Jim had worked hard to build his business, which was a small online store selling handmade jewelry. As he watched it grow and the orders roll in, it became increasingly difficult to keep up with the demand. He knew that one of the key steps to growing his business further was properly managing disputes from customers.
One day, Jim received an order from a customer who promptly disputed the charge saying that they had not received any merchandise. The dispute seemed reasonable and so Jim took it seriously hoping for a quick resolution. Instead, he noticed with alarm that the customer had filed multiple subsequent disputes claiming more merchandise than they ever purchased.
It soon became apparent that this customer was attempting to steal money from him through “theft-by-dispute” — a situation in which customers take advantage of the dispute resolution process by disputing legitimate charges with the intent of stealing from them.
Under normal circumstances, Jim would have been helpless in this situation as he had no idea how to properly handle it or where to begin looking for assistance. However, luckily for him, one of his employees suggested reaching out to a professional collection agency for help.
The collection agency quickly located the debtor and used their expertise to negotiate with them on behalf of Jim so that all disputes were properly resolved and all debts were recovered fairly — much faster than if Jim had tried dealing with this himself. At last, Jim could rest assured knowing that his business was saved from this “theft by dispute” disaster thanks to the help of a reputable collection agency.
What Collection Agencies Can Do
The above story is fictional for this blog, but it is a reality for many business owners. We know collection agencies are companies that you never hope to use as a small business owner, but they can be efficient venues for recovering debts you are rightfully owed. They can also help you when you become the target of malicious consumer behaviors.
As a business owner, you understand that dispute resolution is an unavoidable part of doing business. You have probably already established some appropriate systems to manage those disputes as well. However, many business owners face a unique challenge when it comes to “theft-by-dispute.”
This situation arises when customers take advantage of the dispute resolution process by disputing legitimate charges with the intent of stealing from you. Unfortunately, this type of theft can be difficult for businesses to detect and recover from.
Fortunately, collection agencies can help business owners navigate this situation. In this blog post, we examine how they do this and what you should do next if you feel you’re being targeted in a theft-by-dispute situation.
Collection Agencies Focus On Dispute Resolution
Collection agencies are experienced in working with both consumers and businesses involved in a dispute and can provide valuable assistance throughout the entire process. Collection agencies use sophisticated tools, such as data analytics and skip-tracing technologies to locate debtors who attempt to hide or disappear while disputing a debt.
Skip-tracing is the process of locating individuals who have gone “missing” or are difficult to find. It is often used by debt collection agencies, law enforcement, and private investigators for a variety of reasons such as finding missing persons, recovering debts, and gathering evidence in criminal cases.
Debt Collectors Are Tech-Savvy
Modern technology has made skip tracing much more efficient and reliable in recent years. Skip tracers now use sophisticated data analytics tools to comb through thousands of public and private databases quickly and accurately. They can also leverage social media connections, GPS tracking systems, and other resources to get information on an individual’s current location or activities.
Thanks to the power of these technologies, skip-tracing professionals are able to uncover leads that would otherwise be impossible to find – even if someone is trying their best to remain hidden. This means that businesses relying on collection agencies for debt recovery can find closure faster – without having to go through expensive litigation or spend months trying to track down debtors who have seemingly vanished into thin air.
Collection Agencies Are Skilled at Negotiation
Collection agencies specialize in finding creative solutions that work for both parties so that a satisfactory outcome can be reached without the need for legal action. For businesses facing “theft by dispute” situations specifically, they provide much-needed assistance and guidance throughout the entire process.
They use their experience and expertise to negotiate with debtors on behalf of business owners and ensure that all disputes are properly resolved. Additionally, many collection agencies even offer bonding services which can help protect businesses from potential losses due to “theft by dispute” scenarios or other similar issues.
Put a Stop to Theft-by-Dispute Before It Even Starts
Southwest Recovery Services has many years of experience working with the latest technologies and negotiation tactics. We’re aware of the bad actors and how to deal with them. Contact us today if we can help you with your dispute resolution!