QS Study

Meaning of Claim Letter

When affected buyer writes a letter to the seller raising complaints and demanding compensation, it is known as claim 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 the 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 writers ask for something to which they think they are entitled to refund, replacement, exchange, payment for damages and so on; the letter is called claim letter.”

From the above discussion, it can be concluded that when the 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 claim letters may also increase. The manner in which an organization deals with the claims of customers affects its reputation.