When a reconciliation request is refused or ignored

Fix the delivery before anything else

A large share of ignored requests were never properly delivered. Re-read the notice clause and check three things: the exact address or email specified, the required method, and whether notice to a servicer counts as notice to the holder. Send it again by the required method, keep the delivery receipt, and copy any servicing contact separately by email so there is a second trail.

Make the second request harder to refuse

Include, in one document:

• The section number you are invoking and the period covered, matching the contract's definition.
• Complete bank statements for the period, and processor statements for a card-based deal. Complete, not extracts.
• The arithmetic done for them: actual receipts, the specified percentage, the resulting entitlement, the amount actually debited, the difference.
• The specific relief requested — a refund, a credit, or a reset of the debit to a stated figure.
• A reference to the first request by date and method.
• A request that any refusal state the reason and the contract section relied on.

Asking for the reason in writing is the part people leave out, and it is the part that matters later.

Escalate inside their organisation

Ask for the name and title of the person deciding, and for a supervisor. Ask what additional documentation would satisfy them, and supply it. Ask whether reconciliation is handled by a different team from collections, because at some holders it is. Keep every reply.

Run a parallel track

While the reconciliation request is open, make a separate written proposal for a temporary modification with a specific weekly figure and dates. Two requests are not inconsistent — one asserts a contractual right, the other asks for a commercial accommodation, and a holder that will not do the first sometimes does the second.

Keep paying if you possibly can

Stopping the debit converts a documentation dispute, where you are the party with the paperwork in order, into a default, where you are not. It also frequently disables the reconciliation right itself, since many clauses are conditioned on the merchant not being in default. If payment is genuinely impossible, say so in writing before the debit fails rather than blocking it.

What the arithmetic in the request should look like

Vague requests get vague answers. A request that does the funder's work for them is harder to leave in a queue.

Actual receipts for the month just ended were $91,400 across 21 banking days. Twelve per cent of that is $10,968, which over 21 debits is $522.29 a day. You were debited $780 a day, or $16,380 for the month. The overcollection is $5,412.

Set it out exactly like that: the contract percentage, the period, the actual receipts with the statements attached, the entitlement, the amount taken, the difference, and the specific relief — a refund of $5,412, or a credit against future remittances, and a reset of the daily debit to $522.29 pending the next review.

Two details that decide whether the calculation is accepted. Use the agreement's own definition of receipts, which may exclude refunds, chargebacks, transfers or non-card income, and say which definition you applied. And cover exactly the period the contract specifies, rather than the period that suits your argument.

A request in that form can be refused, but it cannot be refused on the ground that it was unclear, and the refusal then has to say something.

Why the record matters beyond the immediate dispute

Whether a transaction is a purchase of receivables or a loan has been litigated in several states, and courts examining the question have weighed features including whether there is a reconciliation provision, whether the funder has recourse if the business simply fails without breach, and whether the agreement has a finite term. How a reconciliation clause operated in practice can therefore be relevant to more than the current month. That is a description of an analysis, not a prediction about your case, and it varies by state and by facts.

Keep everything: requests, statements, delivery receipts, replies, call logs with names and dates.

What escalation outside the company looks like

Where the funder will not engage at all, a few external routes exist. None is a remedy in itself, and it is worth being realistic about what each does.

What to do while it stays unresolved

Keep the debit clearing if it is at all possible, for the reasons above. Keep a single dated file containing every request, every reply, delivery receipts, and a call log with names and times. Continue to make the separate commercial proposal, because a holder that will not concede a contractual right will sometimes grant an accommodation that achieves the same cash outcome.

And run the arithmetic again each month rather than letting the original request go stale. A refusal that was arguable against one month's receipts becomes much harder to maintain against four consecutive months of the same calculation, delivered the same way, each one referencing the last.

This is general information rather than legal advice. Whether your clause creates an obligation, and what a refusal means, depend on its wording and on the governing state's law — a lawyer licensed in that state is the person to assess it.