Bill Dispute with Contractor

[John T.]

Perhaps I have been lucky to avoid this on the first handful of properties but I recently had my first dispute with a contractor.  I received a bill for much more than we agreed to.  I called several times to try to straighten it out but was never called back.  I recently received a notice from them saying pay the bill or it'll go to collections.  I contacted them via there website to dispute this.  I have know received a letter from the collection agency saying they'll report it to a credit bureau unless I get in touch with them in 10 days.  I called the contractor again but again just speak with the secretary and probably will not receive a call back.

A couple of points.  I never signed anything period with them.  As a buy and hold investor my credit score has a big impact on my business.  I want to know what leverage I have here to prevent any impact to a credit score.  I don't see how they have a leg to stand on if they don't have any type of contract for the work done but I'm not sure how to use that to prevent this action from being taken on me.  Only thing I can think of is possibly filing a complaint with the BBB or having my lawyer send them a letter to make them realize if they do this unjustly they may have to pay for the financial damages it causes.  I've never done either of these actions and have worked with great contractors in the past but this one to me is the definition of slimy contractor so I want to know what options I have to combat this.

Appreciate any/all input