if a business wants to recover a debt owed by its debtors, it chooses to use letters. I know letters are formal and professional but what other reasons are there that businesses use letters?
2007-11-03 05:19:37 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
I believe that it is something to do with the consumer credit act 1974.
The letters I used to send for the bank that I worked for went out 14 days apart. The first one as a warning, the second removing the credit agreement and the third saying that we would be using a credit agency to recover the debt.
The bailiffs then acted.
2007-11-03 05:25:37 · answer #1 · answered by Dee L 5 · 0⤊ 0⤋
In many cases, the creditor is required to send a final demand letter before they can take legal action. They don't want to go through a lot of trouble, so they will send out a few letters first.
2007-11-03 07:18:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
- they are quicker ( system generated) then telephone calls so are ideal for high volume low value debtors
-before beginning any legal action, a debtor must have recieved at least one letter
2007-11-03 05:53:57 · answer #3 · answered by Lilly11a 2 · 0⤊ 0⤋
To scare debtors.
2007-11-05 07:00:07 · answer #4 · answered by John S 4 · 0⤊ 0⤋
You put things in writing so that there is a record of it, and you can go back and reference that letter.
2007-11-03 05:22:25 · answer #5 · answered by Anonymous · 2⤊ 0⤋
debt collectors charge you about £25 for every letter they send.
It's all about making money!
2007-11-03 05:22:11 · answer #6 · answered by Humza 5 · 0⤊ 0⤋
When something is in writing its usually pretty clear what it means. And you can take it to court later. And its hard to argue later that you didn't understand it.
2007-11-03 05:41:40 · answer #7 · answered by hottotrot1_usa 7 · 1⤊ 0⤋
as opposed to sending someone to your door everyday?
2007-11-03 05:25:40 · answer #8 · answered by David C 3 · 0⤊ 0⤋