Template: Demand Letters for Refunds and Compensation After Platform Failures

When a platform failure costs you money, time or dignity: ready-to-use demand letters that get results

Hook: If a social app leaked your account, an AI chatbot created a sexually explicit deepfake of you, or a subscription service simply stopped delivering after you paid — you need a focused demand letter now, not another bureaucratic runaround. This guide gives you ready-made legal letters, a step-by-step escalation plan and an evidence checklist built for UK consumers in 2026.

The landscape in 2026: why demand letters matter more than ever

Platform failures have accelerated into a new normal. Late-2025 and early-2026 incidents — mass password-reset attacks on major social apps and high-profile AI deepfake harms from chatbots — have changed how regulators, courts and companies react.

Today, a formal demand letter does three things fast: it creates an official record, triggers internal complaint processes, and signals you are prepared to escalate to regulators (like the ICO or FCA) or to court. Well-drafted letters produce refunds and compensation far more often than informal messages on social media.

Key legal signposts (UK, 2026)

• Consumer Rights Act 2015 — covers digital content and services: faulty digital content and failed services can entitle you to a repair, repeat performance or refund.
• Data Protection Act 2018 & UK GDPR — covers personal data breaches; the ICO can order fines and corrective action. You can seek compensation for material or non-material damage caused by unlawful processing.
• Online Safety and Digital Services developments (2024–26) — increased regulatory focus on platforms' safety duties and content moderation; regulators expect faster redress pathways for harmful AI outputs.
• Payment rules & Section 75 — for credit card purchases between £100–£30,000, you may have Section 75 protection. Debit card chargebacks and card scheme dispute mechanisms are alternative routes.

When to send a demand letter — and which template to use

Choose the template that matches your incident. Send a demand letter when:

• A paid service stopped working and the company has ignored earlier requests.
• Your account was compromised due to a platform security failure and you suffered loss (financial or reputational).
• An AI product created sexualised or harmful content about you and the platform failed to remove it or compensate harm.
• You've exhausted the platform's standard complaint process and want to demonstrate seriousness before escalating to a regulator or court.

How to use these letters — practical rules

1. Be concise and factual. Include dates, transaction IDs, and clear remedies you seek (refund, compensation, deletion, apology).
2. Attach evidence. Screenshots, emails, chat transcripts, bank statements and any photos or download timestamps.
3. Set a realistic deadline. 14 days is standard for refunds; 7–14 days for urgent content removal. State that you will escalate if not resolved.
4. Keep records. Send by email and, when possible, by recorded post. Save delivery receipts and read-receipts.
5. Stay professional. Threatening language can backfire; escalate facts, not emotion.

Demand letter templates (copy, paste, adapt)

Each template below is labelled with use-case, required attachments, and a suggested deadline. Replace bracketed items with your details.

Template A — Refund request for paid service failure (digital subscription / platform credit)

Use when: A subscription or paid feature stopped working or was misrepresented.

Attachments: proof of payment, screenshots showing failure, previous complaint emails.

Subject: Demand for refund — [Your full name], account [Account ID], purchase [Date] Dear [Company Name] Customer Services, I am writing to demand a full refund for the paid service I purchased on [date] (Order/Transaction ID: [ID]). The service has not performed as described because [brief factual description of failure]. I previously reported this on [dates] by [email/in-app] and received [any response or no response]. Under the Consumer Rights Act 2015, I am entitled to digital content/service that is as described and of satisfactory quality. The service provided falls short because [brief reasons]. I therefore request a full refund of £[amount] and confirmation that my account will be closed and no further charges taken. Please respond within 14 days to confirm refund initiation. If I do not receive a satisfactory response within 14 days, I will escalate to my card provider for a chargeback/Section 75 claim (if applicable) and to the relevant regulator / independent dispute resolution service. Yours sincerely, [Your name] — [Contact details]

Template B — Compensation and refund after data breach / account compromise

Use when: You suffered financial loss, identity theft or other damage because the platform failed to secure accounts or exposed passwords.

Attachments: evidence of breach (notifications, screenshots), bank statements showing unauthorised transactions, correspondence with platform.

