How do I send a letter of demand for a refund?
What a letter of demand is, what to put in one when a business refuses a refund on a big purchase, and where to take it if they ignore it.
AI-assisted research and reviewed for accuracy. Something out of date? Let us know.
Write to the business, say what you're owed under the Australian Consumer Law, set a date to pay and say what you'll do if it doesn't. A letter of demand is a firm request, not an order: only a tribunal or court can make the business pay. If it's ignored, NCAT in NSW hears consumer claims up to $100,000 within 3 years of the problem.
Already tried and got nowhere?
That's where we start. Our team takes it from here.
What is a letter of demand, and what can you ask for?
It's your final written request before you take the claim further. Legal Aid NSW describes a letter of demand as a letter "asking them to pay you the money they owe", which warns that you may start a case if they don't.
A letter of demand is a request, not an order. On its own it can't make a business pay. What it does is put your claim, your deadline and your next step on record. Legal Aid NSW notes that if you end up in court, the letter is evidence that you asked for your money back.
That record matters most on big purchases: a fridge that died after 18 months, a sofa that arrived broken, a flight the airline cancelled. Those are the claims where a business is most likely to stall, and where a tribunal is worth the application fee.
What you can demand comes from the Australian Consumer Law (ACL). It gives you automatic rights called consumer guarantees, such as the guarantee that a product is of acceptable quality. The remedy depends on how serious the problem is.
| The problem | What the ACCC says you can get |
|---|---|
| Major problem with a product (unsafe, can't do its normal job and can't easily be fixed, or you wouldn't have bought it knowing) | Your choice of a refund or a replacement, or keep it and be compensated for the drop in value |
| Minor problem with a product or service | A free repair or fix. If the business can't or won't fix it within a reasonable time, a refund or replacement instead |
| Major problem with a service | Cancel and get a refund, less a reasonable amount for work already done, or keep it and pay a lower price |
A "no refunds" policy doesn't change this. The ACCC says it's illegal for businesses to rely on store policies or terms that deny these rights.
An expired warranty doesn't end your rights either. The ACCC says the consumer guarantees can continue to apply after a product's warranty has expired.
The legal aid letter-of-demand guides online are mostly written for people chasing a debt. A refund demand works the same way, but it asks for the remedy the ACL gives you rather than repayment of a loan.
What should you put in it?
If you've only asked on the phone or at the counter, this letter is your first written request, so send it now. If you've already written once and been refused, this is the final one.
Step 1: Get your evidence together
Collect the receipt or bank statement, photos or video of the fault, and every email or chat about it. Note the dates you asked and what staff said.
Step 2: Send it to the right business, in writing
Address it to the business that sold it to you, using the name on your invoice. The ACCC says a written complaint should describe the problem and the outcome you want, give the key dates, say what you've already done and what you'll do next, and ask for a response within a reasonable time. Ajust's recommended channel is whichever one gives you a written record and a reference number, usually the web form or a complaints email.
Subject: Letter of demand: refund for [product or booking]
Hello,
On [date] I bought [product or service] from you for $[price]. Since [date] it has [describe the problem]. I raised this on [dates] and was told [what they said].
I am asking for a full refund of $[amount], paid to [card or bank account].
Please pay or confirm in writing by [date, 14 days from today]. If I don't hear from you by then, I will lodge a complaint with [Fair Trading or Consumer Affairs] and apply to [the tribunal in your state] without further notice.
Regards,
[Your name and contact details]
Step 3: Keep proof you sent it
Keep a copy and note where, when and how you sent it. Legal Aid NSW gives the same advice. Put the deadline in your calendar and don't extend it unless the business offers a firm date in writing.
Already sent it and still being ignored or refused? Here's what happens next.
What if they ignore the letter of demand?
