Collection Processes Outlined
"I don't do much letter writing anymore," notes Jan Perlman, credit manager for Medo Industries, Inc. (Tarrytown, N.Y.). But when her other efforts to make contact with a delinquent customer have failed, she will sometimes send a certified letter--to make sure it is received--and follow up with a phone call. She cites a recent situation with one long-term customer. Medo's experience with this company had been very eventful. After satisfactory relations for several years, credit privileges had to be suspended when they ran into severe financial problems. "We had no alternative," she recalls. "They understood we had to do it, and we did recover all that was due us." Medo ceased doing business with the company for a year. Then the customer's controller called Perlman to tell her that they were back on their financial feet. His contentions were confirmed in Medo's routine annual review of all accounts--active and inactive. "We began selling to them again on open account," she says. Then, six months ago, payment problems began anew. "This was really troubling," she says. "I thought we had established an open and honest relationship." More troubling still was the fact that now she could not reach the controller by phone. So out went a certified letter detailing the condition of the account and reviewing her attempts at trying to reach him.
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