Subject: Demand for refund and compensation — Data breach / unauthorised access — [Your name] Dear [Company Name] Data Protection / Complaints Team, I write to demand compensation and remediation following the security incident on [date] that resulted in unauthorised access to my account (Account ID: [ID]). I have suffered [financial loss / identity theft / emotional distress] as detailed below: [short list of losses with dates and amounts]. Under the UK GDPR and the Data Protection Act 2018, data controllers must implement appropriate security measures. Your failure to do so has caused me loss. I therefore demand: 1) Full refund of £[amount] for [describe lost services/credits]; 2) Compensation of £[amount] for [material/non-material loss — be specific]; 3) Written confirmation of steps you have taken to secure accounts and a timeline for remediation; 4) Deletion of any unlawfully processed data pertaining to me where appropriate. Please reply within 14 days with a substantive offer. If no suitable response is received I will refer this matter to the Information Commissioner’s Office and consider civil court action. I am prepared to provide any further evidence you require. Yours faithfully, [Your name] — [Contact details]

Template C — Demand for removal and compensation for AI-generated sexualised content (non-consensual imagery)

Use when: An AI chatbot or platform generated sexualised/explicit content of you and the company has not removed it promptly.

Attachments: URLs/screenshots of content, dates reported, proof of identity where safe to provide.

Subject: Urgent removal & compensation demand — Non-consensual AI-generated image — [Your name] Dear [Company Name] Safety & Legal Team, This is a formal demand for immediate removal and compensation regarding non-consensual AI-generated content depicting me published/accessible at: [URL(s)] and created on/around [date]. I reported this on [date] via [support channel] but it remains accessible. This content has caused extreme distress and reputational harm. Under your platform policies and evolving UK online safety expectations, you must remove harmful material promptly. I therefore demand: 1) Immediate deletion of the content and any cached copies; confirmation of takedown and steps to prevent re-upload; 2) A written apology and an explanation of how you will change your systems to prevent recurrence; 3) Compensation of £[amount] for distress, reputational harm, and mitigation costs (e.g. monitoring, legal fees). Please confirm removal and a proposed offer within 7 days. If you fail to act, I will make a formal complaint to the ICO and to the regulator overseeing online harms in the UK, and will seek civil remedies including an injunction and damages. Yours sincerely, [Your name] — [Contact details]

Template D — Final notice before escalation (use if earlier letters ignored)

Use when: You have sent earlier demands and received no substantive resolution.

Subject: Final notice before escalation — [Your name] — [Account/Order ID] Dear [Company Name], This is my final notice. I first contacted you on [date] and again on [date]. I am still awaiting a satisfactory resolution regarding [brief summary of issue]. I require a full refund / compensation of £[amount] or other remedy of [state]. If you do not resolve this matter within 10 days I will escalate to the relevant regulator (ICO / FCA / Ofcom as appropriate), submit a formal Alternative Dispute Resolution (ADR) complaint, and commence court proceedings. I will also publish an accurate account of my experience to relevant consumer platforms and consider involving the media. Yours faithfully, [Your name]

Evidence checklist — what to attach and why

• Transaction records: receipt, card statement, order IDs.
• Timestamps: screenshots with visible date/time showing the failure or harmful content.
• Correspondence: all emails, chat records and automated responses from the platform.
• Impact proof: bank charges, lost income, screenshots of harassment, or professional impacts.
• Mitigation costs: receipts for credit monitoring, legal advice, or counselling.
• Identity proof (careful): only provide ID if required and via secure channels; otherwise describe the steps you took to verify identity when reporting.

Practical escalation pathway (company → regulator → court)

1. Company internal complaints — always start here and use the templates above. Note the date you sent each letter.
2. Payment provider / card schemes — if refund not forthcoming, raise chargeback (debit) or Section 75 (credit card) claim for applicable amounts.
3. Alternative Dispute Resolution (ADR) — check if the company is a member of an ADR scheme; use Resolver or Citizens Advice to identify routes.
4. Regulators — for data breaches or AI harms, report to the Information Commissioner’s Office. For financial services, use the Financial Ombudsman Service or FCA. For telecoms/broadcasters, use Ofcom.
5. Small Claims Court — for many consumer damages under £10,000 (England & Wales). For higher-value claims, seek legal advice.

