DebtAction service

DEFINITIONS

“Commissionable Sum” means any amount received by any of the methods specified in paragraphs (a), (b) or (c) of the definition of “settlement” below by way of reduction, payment in full, or settlement of a debt.

“Outstanding Balance” in relation to any debt means the total amount of the debt (including interest accrued) at the date at which the debt is passed to DEBTFORCE by the Client pursuant to this agreement, or such lesser sum as remains outstanding where the debt has been reduced by any of the methods specified in paragraphs (a), (b) or (c) in the definition of “settlement” below, or such greater sum following addition of interest or costs.

“Settlement” means the aggregate of:

• (a) Any payment made by the debtor or any other party by any means in settlement or reduction of a debt
• (b) Where the Client agrees to credit the debtor for any amount in settlement or reduction of a debt, the total amount of that credit.
• (c) Where the Client and the debtor or any other party agree to a settlement or reduction by way of a contra agreement, the amount of that contra.

“Fees, Charges & Costs” of DEBTFORCE include:

• (a) All fees and disbursements for information and documents obtained by DEBTFORCE including but not limited to credit information and all company searches, documents and title searches, traces, agent’s fees, lawyers’ fees and fees for such other investigation as may be necessary to establish the particulars or whereabouts of any debtor;
• (b) Administrative disbursements including but not limited to toll calls, mileage, courier services;
• (c) Legal and other document preparation fees and all other DEBTFORCE fees and disbursements including filing fees relating to the issue, prosecution and execution of proceedings in the District Court, High Court or any other appropriate Court or Tribunal.

APPOINTMENT OF DEBTFORCE

• 1.1 The Client appoints DEBTFORCE to act as its duly authorised agent in accordance with the terms and conditions set out below and DEBTFORCE accepts the appointment.

DEBTFORCE’S PERFORMANCE

• 2.1 DEBTFORCE will act upon instructions from the Client to provide debt recovery and associated services and to provide credit information (subject always to the provisions of the Privacy Act 1993).
• 2.2 DEBTFORCE may instruct other third parties as it deems necessary or as appropriate (including solicitors) with the clients approval to assist in the recovery and securing of debts and the provision of credit information.
• 2.3 DEBTFORCE shall not agree to settle any debt without the Client’s authority, provided however that where circumstances in DEBTFORCE’s view necessitate immediate acceptance of an offer to settle a debt, DEBTFORCE may at its discretion accept such settlement which it considers to be reasonable in all the circumstances.
• 2.4 All monies collected on behalf of the Client shall be held in DEBTFORCE’s Trust Account, and DEBTFORCE will account to the Client on a twice monthly basis including any legally recoverable costs awarded and paid to DEBTFORCE. DEBTFORCE may deduct from such funds any monies owed by the Client to DEBTFORCE prior to forwarding the funds to the Client.
• 2.5 If the Client withdraws any file or instruction from DEBTFORCE, or cancels this agreement or otherwise requests any file or all files to be returned to it;
• (a) DEBTFORCE shall be entitled to hold all files of the Client until receiving payment in full of all amounts owing by the Client to DEBTFORCE
• 2.6 DEBTFORCE reserves the right to cease action on any file at any time.

CLIENT’S PERFORMANCE AND FEES/COMMISSION

• 3.2 The Client will give DEBTFORCE written instructions in respect of any debt to be collected - written instructions, may include electronic data transfer from the Client to DEBTFORCE.
• 3.3 The Client will pay DEBTFORCE a commission of 18% commission on any recovered or settled amount of the principal debt due, together with charges, fees and costs of DEBTFORCE along with necessary disbursements.
• 3.4 The Client agrees to pay DebtForce a Closed File Fee of $45.00 per instruction but should commission exceed that amount the Closed File Fee is not charged.
• 3.5 The Client will pay all DEBTFORCE invoices within 7 days of the date of invoice – DEBTFORCE issues out invoices and payments twice monthly.
• 3.6 Interest at the rate of 2% per month compounding monthly shall be payable by the Client on any amount overdue by the Client to DEBTFORCE.
• 3.7 The Client shall be liable to DEBTFORCE for all costs incurred by DEBTFORCE in collecting or attempting to collect overdue amounts from the Client’s debtor, including but not limited to debt collection fees and legal costs on a solicitor-client basis.

