One of the most common concerns a business has before referring an account is: what if the debtor disputes it? The short answer is that a genuine dispute changes the process, but it does not end the recovery.
What a dispute means in practice
Under the ACCC and ASIC debt collection guideline, when a debtor raises a genuine dispute about whether the debt is owed or whether the amount is correct, the recovery firm must pause collection of the disputed amount while the dispute is investigated. This is a regulatory obligation, not a concession — and it applies equally to all compliant collectors.
Not every objection is a genuine dispute
There is a difference between a genuine dispute — a debtor who says the work was not done, or the invoice is wrong — and a debtor who simply does not want to pay. The former needs investigation. The latter needs consistent follow-up. An experienced recovery firm can tell the difference.
What documentation does
The single best defence against a dispute is documentation. A signed agreement, a detailed invoice, a record of delivery or completion, and a prior acknowledgement of the debt all make a dispute significantly harder to sustain. This is why the quality of your file at the time of referral matters so much to the outcome.
How disputes are resolved
Once investigated, most disputes either resolve (the debtor acknowledges the debt and makes payment or arrangement) or are escalated for further assessment. Where a dispute reveals a genuine error in the claim, the amount is corrected. Transparent, documented handling throughout is what keeps a dispute from becoming a complaint.
Merion handles disputes as part of the recovery process. Refer your account and we will manage it from there.