Left to Fester

Written by

Time and time again we see situations where a debt has been left for so long that the client and customer relationship has broken down. Usually this happens because someone is not dealing with complaints or customer service issues and because of this disputes and problems are left to fester.

Often many thousands of dollars are left sitting on accounts ledgers because the business does not have adequate complaint policies in place.

One of the biggest problems is when the dissatisfied customer has to employ another service provider to fix issues that have not been rectified, this is when it becomes really difficult as a debt collector to convince the customer to pay, as they have now incurred double the costs.

Dispute resolution is one of the main issues we deal with at our agency and honestly a good percentage of debts could have been avoided. A simple paragraph in your documentation or a process customers can follow on your website regarding complaints resolution is all that is needed.

Preventing debts from being left to fester.

Both parties have the rights when it comes to disputes, there are to main areas that cover small businesses, the first is the Australian Consumer Law (ACL) and the Competition and Consumer Act 2010 (CCA) (formerly the Trade Practices Act 1974). Further to these the Australian Competition and Consumer Commission (ACCC) is the national government agency which promotes compliance with the CCA and, where necessary, takes legal action against businesses that break the law.

If you are a business owner the ACL automatically provides your customers with a basic set of consumer guarantees when they purchase your goods or services.
Your customers have a right to have a problem with a product or service remedied if it fails to meet the guarantee.

Further to this you have a right to remedy a problem with a product or service, this means a customer cannot refuse your offer to remedy a problem and employ another person for the remedy.

Having said this, policies on time frames and documentation when a job has been finalised are imperative to protect both you and your customers. Having documentation in place for your customers to sign when a job is completed that they are satisfied with the job provided makes it clear for both you and your customer that there is closure at the end of the job. In the event your customer is not happy with the job, you also need a specified time frame and form for your customer to fill out and then an outline of how you will remedy the problem.

By taking these simple steps before any disputes result and save you a great deal of pain in the long run.

If your staff understand the process then it becomes a simple process to follow to ensure customer satisfaction and your customer relationship are not left to fester but allowed to flourish as they should.

Please find a here an excellent document that explains the rights and obligations of both parties and an example of a disputes resolution form you can use is your organisation.

Learn the key elements to making sure you get paid for the work you've done.

Haven't signed up yet? Really?! Well, here's what your missing out on...

  • Full Access to The Seven Steps to BCA Debt in your Business and the 7 Lesson in Accounts Management. +

    There are 7 steps that we walk you through, these steps build your accounts management system which ensures you get paid for the work you have done and you know your customers have the ability to pay you before you do any work for them. Read More
  • Terms and Conditions +

    We walk you through this process to ensure you have the ultimate Terms and Conditions, customised to suit your business. Read More
  • The Debt Recovery Blitz +

    Get your money back into your bank account, we will help you increase cash flow from within your debtors ledger. Read More
  • Core Policy Document Suite +

    You we give you a suite of documents designed to support your Accounts Management System, everything you need to raise your standards in customer service. Read More
  • Current Customer Induction +

    These are your business ambassador’s show them how you you are improving your systems and ultimately the service you provide them.
  • Collateral Update +

    Ok, this is all the annoying little jobs that need to be done, like update the website T&C and Privacy Policies. We have streamlined this for you and give you the html docs to get your web developers to upload. Read More
  • Secure your Assets +

    We help you determine if your business would benefit from the Personal Property Securities Register, which can put you on equal footing with secured creditors like the banks. Read More
  • Debtor Management 2.0 ??? +

    Make sure your customers have the ability to pay you before you have even done any work for them. Read More
  • 1

In a recent survey my clients
identified having a system for

Accounts Management

to be one of the top area's
they struggled with.