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February 03, 2009
A dollar in the hand. . .
Many companies find that filing paid disputes can be a safer way to deal with their vendors. They feel that it keeps the dispute negotiations from moving to disconnect letters or freezing of provisioning orders. In my experience, it also limits your negotiating power and will negatively impact the amount of the final settlement. Having the money in your bank puts the vendor at a disadvantage and can often influence their settlement offers.
It is imperative that you consult the vendor’s tariff, usually in the Obligation of the Customer section, prior to withholding monies. The vendor’s approved tariff may give them the authorization to demand full payment pending resolution.
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