What is claim letter? | Type of claims

When affected buyer writes a letter to the seller raising complaints and demanding compensation, it is known as clam letter. Generally, a losing buyer writes claim letters to the seller. However, sometimes the buyer writes the letter to the transportation authority if any damage is caused by their negligence. Again, seller or transportation authority may also write a claim letter to the buyer claiming their demand.

Quible and Others defined, “A claim letter is a message designed to inform its recipient about the writer’s dissatisfaction with a product or service.”

According to Himstreet and Baty, “A claim letter is a request for adjustment. When writes ask for something to which they think they are entitled refund, replacement, exchange, payment for damages and so on the letter is called a claim letter.”

From the above discussion, it can be concluded that when customer writes a letter expressing his dissatisfaction with the purchased product and claims compensation, it is called claim letter. Although a phone call or personal visit may solve the problem, a written claim letter is better as it is a document of customer dissatisfaction. As the volume of operations of a business increases, the frequency of claims letters may also increase. The manner in which an organization deals with the claims of customers affects its reputation.

Methods of Writing Collection Letters

Mode of claims or Type of claims

Although claim letters are written for possible compensation or adjustment but the mode of claims asked for are not always the same. Depending on the nature of damage or loss, the buyer can claim one or more of the followings:

  • Partial or full refund of purchase price of the product or service.
  • Future delivery of the products with correct items.
  • Replacement of defective products.
  • Repair of the damaged products.
  • Reduction in the price.
  • Credit the amount to purchase account.
  • Cancellation of order or portion of order.
  • Rescheduling the payment installments.
  • Correction of error in bill.


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