Unfair billing: how does this error harm your company?

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Undue charges harm your company's relationship with the customer and can also cause losses, such as legal damages, fines and lawsuits, in addition to affecting your organization's reputation and image.



Charging a consumer for a debt they do not owe or have already instagram database is a mistake that occurs due to a failure in the company's payment system or a lack of organization in the collections department. Below, we will talk more about undue charges and how your company can avoid charging a customer unduly.





What is an undue charge?


An undue charge is a debt charged to a customer for a debt that he has already paid or that he has not even made. This situation also occurs when the company charges the consumer an amount different from the agreed amount.



When this error occurs, the customer may not recognize the debt and choose not to pay. In this case, the company, by not identifying the payment, may end up putting the customer on the negative list. In other situations, the consumer is afraid of not paying and having their name tarnished, so they end up paying the amount, even though the charge was undue.



If the error is proven, the undue charge may generate legal sanctions for the business, such as the payment of compensation to the consumer.





How to prevent your company from making an undue charge?


Organization is the first step. Therefore, always keep all your customer information organized and up to date. This includes registration data and reports on purchases and payments. If your company has a system that records receipts, always keep it updated and available to the employees responsible for collections.



Recovering credit is essential for the financial health of your business. Therefore, this stage of the credit cycle must be carried out carefully to avoid errors such as undue charges that can harm your company.





How can undue charges harm your company?


Improper billing can harm a business in many ways, especially if the error takes a long time to be identified and corrected. Below, we list the main ways in which this error can impact your business.





It damages the company's reputation


When browsing social media, you may have come across negative reviews of other companies. This is quite common when customers have a bad experience with a brand.



A negative opinion about a company damages its reputation and impacts future customers' purchasing decisions. This is because word-of-mouth marketing is still a decisive factor in closing deals.





Impacts customer relationships


The relationship between the customer and the company is damaged when the consumer is charged unduly for a debt that has already been paid or for a purchase that has not even been made. If the error is noticed quickly and the situation is resolved immediately, the relationship with the customer can be restored.