Below is an overview of the initial process, fees and form to instruct us to collect a debt, the collection authority.
We should note that if you have the correct clause(s) in your terms & conditions, collection costs will be on charged to the debtor(s). You will be required to pay the loading fee regardless of any terms, and this is non refundable. Commission is only payable when a payment is made by the debtor(s). Collection costs can not be added to a court order.
We have no hidden membership fees and you can use our services as little or as many times as you need. Some collection agencies charge lower up-front fees, but have other compulsory fees that you discover later. You will never receive an invoice from us unless you have agreed to incur that cost.
We have 4 options for loading a debt which are outlined below along with the associated fees.
We also charge commission on the amounts recovered. Our commission rates are as follows:
$1.00 – $3,000.00 25%
$3,000.01 – $15,000.00 20%
$15,000.01 – $50,000.00 15%
$50,000.01 – $80,000.00 10%
$80,00.01 – $100,000.00 7%
Over $100,000.01 Please ask us for a quote.
The first step in the recovery process is to make contact with the debtor and/or guarantor to advise that a recovery agency is now attending to the matter.
This is done by one of the following:
Demand Letter – $50.00 +GST per debtor – this option has a low success rate
With the demand letter option, a formal demand is sent to the debtor via post and email and we follow up with a phone call. This option has a lower success rate with stubborn debtors.
The debtor is given 7 days to pay in full. If the debtor is unable to pay in full, we will seek their repayment proposal and report back to you with our findings and recommendation. If their proposal is not accepted, it is recommended litigation is commenced.
Agent Visit – $150.00 +GST per debtor
With an agent visit option, a formal demand is personally served upon the debtor by one of our specially trained agents. Visiting the debtor in person is much more effective than sending a letter and it often leads to faster results and less disputes. This will show the debtor that you are serious about recovering your debt. This also allows us to assess their circumstances and determine risk and debtor profile.
We will seek confirmation from the debtor that they can pay in full within 7 days. If the debtor is unable to pay in full, we will seek their repayment proposal and report back to you with our findings and recommendation. If their proposal is not accepted, it is recommended litigation is commenced.
Statutory Demand – $385.00 +GST per debtor. Only applies to a debt owed by a company
A statutory demand is the first step of the liquidation process (companies only) and can only be carried out when there is a debt exceeding $1,000.00 and there is no dispute, counter claim or set-off. This provides the debtor with a period of 10 working days to dispute the debt and provide evidence supporting this, or 15 working days to pay the debt. If they fail to do either, they are deemed unable to pay their debts as they fall due (insolvent) and we can then apply to the High Court to appoint a liquidator.
If you have a guarantor, we can also serve a guarantor demand notice upon the guarantor at the same time (see below).
Guarantor Demand Notice – $240.00 +GST per guarantor
This is normally served in conjunction with a statutory demand and is a formal notice to the guarantor(s) that if they do not pay the debt in full within 7 days, the debt will be loaded on their credit rating and legal action will follow. If full payment is not forthcoming, it is recommended legal proceedings are commenced.
Once we have received your instruction, we will commence collection action within 1 – 3 working days.
We aim to visit your debtor within one week of receiving the instruction and we will then report back to you with our findings and recommendation.
If any proposal put forward by a debtor / guarantor is not accepted then we can issue legal proceedings via our solicitor. Further costs will apply and a fixed fee quotation will be supplied. If you are not willing to issue legal proceedings then we strongly suggest accepting a repayment proposal if one is presented, otherwise we may not be able to recover the debt.
If you have a court order, once we have made a formal demand for payment, we can then commence enforcement action in the District or High Court. The enforcement action varies depending on the type of debt and debtor as each case is unique. These costs are claimed from the debtor regardless of any contract, and we will seek confirmation from you before proceeding as there are numerous options and the fees vary. It is suggested an agent visit is carried out before we look to enforce a judgment so we can assess their circumstances and determine risk and debtor profile in order to recommend the right enforcement action.