A billing dispute is when you disagree with the amount charged for a purchase or service. It can also include unauthorized transactions on your bank statement. When faced with a billing error or discrepancy, you’ll want to deal with it quickly so that you recover any losses and/or prevent future ones, such as if someone is scamming you.
In this article, we explain common types of billing disputes, how to correct them, and what to do if you end up in a billing dispute. We also feature why and how hiring a lawyer can help you rectify the situation and recover financial losses.
What are Common Types of Billing Disputes?
Billing disputes can arise over more than simply being incorrectly charged for a product or service. They include:
- Fraudulent or unauthorized transactions on your account.
- Hidden charges.
- Being billed twice for the same purchase.
- Questioning the supplier’s hourly rate, such as if it seems overblown.
- Not receiving items you paid for.
What Should You Do During a Billing Dispute?
If you’ve noticed an error on your statement or you’re questioning a charge, here’s what you can do.
Check for Errors
The first action you should take to resolve the issue is to find proof of the discrepancy or fraud. This could involve printing out your statement or checking receipts.
Communicate with the Company or Supplier
Contact the company or supplier who incorrectly billed or invoiced you. Send them a letter in writing so that you can keep track of your efforts to resolve the issue.
Usually, this is enough to make them want to rectify the concern.
Review the Contract (if Applicable)
If you signed a contract with the other party, such as if they’re a contractor, you should go back to check the contract to remind you of your rights, both parties’ duties, and how you should deal with the dispute.
You can hire a lawyer on ContractsCounsel, an online legal network connecting clients with vetted lawyers. Simply post a request for a contract review and receive bids from lawyers who will help you check the contract for loopholes, red flags, and any other important information that strengthens your position during a billing dispute.
Escalate the Issue if Required
If you’ve tried to speak to the other party about the billing dispute but they don’t help you, follow their internal procedures for escalating your concern. This could include speaking to a manager. Keep everything in writing so that you have proof of the interactions.
How Can You Prevent Billing Disputes in the Future?
There are ways in which to protect yourself when making payments in the future. Here are some things to bear in mind.
- Always review your invoices carefully. Calculate the amounts yourself to check for any discrepancies or errors.
- Check contracts before signing. If you’ve hired someone to work on a project and you have a contract governing your working relationship, you should get it legally reviewed by a lawyer from ContractsCounsel before signing it. They’ll also clear up any vague or confusing terms.
- Regularly review your bank or credit card statements. This will ensure you stay updated on any strange or incorrect payments that you might’ve otherwise missed.
- Keep records of previous transactions and purchases. Print out orders, invoices, and proof of payment so that you have all the documents required if necessary.
When Should You Call a Lawyer for a Billing Dispute?
Sometimes contacting the company about the billing dispute is enough to state your case and get a refund or other remedy. However, if the dispute is continuing or escalating, it’s worth contacting a lawyer for assistance.
Here are other times when you should seek legal guidance.
- You’re dealing with an expensive loss.
- You’ve been scammed.
- The dispute involves a contract breach.
- The other party isn’t responsive or helpful.
Here’s how a lawyer can help you navigate a billing dispute.
They Remind You Of Your Rights
They’ll review laws and, if applicable, contracts between you and the other party so that they can remind you of your duties and rights.
They Negotiate with the Other Party
A lawyer will be able to communicate with the other party, which is especially useful if they’re non-responsive, and negotiate with them so that you can have a favorable outcome.
They Organize Your Evidence
If you’ve already collected all the documentation you need to state your case, your lawyer will help you to organize it and guide you on what items will help you get a favorable outcome.
They’ll Represent You if Required
In cases where the billing dispute isn’t resolved and you need to go to court, your lawyer will help you with their legal knowledge and expertise. They’ll guide you through all the steps of the legal process and represent you in court.
What are Your Legal Options for Resolving a Billing Dispute?
You have many options to legally fight a billing discrepancy. Here are some your lawyer can help you with.
Mediation
The courts favor mediation because it enables you and the other party to connect and collaborate on finding a resolution to the issue. How it works is that your communication will be overseen by a third-party mediator who will encourage constructive talks so that you can end the dispute.
Arbitration
When you and the other party can’t reach an agreement on your own, you can hire an arbitrator to assist you. This third-party individual will listen to both of your cases and go through evidence presented, before making a final, legally-binding, decision to help you resolve the issue.
Small Claims Court
If you can’t resolve the situation via mediation or arbitration, your lawyer might suggest going to small claims court. This is suitable for disputes where you’ve lost a small amount of money. How it works is that you’ll present your evidence and a judge will decide on a resolution.
Litigation
For serious cases, such as contract breach or fraud, your lawyer might suggest taking the dispute to court. However, there are other things they can try before the dispute escalates to this point, such as sending demand letters to put pressure on the other party to remedy the situation.
Do you need a lawyer for your billing dispute?
It’s worth consulting with an experienced lawyer to explore your legal options. Contact a lawyer from ContractsCounsel. A vetted, skilled lawyer with years of experience in assisting people with billing disputes will assist you through the process and help you recover your losses.
