Punitive measures are taken in almost every organization. An organization takes these measures against those people or companies who don’t act according to the terms which have been agreed upon by both. The non-serious behavior of a client in some cases prompts the company to take punitive actions against him.
The punitive actions may include different types of punishments such as cancellation of the agreement, suspending the account of the client and a lot more.
No matter which type of punitive action you want to take, writing an announcement letter to the client to let him know about the punitive actions you are going to take is essential. When you and your clients are in contact with each other, you both are required to abide by the rules of the contract.
However, if the client is not taking the contract serious and making the payments late or not paying at all, you can write a warning letter to your clients. If the repeated warning letters don’t work, you will be compelled to take punitive actions against the client’s account.
You can suspend the account of your client to compensate for the loss of money. But, make sure that you inform the client about such actions.
How to write the letter to announce the punitive measures against a client’s account?
- The punitive measures announcement letter should be written precisely.
- Since this letter does not include any good news for the client, it should be written in a straightforward manner.
- Tell the client clearly that what actions you are going to take against him.
- Taking punitive measures against an account of the client can make the client lose the credit. Announcing will let the client know so he will take steps to save the credit.
- If you have written many warning letters prior to writing punitive measures announcement letter, mention it in the letter.
- Keep the tone of the letter formal.
- Make sure that you write all the facts in the letter that forced you to decide what punitive measures to take.
A sample letter
As you know, our company has a very strict credit policy and considering our 60 days terms with you, the invoices have gone long overdue. We have been trying to chase this payment and giving you time for reconciling your records, but you have not been following your suggested payment dates. This has caused us not only serious cash flow problems but also taking our additional time to chase this payment.
Can you please make up for this payment at your earliest? We will be reviewing our trading and payment terms with you once the payment is received.
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Sample letter 2
Dear ‘Name of Client’,
This letter is being addressed to you a warning letter. Due to the defaults on your behalf regarding your credit account, we are issuing this warning letter to you. ‘Details of the issue’.
If the issue remains unresolved on your behalf, the organization will have to take punitive measures against your account. You will find our organization’s policies that are to be followed by the client attached to this letter. Please remember to abide by the rules in the future.
If you have queries, please visit your local branch or contact us at [Contact] or [Text].
Sincerely,
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