2026 trends and advanced strategies

Regulators and platforms moved faster in late 2025 and early 2026. Key trends you can use:

• Faster ICO enforcement: after high-profile AI harms, the ICO has publicly emphasised prompt corrective action and is more likely to accept consumer reports alongside civil claims.
• AI accountability: platforms are under growing duty to show training-data provenance and guardrails. Your demand letter should ask for an explanation of how the AI produced the content — this increases leverage.
• Regulatory pressure on speed of takedown: regulators now expect removal within 24–72 hours for non-consensual intimate imagery and similarly harmful AI outputs; citing recent regulator statements strengthens your demand.
• Public remedies are effective: companies fear reputational damage. A concise threat to escalate to regulators and publish an accurate account to major consumer forums often prompts quicker settlement.

Case studies — how demand letters worked

Case 1 — Subscription refund after platform outage

In late 2025, a UK consumer sent Template A after a cloud gaming service was offline for 10 days. The demand letter included payment proof and a clear 14-day deadline. The company issued a 100% refund within 9 days and offered three months’ free service as goodwill.

Case 2 — Compensation after password-reset attack

Following the January 2026 password-reset attacks on major social platforms, a small business lost advertising credits and several pre-paid promotions. Using Template B and attaching bank statements, the business negotiated a refund of the ad spend plus £1,200 for lost revenue after threatening ICO referral. The company settled to avoid regulatory scrutiny.

Case 3 — Removal and settlement for AI-generated non-consensual imagery

After a chatbot exposed several fabricated sexualised images of a user in mid-2025, the user used Template C, cited the platform’s safety policy and the incoming online harms expectations. The platform removed the content and paid a modest settlement to avoid litigation while promising algorithmic changes and improved reporting flows.

What to watch for in the company’s response

• Requests for more evidence: usually reasonable — provide what’s necessary but avoid oversharing personal ID unless using secure channels. If they ask repeatedly for the same records, treat it as a delay tactic and consider escalating to ADR or regulator; also see automation guides on triage best practice.
• Offers of credit only: insist on a cash refund if that’s the remedy you want; credits can be acceptable as a secondary option.
• Delaying tactics: repeated requests for time without substance — use the Final Notice template and escalate.
• Admission of fault: if a company admits liability, get the admission in writing and consider seeking compensation beyond a refund.

When to get legal help

Most consumer demands settle without lawyers. Consider solicitors if:

• The loss is large (thousands of pounds) or complex.
• You need an injunction (e.g., to prevent re-publication of harmful content).
• The company refuses to engage and you intend to start a court claim.

For many mid-value claims, a pre-action protocol letter from a solicitor adds weight. But try the templates first — they succeed far more often than consumers expect.

Quick checklist before you send a demand letter

1. Choose the correct template and customise it.
2. Attach clear, dated evidence.
3. Decide your remedy: refund, compensation, deletion, or combination.
4. Set a firm deadline (7–14 days). State your next step if ignored.
5. Send by email and recorded post where possible. Save receipts.

Final notes and consumer protections

Be factual, keep emotion out of the letter and document every step. Platforms and regulators in 2026 are more responsive when consumers show they know the law and have evidence. Even where legal remedies are uncertain (for example, novel AI harms), a targeted demand letter frequently secures immediate practical relief.

Remember: this guide provides practical templates and pathways; it is not a substitute for legal advice. For high-value or complex claims, consult a solicitor experienced in data protection, consumer law or media/injunction work.

Actionable takeaways

• Use the right template for your problem — there’s a different tone and demand for data breaches vs service failures.
• Always attach evidence and set a clear deadline — 7 days for urgent takedowns, 14 days for refunds.
• Cite the Consumer Rights Act, UK GDPR/Data Protection Act and recent 2025–26 regulator expectations to increase leverage.
• If ignored, escalate to card provider, ADR, the ICO or Ombudsman; prepare to file in the Small Claims Court if necessary.

Call to action

If you need a tailored version of any of the templates above or a complaint checklist matched to your platform (social media, streaming, fintech or gaming) download our printable bundle and step-by-step tracker. Start with one clear demand letter today — it’s often the fastest, lowest-cost way to get the refund or compensation you deserve.

Need help now? Use our downloadable templates, or get a free pre-send review from our consumer advocacy team. Click to download and take control of your complaint.

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