Turning a 600-Day Debt Stalemate into a Strategic Settlement
Apr 16, 2025
An AI-powered chatbot company found itself entangled in a prolonged payment dispute with a Clinical Experience Platform. The issue stemmed from a Master Services Agreement (MSA) signed in March 2022, under which the chatbot company delivered custom development services.
Despite fulfilling their contractual obligations, the Clinical Experience Platform failed to settle the $40,020.70 invoice due in May 2022. Over a year later, they raised concerns about the project's outcome, well beyond the agreed acceptance terms.
Initiating Recovery Efforts
In January 2024, Payfor Ltd was engaged to recover the outstanding debt, which had aged over 600 days. Initial attempts to contact the debtor through formal collection notices were met with silence. As the debt accrued contractual interest, the total amount exceeded $46,000.
Recognizing the need for a more assertive approach, Payfor coordinated with legal counsel in New York to prepare for litigation. This legal pressure prompted the Clinical Experience Platform to re-engage in settlement discussions.
Negotiating a Settlement
After rigorous negotiations between legal teams, a formal Settlement Agreement was executed in July 2024. The Clinical Experience Platform agreed to pay $28,500 in two installments: an initial payment of $20,000 followed by a final payment of $8,500. Payfor and its legal partners closely monitored compliance, issuing payment reminders as necessary to ensure adherence to the agreed timeline.
Outcome and Implications
The case was resolved without proceeding to litigation, demonstrating Payfor Ltd's strategic balance of legal escalation and commercial negotiation. This outcome underscores Payfor's effectiveness in handling complex tech-sector debt disputes across jurisdictions, delivering results even in the face of delayed engagement and contractual contention.
At Payfor Ltd, we specialize in global B2B debt collection and commercial debt recovery. Our 30-Day Chase Campaign is designed to deliver results quickly, commencing with weekly emails and daily follow-up calls.
If a debtor continues to withhold payment, we can assist you in pursuing legal action through our established network of legal partners. Contact us to turn unpaid invoices into recovered revenue.
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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