Successful Debt Recovery for a Silicon Valley Software Company
Apr 01, 2025
In September 2024, a leading software development company based in Silicon Valley, California, encountered a significant payment dispute with a large North American bank. The issue arose when the bank failed to settle an unpaid invoice amounting to $119,070.00, stemming from an auto-renewal subscription agreement. As per the contractual terms, the bank was required to provide a 60-day notice of non-renewal; however, this was not honoured, making the renewal legally binding.
Our Approach
Our team initially sought an amicable resolution, engaging in multiple negotiations with the bank’s representatives to recover the outstanding amount. Despite our persistent efforts, the debtor delayed responses and failed to provide a clear commitment to payment. Recognising the risk of further delays, we escalated the matter by issuing a final notice in October 2024, warning of accumulating late fees, contractual finance charges, and potential legal and regulatory consequences under New York banking regulations.
Legal Escalation and Resolution
With no response from the bank, we initiated legal escalation in November 2024 by engaging a reputable New York-based law firm to reinforce the demand for payment. The law firm issued a formal legal demand and was prepared to proceed with litigation if necessary. Faced with the increased pressure, potential reputational damage, and looming legal costs, the bank acted swiftly. By December 2024, they processed the full outstanding amount of $167,953.10, successfully closing the case.
Why Our Approach Works
This case highlights our strategic and assertive approach to debt recovery. By leveraging professional negotiation tactics, legal escalation, and regulatory pressure, we ensure that our clients recover what is rightfully theirs. Our process is designed to secure payments efficiently while minimising financial risks and delays.
Get Expert Commercial Debt Collection Assistance
If your business is facing unpaid debts, our Commercial Debt Collection Service can help. We implement a structured 30-day Chase Campaign, which includes weekly emails and daily calls to debtors. If payment is not secured within this timeframe, we offer legal assistance to escalate the matter. Contact us today to discuss how we can help you recover outstanding payments efficiently and professionally.
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The information provided in this post is based on general principles and may not apply to specific legal situations. Laws and regulations vary by jurisdiction and can change over time. Readers are advised to seek professional legal counsel before making any decisions based on the information provided in this blog post. Payfor Ltd is not a law firm and does not provide legal services. The company disclaims any liability for actions taken based on the contents of this blog post.
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