Reference no: EM134009072

Assignment:

In her role as collections manager, Noreen has to write a letter informing customers with overdue accounts that the interest rate has risen by 1 percent, effective 30 days from the date on the letter.

This policy means Petro-Go's current interest rate is 14 percent and in 30 days will increase to 15 percent. Overdue accounts are charged with compounding interest (that is, interest on both the previous month's balance and the interest already charged on that month's balance).

Questions to consider before starting the task

1. What does it mean to use the "you" attitude in this type of message?
2. Is the direct or indirect approach best for this bad-news message? Why?
3. What must be considered to avoid defamation of the customer's character or reputation?
4. How will Noreen end this message on a positive note?
5. Should Noreen suggest ways for the customer to avoid paying late payment charges in this letter?

Your Task

Write letter. Remember to use company letterhead (create it yourself) and include an enclosure notation. Include a 1-800 number customers can call for further information.

Remember the letter should indicate the information is confidential.