Referring a disputed debt
Handle a debtor who says they will not pay because something is in dispute.
What this play helps you do
- Tell a genuine dispute apart from a stalling tactic
- Document the dispute cleanly before referring
- Set client expectations for contested matters
- Understand how Merion approaches a disputed balance
- Decide what to refer and what to resolve first
6 min
When to run this
Run this play when a debtor is not simply ignoring the invoice but actively claiming they do not owe it — citing quality issues, a pricing disagreement, or work they say was incomplete. Disputed debts need a slightly different approach to a straightforward overdue account.
How it works
First, separate a genuine dispute from a convenient excuse. A genuine dispute is specific and was raised early; a stalling tactic tends to surface only when payment is chased and stays vague.
Where part of the balance is undisputed, that portion can often be pursued while the contested part is set aside. Merion can review the matter, engage the debtor professionally, and press the undisputed amount while seeking clarity on the rest.
What Merion needs
For a disputed debt, supporting paper matters more. Provide the invoices, the terms of trade or signed agreement, any quotes or scope of work, and the correspondence where the dispute was raised. This lets Merion assess the substance of the claim rather than relying on assertions.
What to tell the client
Be candid that contested matters can take longer and that the outcome may turn on the documents. Reassure the client that referral is still low-risk: Merion remains commission-only, the matter is handled in confidence, and you stay their adviser throughout. Then submit it via the refer a debt form, or test the prospects first with a free debt appraisal.
Key takeaways
- Distinguish a genuine, specific dispute from a vague stall.
- Undisputed portions can often be pursued separately.
- Strong documents matter most in contested matters.
FAQ
Can a disputed debt still be referred?
Yes. Merion can review the dispute, pursue any undisputed portion, and engage the debtor professionally on the contested part. Good documentation strengthens the position.
What if the dispute looks legitimate?
It may be worth resolving the substance first, then referring any genuinely outstanding balance. A free appraisal can help you and the client decide.
Does a dispute change the commission-only model?
No. The arrangement remains no-recovery-no-fee. The client carries no upfront cost to have the matter reviewed and pursued.
Run the play — we'll handle recovery
Commission-only recovery your clients can trust. No recovery, no fee.