DEBT INFORMATION

• 4.1 The Client shall provide DEBTFORCE with all relevant information, materials and documentation concerning any debt and parties responsible for that debt.
• 4.2 The Client shall keep up to date all information relating to debts being recovered or secured or credit information being obtained, and shall inform DEBTFORCE forthwith of any payments, credits, changes to information, materials or documentation coming to the Client’s attention at any time.
• 4.3 Where an interest factor is claimed with the debt instruction it is the client’s responsibility to provide DEBTFORCE with the complete interest calculation amount in that instruction and DEBTFORCE shall not be liable for any variation in the calculation.

INDEMNITY

• 5.1 The Client agrees to indemnify DEBTFORCE against all actions, liabilities, charges, demands, expenses, losses, damage, claims or costs incurred by DEBTFORCE arising out of any act or omission of DEBTFORCE or any such claim arising out of the contents of any information supplied by or to the Client.
• 5.2 The Client agrees to indemnify DEBTFORCE against, and is liable to DEBTFORCE for, any liability, loss, damage, expense or costs arising from the breach or non-observance by the Client of any term or condition of this agreement.

CREDIT INFORMATION

• 6.1 The Client will use any information supplied to it by DEBTFORCE as an aid only in determining whether to extend credit to any person, corporation or organisation and generally as an aid to the Client’s business and for no other purpose. Subject to the provisions of the Privacy Act 1993 the Client will hold such information in strict confidence and shall not disclose it to the subject persons, corporations or organisations or to any other person, corporation or organisation. DEBTFORCE does not in any case warrant the correctness of any information supplied by it to the Client and shall not be liable to the Client in any way arising from the supply of any information to the Client.

PRIVACY ACT 1993

• 7.1 DEBTFORCE is agent of the Client for the purposes of an information privacy request made under clause (1)(b) of Principle 6 of the Privacy Act 1993 pursuant to Section 45 of that Act. The Client for itself and as agent for the individual concerned further authorises DEBTFORCE to disclose to any third party any information gathered concerning such individual pursuant to Principle 11 of the Privacy Act 1993.
• 7.2 The fact of supply to DEBTFORCE of any information, materials or documentation shall be deemed by DEBTFORCE to have been properly obtained by the Client in compliance with the Privacy Act 1993 and any relevant code of practice issued under the Privacy Act 1993. The Client hereby irrevocably authorises any person, corporation or organisation to provide DEBTFORCE with such information as DEBTFORCE may require in response to the Client’s credit related.
• 7.3 If any payment in settlement or reduction of a debt is made direct to the Client by a debtor or any other party, the Client shall immediately notify DEBTFORCE and as required under The Privacy Act 1993.
• 7.4 DEBTFORCE shall be entitled to contact any debtor direct at any time (even after the Client has withdrawn instructions from DEBTFORCE or this agreement has been terminated) where DEBTFORCE believes that such contact is legally or reasonably required in the circumstances.

The Client further authorises DEBTFORCE to contact it in relation to any other matter that might arise in the future. AUTHORITY BY CLIENT FOR CREDIT CHECKS

• 8.1 The Client, whether individual or corporate, hereby authorises DEBTFORCE and its subsidiaries and agents to undertake a credit check or checks at any time by any means whatsoever on the Client.

TERMINATION

• 9.1 This agreement may be terminated by 30 days prior written notice by either party to the other party.

GST

• 10.1 All invoiced charges attract Goods and Services Tax.

This On-Line agreement, together with Terms and Conditions, is transferable in its entirety to any successors and assigns of DebtForce Ltd