Laundry, the data belongs to the company and not the other way around. They can not hold data hostage regardless of balance left just like a doctor can not withhold patients info or diagnostic records such as xrays or lab results if money is owed. We can not even refuse service to anyone who openly admits they won't plan on paying you. This is not going to turn out good for them and as you said, who is going to work with them now?