How to deal with a disputed bill Problem solvers
Disputed demands
If a company asks me for money that I don't owe, should I refuse to pay?
You are well within your rights to do so, but there is a danger that the company may put a bad reference on your credit file. If it does, there are steps you can take to get it corrected. The alternative is that you ‘pay under protest’, making it clear that you don't agree that the company is entitled to the money and that you will claim it back.
Speeding up the process
If I'm getting nowhere with my complaint to a company about a false debt, can I do anything to speed things up?
If the company won't accept what you are saying you may need to give it an ultimatum. If there is an alternative dispute resolution (ADR) process open to you – for example, the Financial Ombudsman Service – tell the company it should accept what you say, or issue a letter of deadlock.
If ADR isn't available and you are confident in your case, you could make it clear to the company that it has to either drop the claim or take action against you – but stop threatening you.
Complaining to the ombudsman
I want to take my complaint to the ombudsman. What sort of evidence will I need to supply?
Make sure the ombudsman knows about the tactics the company has used and the distress that it has caused you, and ask that this is taken into account. Usually, you should include all correspondence between you and the company so that you can show the efforts you've made to convince it and how these have been ignored.
Don't let the company distance itself from the tactics used by a debt collection agency: the company chose to instruct it and should be held accountable for its actions.
The actual evidence you send will depend on your case. For example, if your credit card was used to buy goods in the UK when you know you were on holiday, you could send the ombudsman the invoice for your holiday or a copy of your tickets.
If you are being chased for non-payment of a bill you've settled, a bank statement showing the money going out of your account may help your case.
Going to court
Is there any point in taking a company to the small claims court?
Before you start any court action you must send a letter giving the company one last chance, with a reasonable deadline, to meet your demands.
Always consider, though, whether you'd be better off using alternative dispute resolution. For example, the Financial Ombudsman Service is free and informal, and an ombudsman could take into account factors that a judge couldn't, such as the distress you've been caused.
If you haven't made any payment you couldn't go to the small claims court, as you've suffered no financial loss. But if you paid under protest to protect your credit history, you would have suffered a financial loss and you could take the company to court.
