Few things in business are more physically, emotionally and financially consuming than disputed debts. Regardless of whether such disputes are genuine or totally made-up in a desparate attempt to get out of paying, persuasive and persistent measures are needed to ensure rapid resolution.
If you find yourself the target of a disputed debt and you want to banish it quickly and efficiently here are the 5 steps you need to follow.
5 Simple Steps To Crush Any Disputed Debt
Step 1: Document Everything In Writing
When you first find out you’re on the receiving end of a dispute it’s vital that you get the complaint in writing. Don’t do what so many do by reactively defending your position or worse attacking the disputer. Doing so will only escalate hostilities and dramatically lessen your chances of a quick resolution.
What you should do is contact the complainant and respectfully thank them for bringing their concerns to your attention. Then say something along the lines of “To help me address all of your concerns I’d really appreciate it if you would write down all of your concerns and have these to me by this time next week.”
So that you don’t get strung along it’s essential that you specify a deadline for response. It’s also very smart to keep a detailed journal of this conversation, taking particular care to note your request for a formal letter of complaint.
Step 2: Respond To The Complaint Letter
By far the greatest benefit of receiving the complaint in writing is that it gives you the time and information to prepare a rock-solid strategic response. As such should complaint letter, the next step is to piece together all your facts and consider your response.
Now if the dispute is simply an oversight or mistake you may be able to satisfactorily resolve the matter over the phone.
Alternatively, if the debtor’s concerns can’t be quickly and easily resolved, you should again get in touch with the debtor, thank them for detailing their concerns in writing and then schedule a time to meet with them.
If, on the other hand you do not receive a written complaint, do NOT presume everything’s now OK. Instead, send them a letter that’s not too dissimilar to a Debt Reminder Letter.
This letter should emphasize the fact that you requested their concerns in writing yet you have not received them. It should go on to say that based on their lack of response you now consider the matter resolved and as such you would appreciate prompt and full payment. Again, give the debtor a maximum of a week to settle the account.
Step 3: Resolve All Complaints
If on meeting with the debtor you deem their concerns to be fair and reasonable then you should do all in your power to resolve the matter quickly and amicably. Don’t mess about! It’s your reputation on the line and if you try to screw them you’ll be hammered by more than just a bitter drawn out dispute.
Now if you satisfactorily address all of the debtor’s concerns it’s essential that you record the details of your actions to resolve the disputeon a Work Completion Confirmation form and getting the debtor sign this form. This document will prove to be extremely powerful down the road should the debtor continue to dispute the debt.
Having attended to the debtor’s concerns it’s appropriate to send them a Debt Reminder Letter stating that as you’ve now resolved their concerns prompt and full payment is now expected.
If on the other hand your debtor continues to withhold payment for any reason then you must send them a Final Demand Letter immediately.
Step 4: Bring Out The Big Guns
If after receiving your Final Demand Letter your debtors persists in disputing the debt that’s proof-positive that you’re now dealing with a professional debtor. As such, there’s only one option open to you and that’s to refer the debt to a Debt Collector.
However, not all Collection Agencies are created equal, especially when it comes to dealing with disputed debts.
It’s vital that you only ever hand such debts over to a recovery agency that is…
a) fully equipped to handle disputed debts, and
b) won’t charge you extra to to deal with such a debt.
You see, the sad reality is that with rare exception collection agencies will point-blank refuse to have anything to do with a disputed debt. Irrespective of whether a dispute is based on fact or clearly fabricated, most debt collectors don’t care. They consider such debts simply too difficult to handle and hence it’s better for them to just throw them back in your lap.
What’s worse, of the handful of agencies that will tackle disputed debts, the vast majority will charge you astronomical fees to do so.
However, while collection agencies that tackle disputes at no extra charge are rare, they do exist and if you’ve got a disputed debt on your lap you should hunt high and low to find them.
Step 5: Reinforce Your Defenses
If in the course of the dispute you discover that you’re inadequately protected against disputes, don’t bury your head in the sand. Rather capitalize on the opportunity presented to you to reinforce your weaknesses with the 7 Pillars of Prevention specifically designed to prevent disputes ravaging your business. Armed with this lethal arsenal you’ll posses unparalleled power to mow down unscrupulous debtors who set out to pillage your coffers.
Bottom Line: If ever you find yourself lumbered with a dispute it’s suicidal not to act quickly and decisively. The longer a dispute goes unresolved the more likely it will deteriorate in to a bitter, spiteful drawn-out fight that drains your resources for little to no reward.
Sticking to the 5 steps above is the most affordable formula for resolving disputed debts quickly and efficiently.
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