Reference no: EM133614686

Background

In her role as collections manager, Noreen must 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

· What does it mean to use the "you" attitude in this type of message?

· Is the direct or indirect approach best for this bad-news message? Why?

· What must be considered to avoid defamation of the customer's character or reputation?

· How will Noreen end this message on a positive note?

· Should Noreen suggest ways for the customer to avoid paying late payment charges in this letter?

The Task

Write letter explaining the situation to the customer. Use the Indirect Approach in your letter. Follow the format of formal letters. Review Appendix A of the textbook for guidelines on formatting and sample work