Assignments: Routine, Negative, and Persuasive Messages $-20\%$ out of $60\%$

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 a 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 works.