You follow through on the next step you named. Each route below can help, but each has limits worth knowing before you start.
| Where | What it does | Where it stops |
|---|---|---|
| The business's manager or complaints team | Can approve a refund the front line refused | It's still the business deciding about its own refusal |
| State consumer agency (NSW Fair Trading, Consumer Affairs Victoria, Queensland Office of Fair Trading) | Contacts the business to try to reach an agreement | It can't order a refund. Queensland's Office of Fair Trading says it cannot force a business to compensate you or fix a problem |
| NSW Fair Trading consumer guarantee direction | Can direct the business to repair, replace or refund a faulty product. The business must comply within 28 days | Products only, not services. The price must be $25 to $3,000 (excluding GST), bought in the 6 months before you complained, with both of you in NSW |
| Tribunal (NCAT, VCAT, QCAT) | Hears the claim and can order a refund, repair or payment | You prepare and present the case yourself, and application fees apply. NCAT: claims up to $100,000, apply within 3 years. VCAT: generally within 6 years. QCAT: claims up to $25,000, within 6 years |
You don't need a lawyer to send a letter of demand or to apply to a tribunal. NCAT says most people represent themselves and you need its permission to be represented in a consumer claim, VCAT generally doesn't allow a lawyer to speak for you on goods and services claims under $15,000, and Legal Aid NSW can fund a consumer tribunal case if you pass a means test and a merit test, usually once you've already tried the business's complaints process and an outside one.
Can someone take this on for you?
Yes. A refused refund on a big purchase is the kind of case Ajust takes on.
Our team sends the full version of this letter, with the parts of the law that apply, to the people who can approve a refund: the store or area manager, or the airline's complaints team. We hold them to the date. In NSW, Victoria, Queensland, SA and WA we can lodge it with Fair Trading or Consumer Affairs for you if they still refuse. If it gets to a tribunal, we'll give you guidance so you can lodge it yourself.
No win, no fee. We'll tell you straight if we don't think we can win it.
What doesn't work
- Leaving out a date. "Please respond soon" gives the business nothing to miss. Name a day.
- Threatening things you won't do. Name one next step you will actually take, then take it when the date passes.
- Writing to the wrong business. A tribunal claim needs the seller's correct name. Use the name on your invoice, not the brand on the box.
- Making it look like a court document. Victoria Legal Aid says it's illegal for creditors to make letters look like official court documents. Keep yours plain and factual.
- Accepting a voucher to make it go away. If you're owed a refund under the ACL, you can say no to a credit.
Common questions
Is a letter of demand legally binding?
No. It's a request with a deadline, not an order. Only a tribunal or court can order a business to pay. The letter still matters: Legal Aid NSW says that if you end up in court, it's evidence that you asked for your money back.
Do I need a lawyer to send a letter of demand?
No. Anyone can write and send one. Legal Aid NSW publishes sample letters you can adapt. A lawyer's letter isn't needed for a tribunal claim, and NCAT says you can run your own case without a lawyer.
How long should I give them to reply?
Pick a fixed date and put it in the letter. The sample letter above uses 14 days, which gives the business a fair chance to respond without letting the claim drift. Count from the day you send it and keep proof of when it went.
The business replied with an offer of store credit. What now?
If the problem is major, the ACCC says you choose between a refund and a replacement. Reply in writing that you don't accept the credit, restate the refund you're asking for and keep your original deadline.
I paid by card. Can I ask my bank instead?
You can ask your bank about a chargeback, which reverses the card payment. Consumer Affairs Victoria says the time limits vary from 45 to 120 days from the transaction date, so ask early. Keep your letter of demand going alongside it.
- Legal Aid NSW: Letter of demand for a debt
- ACCC: Contacting a business to fix a problem
- ACCC: Repair, replace, refund, cancel
- Queensland Government: Understand the complaint process
- NSW Fair Trading: Consumer guarantee directions
- NCAT: Consumer claims
- NCAT: Representation
- VCAT: Before you apply, goods and services disputes
- QCAT: Consumer and trader disputes
- Legal Aid NSW: Consumer protection policy
- Victoria Legal Aid: Notice of legal action, being sued for an unpaid debt
- Consumer Affairs Victoria: Chargebacks
Other
General
Issues
Read about the issues consumers are facing. Have a different issue? You can still make a complaint.