What Is a Demand Letter in Colorado?
A demand letter is a formal written notice sent to the person or business that owes you money or has failed to meet an obligation. The letter describes the dispute, states the specific amount owed, and gives the other party a deadline to pay or resolve the matter before you file a lawsuit. In Colorado, sending a demand letter is a recommended practice that shows the court you attempted to resolve the dispute amicably.
Colorado Small Claims Court Overview
Colorado small claims cases are handled through the County Court system, which provides streamlined procedures designed for self-represented parties.
Key Details
- Court name: Colorado County Court (Small Claims Division)
- Maximum claim amount: $7,500
- Filing fees: $31 for claims up to $500, $55 for claims from $500.01 to $7,500
- Where to file: The county court where the defendant resides, where the defendant is employed, or where the transaction or event occurred
- Attorneys: Allowed but not required. The court is designed for self-represented parties.
- Appeals: Either party may appeal to the District Court within 14 days of judgment
- Counterclaims: The defendant may file a counterclaim. If the counterclaim exceeds $7,500, the case may be transferred to regular county court proceedings.
Statute of Limitations in Colorado
Colorado law sets deadlines for bringing different types of claims. After the deadline expires, the claim is barred.
- Written contracts: 6 years (C.R.S. Section 13-80-101)
- Oral contracts: 6 years (C.R.S. Section 13-80-101)
- Property damage: 2 years (C.R.S. Section 13-80-102)
- Personal injury: 2 years (C.R.S. Section 13-80-102)
- Fraud: 3 years from discovery (C.R.S. Section 13-80-101)
- Bad checks: 6 years
- Consumer protection (CCPA): 3 years (C.R.S. Section 6-1-115)
Send your demand letter promptly and file suit well before the applicable deadline.
What to Include in Your Colorado Demand Letter
Identifying Information
- Your full legal name and contact information
- The recipient's full legal name and address
- The date of the letter
Facts of the Dispute
- A clear, factual description of the events that led to the dispute
- Specific dates, amounts, and locations
- The nature of the agreement or transaction
- References to any contracts, invoices, receipts, or written communications
The Legal Basis
- Why the other party is legally obligated to pay under Colorado law
- Relevant contract provisions
- Applicable Colorado statutes
- A summary of the supporting evidence you have
The Demand
- The specific dollar amount you are claiming
- An itemized breakdown of the amount
- A payment deadline of 15 to 30 days
- A statement that you will file in Colorado County Court if the matter is not resolved
Certified Mail Requirements in Colorado
Colorado does not impose a blanket requirement that demand letters must be sent by certified mail. However, several Colorado statutes require certified mail notice in specific circumstances:
- Bad check claims: Under C.R.S. Section 13-21-109, the holder of a dishonored check must send a written demand by certified mail or hand delivery. The demand must give the check writer 15 days to pay the check amount plus fees before civil penalties can be recovered.
- Security deposit claims: Colorado landlord-tenant law (C.R.S. Section 38-12-103) requires written notice regarding security deposit deductions. Tenants should send demand letters for unreturned deposits by certified mail.
- Colorado Consumer Protection Act: Demand letters related to CCPA claims should be sent by certified mail to establish proper notice.
For all demand letters, regardless of the type of claim, sending via USPS Certified Mail with Return Receipt Requested is the standard practice. The return receipt provides court-admissible proof that the letter was delivered and accepted.
Interest Rates on Judgments in Colorado
Colorado law provides for interest as follows:
- Prejudgment interest: 8% per year on liquidated claims, compounded annually (C.R.S. Section 5-12-102). This interest runs from the date the amount was due.
- Post-judgment interest: 8% per year, compounded annually (C.R.S. Section 5-12-102)
- Contract rate: If the parties agreed to a specific interest rate in the contract, that rate applies. Colorado does not have a usury ceiling for most commercial transactions.
Including the applicable interest calculation in your demand letter shows you understand your rights and increases pressure to settle.
When to Escalate to Court
File in Colorado County Court Small Claims Division when:
- The deadline in your demand letter has expired without a satisfactory response
- The other party has refused to pay or negotiate
- Your claim is $7,500 or less
- You are within the applicable statute of limitations
- You have evidence to support your claim
Steps to File in Colorado County Court
- Obtain the small claims complaint form (JDF 250) from the court clerk or the Colorado Judicial Branch website
- Complete the form with the details of your claim
- File the complaint at the county court in the correct location
- Pay the filing fee ($31 or $55)
- Serve the defendant by certified mail, personal service, or through the sheriff's office
- Attend the hearing (typically scheduled within 30 to 90 days)
- Present your case to the magistrate or judge
- The court will issue a ruling, often on the same day as the hearing
Tips for Colorado Demand Letters
- Colorado allows mediation as an alternative to court. Consider mentioning your willingness to mediate in your demand letter.
- Keep the tone professional and factual. Colorado judges value reasonableness.
- Be specific with dollar amounts and include itemized calculations.
- If your claim is close to the $7,500 limit, calculate carefully whether small claims is the right venue.
- Keep copies of all documents, the certified mail receipt, and the return receipt.
- If the defendant is a business, verify the correct legal entity name through the Colorado Secretary of State.
- Colorado allows electronic filing in some counties. Check with the court clerk for availability.