Dispute Resolution vs. Debt Collection

Let’s have a look at some of the biggest reasons debtors don’t pay your account. A lot of debtors don’t pay their accounts because there is a simple dispute that the creditor might feel is the debtor’s way of wasting time or prolonging payment.

This might be true, but in most cases, we deal with the debtor feeling bullied into paying for an account they might have a simple query on. For example: ‘The description of the item on the invoice is incorrect’.

The creditor possibly feels the debtor is wasting time and gets frustrated so hands over the account for collections. The debtor on the other hand possibly feels unheard and frustrated that the account is handed over when in fact the dispute was never about paying or not paying but merely an error that needs to be amended. Sounds simple, doesn’t it?

 

Why it’s important to resolve your debtors’ queries:

  1. The longer an account remains unpaid, the less likely you will be successful in recovering the debt.
  2. You end up ruining your business relationships.
  3. Resolving the query could result in payment.
  4. Disputes make it more difficult for collection agencies to do their jobs as the debtor is now annoyed by the fact that the account is handed over and ultimately refuses to speak to the collector.
  5. Generic letters are likely to be discarded or ignored if a dispute is not resolved and ultimately no recovery is made.

 

Why it’s important to listen to debtors and understand their situations:

  1. Forcing debtors into payment plans they can’t fulfil helps nobody.
  2. Trying to force a debtor to pay more than their cashflow allows just stalls the collection process and further degrades the relationship between the collector and debtor.
  3. Finding out the reasons why a debtor hasn’t paid goes a lot further than throwing around accusations. Once you understand why the debtor isn’t paying, you’ll be far better prepared to work with the debtor until the account is paid in full.
  4. Harassing collection efforts do not work! They alienate your debtor and are highly unethical furthermore, harassment or making threats to debtors is illegal and very strictly enforced.
  5. Firm but courteous collection efforts are more likely to produce fruitful results than angry, emotionally charged ones. If you are fair and level-headed with your customers/debtors, they will be much more willing to work with you.

 

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Cindy-lee Payne
Cindy-lee Payne
2018-10-15T10:50:14+0000
would like to thank Kaylee and Cathleen for an awesome service. friendly and very professional. would definitely recommend their serviceread more
Chandre Greeff
Chandre Greeff
2018-01-22T17:54:57+0000
Geraldine Bruce
Geraldine Bruce
2018-01-21T14:46:21+0000
Mervyn recently assisted me in a case against one of the largest financial institutions. I had really run out of options and Mervyn's knowledge and expertise convinced me right away that he was the one I wanted on my side. Mervyn and his team worked tirelessly and professionally to conclude the matter and I am extremely grateful my 3 year nightmare is finally over. I would definitely recommend Vermeulen Attorneys.read more
Christopher Evans
Christopher Evans
2018-01-14T10:09:01+0000
I am very impressed with Mervyn's professionalism, and willingness to go the extra mile. Vermeulen Attorneys have really outdone themselves in assisting me in a very trying time.read more
Cathy Foster
Cathy Foster
2017-05-18T11:06:03+0000
I have been using Vermeulen attorneys for more than 3 years in my business. I have had nothing but excellent service and regular feedback on all my cases. I highly recommend them.read more
Liyana Van Heerden
Liyana Van Heerden
2017-04-05T12:58:04+0000
Excellent feedback and Results. Vermeulen Attorneys handle all our outstanding accounts and have always proven themselves worthy of settling payment in the shortest of time frames. Their rates is affordable from small to big operating companies. The give excellent feedback so you always know where your case is standing. Glad we started working with them as they are saving us a lot of trouble and money.read more
Rina Snyders
Rina Snyders
2016-09-14T07:57:34+0000
WOW! Vermeulen Attorneys is nothing short of AMAZING. They handled my case so professionally and made sure justice was served. I am so grateful to have a lawyer like Mervyn represent me. Thank you. Your work is exceptional.read more
Daniela Pucci
Daniela Pucci
2016-08-02T14:22:30+0000
Cannot thank Vermeulen Attorneys enough for the wonderful services delivered from start to end. Due to your attentive & professional advice received on the matter, this created a preferred environment for ones difficulties in any situation. Thank you! this ensured a we underwent kept every attribute to the situation.read more
Pieter Van Rooyen
Pieter Van Rooyen
2014-02-09T17:09:33+0000
Lorraine Sigasa
Lorraine Sigasa
2014-02-04T23:49:12+0000
Bianca van Heerden
Bianca van Heerden
2014-02-04T11:36:33+0000
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