Throughout 2016, our firm managed roughly 150 collection matters and returned the following amounts to our creditor clients:
- Principal: $4,711,069.78
- Interest: $7,382.82
- Fees: $7,030.74
A large percentage of these recoveries involved perfection of a lien or bond claim right, which has the benefit of securing a client’s receivable until payment is received, and we believe that should be a top priority. Here is one sample recovery:
On May 27, 2016, a client referred an open balance of $237,776.16 relating to a construction project in Alameda County, California. The customer, a subcontractor, was at odds with the prime contractor over unapproved change orders. We discovered that the property owner was refusing to honor certain draw requests solely because the customer didn’t receive written approvals for the changes. As soon as that information surfaced, our firm recorded a stop payment notice and a lien claim pursuant to California statutory requirements. The stop payment notice resulted in the lender withholding 150% of the claim amount and the lien claim created an encumbrance against the real property.
Even though payment wasn’t issued immediately, our strategy put the client at ease because the receivable was fully secured. Sixty days later the client was in receipt of the principal, and we were also able to overcome the prime contractor’s objection to payment for material that was not shipped directly to the project site.
Contact Ted Levy at tlevy@levy-law.com or by phone at 206.745.9904 if you have a past-due account or just want to ensure that you are taking all necessary and available steps to secure your receivables.
