Dispute Resolution

Definition: The structured process of resolving disagreements about billing, invoices, services delivered, or account balances through communication, documentation review, negotiation, or third-party intervention.

Examples: A customer and vendor used dispute resolution to clarify inconsistencies in an invoice before the account moved to collections.

A supplier initiated dispute resolution after a client claimed that an invoice included unauthorized charges. Through email exchanges and supporting documents, both parties identified a billing error and adjusted the balance before it escalated into a collection issue.

During the early stages of a commercial collection placement, the agency discovered that the debtor refused payment due to defective goods. By guiding both sides through dispute resolution, the agency helped them reach a credit adjustment that allowed partial recovery without litigation.

Dispute resolution is essential to maintaining accurate financial records and preventing unnecessary chargebacks, delays, or strained business relationships. It gives both creditor and debtor a structured method to verify claims and address misunderstandings before they impact cash flow.

When handled correctly, dispute resolution reduces friction, strengthens transparency, and can even preserve long-term business relationships. It also helps avoid costly legal action by resolving issues at the documentation and communication level.