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Inform the person assigned to opening mail to watch every day for all returned mail marked ‘undeliverable’ or ‘no such address’ or ‘new address unknown’.  This mail may have been mistakenly returned but it tells your firm a number of things if watched closely.

Why you get returned mail and what to do:

• Wrong customer address: Returned mail means you do not have the right billing address. Call the customer and speak to the buyer if necessary to clarify the address.
• Customer moved and you did not know it. Find out.
• Customer closed or shut down this facility. Find out who is paying the bills now that one of the offices are closed. Where did accounts payable move to?
• Customer is out of business and did not tell you. If he is bankrupt, the court will be telling you. Whatever the reason, react immediately on the day you get returned mail.
• Do not put the envelope back in a mailbox hoping it will be delivered. You delay getting a definitive answer for another two weeks when it comes back again and you have no further information.
• Remember, when one of your customers is having financial difficulty, do not stop talking to them if they still owe you money. Know where they are, what their payment status is with your firm and stay in contact with them. Not all returned mail will involve companies going out of business, but sometimes it will be your first notice of a default.
• Payment you made to a vendor is returned. Call the vendor. He may cut you off on a critical shipment you ordered since he thinks you have not paid him or at least tried to.  He will appreciate your call since you are trying to give him money.
• Paycheck stubs for your employees returned undelivered means they have moved and they did not tell you. Notify them so their W2 is forwarded correctly.
• Advertisements from your firm that are returned should be noted so that no more postage money is wasted on an incorrect address in the future.
• Tax payments to the county or city should be forwarded immediately to the correct address. Call them as soon as possible. You do not want penalties assessed, especially when you tried to pay your taxes on time.

On the day you get a returned item, call the customer or vendor that day.  Speak to someone on the telephone and ask them for the correct mailing address.

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