Why a Demand Letter Matters

The CRT doesn't require a formal demand letter before you file, but sending one serves three practical purposes. First, it puts the other side on notice that you're serious about pursuing the debt through the tribunal. Second, a well-written demand creates a paper trail you can submit as evidence showing you tried to resolve things informally. Third, it sometimes works — people who ignore phone calls and texts often respond to a letter that names a specific amount and a deadline.

The CRT's own Solution Explorer may suggest sending a demand as part of the pre-filing process. If the other side pays after receiving your letter, you avoid the application fee entirely.

What to Include in Your Demand Letter

Keep the letter factual and professional. Avoid threats, insults, or references to criminal charges. Your demand letter should cover:

• Your full legal name and contact information and the respondent's full legal name (verify the name through BC Registries and Online Services if you're dealing with a business)
• A clear description of what happened — the transaction, the date, what was agreed, and how the other party breached the agreement
• The exact dollar amount you are owed, including any partial payments already received (credit those explicitly)
• A payment deadline — 10 to 14 calendar days is standard
• A statement that you will file a CRT claim if the amount isn't paid by the deadline

Do not include inflammatory language or demands for compensation beyond what you can actually claim. The CRT's $5,000 monetary limit applies, so if you're owed more than that, you'll need to decide whether to abandon the excess or file in Provincial Court.

How to Deliver the Demand Letter

Send the letter in a way you can prove. Registered mail through Canada Post with signature confirmation is the most reliable method. Keep a copy of the letter, the tracking receipt, and the delivery confirmation.

Email is faster and creates its own timestamp, but some respondents will claim they never received it. If you use email, follow up with a registered mail copy.

The demand letter itself does not pause the two-year limitation period under BC's Limitation Act. That clock keeps running until you submit your CRT Dispute Application and pay the filing fee. If your limitation period is close to expiring, file first and negotiate after — don't wait for a response to your demand.

What Happens After You Send It

If the respondent pays in full, your dispute is resolved without tribunal involvement. If they offer a partial payment, you can accept it and adjust your claim amount for the remaining balance.

If the deadline passes with no response, you have your evidence of good-faith effort and you're ready to file. The CRT's Solution Explorer will walk you through the application process, and you can attach a copy of your demand letter to your Dispute Application.

A demand letter costs you a stamp and twenty minutes. It's worth sending before you commit to the filing fees and the months-long tribunal process. If you want the full step-by-step workflow — from demand letter through service, evidence preparation, and the tribunal decision — the BC CRT Small Claim Filing Guide walks you through every stage.

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