BBB dispute resolution versus small claims court: What's more affordable?
Every business owner wants to save on costs. That’s especially true when it comes to disputes. Whether a disagreement happens over a product, a service, or a contract, it’s all part of doing business. When they arise, small claims court might seem like a natural option – but it’s not the only option. In fact, it may not even be the most cost-effective choice.
BBB has your back in a lot of ways, but one of the biggest is BBB’s dispute resolution services. Just like you would call roadside assistance for car trouble, these services are at your disposal for disputes. They’re free for BBB Accredited Businesses and offer a smoother and more affordable path to resolving issues that escalate beyond your control.
Protecting your reputation is always the priority, but how exactly do BBB’s dispute resolution services outperform small claims court? Let’s break down the benefits…
1. Saving you money
Small claims court can be relatively cheap – but BBB Mediation and Arbitration offer quicker, less adversarial ways to resolve disputes while giving both parties more control over the outcome. Plus, Accredited Businesses enjoy unbeatable cost advantages. Here’s a snapshot of the average costs associated with Washington, Idaho and Colorado small claims courts:
* These combined costs (filing fees, serving fees, attorney costs, along with possible additional time and administrative fees, led to the estimation of $230 to $1,000+. However, this estimate may vary greatly by state and case complexity.
Here are those same costs for BBB Accredited Businesses:
2. Providing expert guidance
Handling a dispute can be overwhelming, but with trained mediators, BBB guides both parties to a fair resolution. You don’t need to worry about navigating legal procedures or hiring an attorney (although parties are allowed to have an attorney present).
3. Protecting your confidentiality
Disputes don’t need to be aired out in public. Unlike small claims court, BBB Mediation and Arbitration is confidential, preserving your business’s reputation.
4. Safeguarding your trust and credibility
Using BBB’s services showcases your commitment to fairness and transparency. For both current and future customers, this helps build and maintain your reputation as a reliable business.
5. Preserving your relationships
Mediation through BBB focuses on finding mutually beneficial resolutions that help preserve relationships. You’re not just looking to "win" a dispute in court; you’re protecting customer loyalty and illustrating your commitment to future customers and partners.
6. Saving your time
Going to small claims court means time away from your business – gathering documents, attending hearings and waiting on outcomes. BBB Mediation and Arbitration services are designed to be quick, resolving disputes in as little as two weeks so you can get back to focusing on your business.
7. Avoiding additional unforeseen expenses
Small claims court can bring surprise expenses, too, like travel costs, fees for lost documents and time away from work. By using BBB, you reduce these unexpected costs with an affordable and predictable process.
How to resolve a dispute with BBB
If you’re a BBB Accredited Business, leveraging BBB's dispute resolution services is simple:
Final thoughts
Tackling disputes effectively is more than just a matter of “winning” in court. It’s about protecting your brand, and BBB Arbitration and Mediation is an affordable, efficient, predictable, and relationship-friendly insurance policy for your reputation.
But in the end, it isn’t just about resolving conflicts. It’s about staying focused on what really matters – serving your customers and growing your brand. When you show your customers that you value fair and transparent resolutions, it builds trust, retains customer loyalty, and reinforces your business's positive reputation.
When you become BBB Accredited, you gain access to free mediation and arbitration services as part of your Accreditation benefits.
Apply for BBB Accreditation today and ensure your business has access to trusted tools for growth and efficient dispute management.