V. Case study.

A. Mr Marvin Gold of 1602 Arlington Avenue, Bronx, New York10477, has had a charge account at Manson's Department Store, 4404 Madison Avenue, New York, New York 10008, for six years. His credit limit is $400. He has always paid his bills on time although he currently has an outstanding balance of $182.54, forty-five days overdue. The National Credit Bureau has contacted Manson's for credit information about Mr Gold.

Write a letter Manson's should send to the National Credit Bureau.

B. The credit reference of Ms Migdalia Riiz (818 Ocean Parkway, Brooklyn, New York 11202) are all favorable, and so her new charge account with Manson's Department Store has been approved.

Write the letter Manson's should send to Ms Ruiz.

C. Ms Hiroko Osawa's credit references indicate that, although she has no outstanding debts or record of poor payment, her employment history is unstable. Manson's Department Store, therefore, concludes that she would be a poor credit risk.

Write the letter that Manson's should send to Ms.Osawa (6061 Valentine Lane, Yonkers, New York 80301), denying her application for a charge account.

Unit 11

Collection Letters

1. Discussion topics.

1.Discuss the following questions with your group-mates:

1. Can you suggest any situation when a firm/person writes or receives collection letters?

2. Collection letters are a standard part of the collection process. Is it necessary to apply the ‘you’ attitude in such letters? Why do you think so?

2. Read these questions and find the answers in the three letters that follow:

1. What are the letters about?

2. In what ways are they the same? In what ways are they different?

3. These letters were written on the following dates: 28th October, 14th December, 7th February. Which date goes with which letter?

4. Which words express the most polite request for payment?

5. Which words set a deadline for payment?

L

Dear Mr Cooper

Your order (No 412) for satellite dishes

We are writing to remind you that we have not yet received payment for this order.

As you must realize, it is not possible for us to continue to supply goods on such favorable terms unless our customers clear their accounts promptly.

We have not had any explanation from you concerning your reasons for this delay, or any indication of when you intend to settle the account, despite our reminder.

We therefore have to ask you to notify us immediately of the arrangements you are making for payment.

Yours sincerely

Margaret Corbett (Mrs)

Sales Manager

ETTER A

LETTER B

Dear Mr Cooper

Your order (No 412) for satellite dishes

We refer to the invoice for the above order which we sent to you by air mail on 14 June.

According to the terms of the invoice, settlement of this account was to be made within ninety days. However, we do not appear to have received payment from you. In case you did not receive the original invoice, we enclose a copy with this letter.

As payment is now overdue, we would be grateful if you would arrange for early settlement.

Yours sincerely

Margaret Corbett (Mrs)

Sales Manager

LETTER C

Dear Mr Cooper

Your order (No 412) for satellite dishes

You have still not given us any explanation for your failure to clear this account.

We have been very patient and have made every effort to maintain a good business relationship with you. However, if we do not receive payment by the end of this month, we shall have no alternative but to place the matter in the hands of our solicitors, who will take the necessary steps to secure payment.

Yours sincerely

Margaret Corbett (Mrs)

Sales Manager