This fact sheet outlines how your business can manage a dispute.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n
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- sending an invoice to the wrong person in a business;<\/li>\n\n\n\n
- not being clear on when payment is due;<\/li>\n\n\n\n
- failing to include precise payment details of where to pay you;\u00a0<\/li>\n\n\n\n
- detailing a different amount of money than that which you agreed to originally.\u00a0<\/li>\n<\/ul>\n\n\n\n
Beyond mistake, there are also other reasons a customer may dispute a debt with you. Some examples of these are where:<\/p>\n\n\n\n
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- the debt is not the customer\u2019s to pay;<\/li>\n\n\n\n
- the payment amount is incorrect;<\/li>\n\n\n\n
- the provided goods are faulty (or allegedly faulty);<\/li>\n\n\n\n
- service is poor (or allegedly poor);<\/li>\n\n\n\n
- late delivery occurs; or<\/li>\n\n\n\n
- your customer does not have the funds.<\/li>\n<\/ul>\n\n\n\n
What Do I Do if My Customer Disputes a Debt? <\/h2>\n\n\n\n
If your customer disputes a debt with you, you should try to resolve it as soon as possible. Sometimes, this can be as simple as a gentle reminder about the payment and a discussion about the debt. You must also take the dispute seriously and respect that it may be genuine. Your customer is essential to your business, and how you handle a dispute will reflect this.<\/p>\n\n\n\n
Potential Valid Dispute<\/h3>\n\n\n\n
There is an essential point when, if your customer disputes a debt and it appears the dispute is valid<\/a>, you should stop any steps you have taken to recover your debt. Valid grounds could include where:<\/p>\n\n\n\n
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- your customer is not the actual person who owes the debt;<\/li>\n\n\n\n
- there is no debt in question; or<\/li>\n\n\n\n
- there is a dispute about the amount of the debt.<\/li>\n<\/ul>\n\n\n\n
If your customer disputes a debt and their claim could be valid, you should ensure that you:<\/p>\n\n\n\n
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- look into the dispute;\u00a0<\/li>\n\n\n\n
- give your customer details of the amount of money they owe;<\/li>\n\n\n\n
- establish whether the customer is the person who actually owes the debt if they claim they are not; and\u00a0<\/li>\n\n\n\n
- show the debt amount is correct where the customer disputes this.<\/li>\n<\/ul>\n\n\n\n
You must make sure you have a timeframe for the total debt dispute resolution process, after which you will expect your customer to make payment. Once you have investigated the debt dispute, and it is on a valid ground, you should give your customer the results of your investigation. At the end of the timeframe will be when you decide to allow an experienced debt collector, debt collection agency or other third party to collect your customer\u2019s debt<\/a>. This may be, for example, after 30 or 45 days.\u00a0<\/p>\n\n\n\n
A third-party debt collector may be successful in resolving the debt dispute and payment. Alternatively, if this is unsuccessful, you may need to take legal action. Where a debt dispute is not genuine but just a delay tactic for making payment, a letter from a lawyer may be enough to encourage payment. <\/p>\n\n\n
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\n \n How to Manage a Business Dispute<\/div>\n\n