Debt Collection Services – Terms and Conditions
- In these terms and conditions:
- Bekroy Pty Ltd (ABN 77 600 240 864) trading as Capstone Collections is referred to as Capstone;
- The party named in a Collection Request Form as the business or individual and for which Capstone are acting is referred to as the Principal;
- The party from whom the Principal is seeking recovery of monies owed is referred to as the Debtor;
- A Collection Request Form is the form completed by the Principal authorising Capstone to undertake Debt Collection Services;
- Debt Collection Services to be provided by Capstone include issuance of standard letters together with regular telephone, SMS or email contact with the Debtor;
- Debt refers to the amount the Principal is seeking recovery from the Debtor as stated in the Collection Request Form; and
- Fee is the amount due and payable by the Principal to Capstone for providing the Debt Collection Services calculated by reference to the Debt as follows – under $1,000, $150 + GST; $1,000 to $10,000, 15% + GST, greater than $10,000, 10%.
- The Principal, by registering with Capstone for Capstone to carry out Debt Collection Services on behalf of the Principal and by paying the registration fee, acknowledges that it has read and agrees to be bound by these terms and conditions. Capstone will not commence providing Debt Collection Services for a Debtor until the Debtor registers with Capstone and the registration fee has been paid.
- In providing a Collection Request Form to Capstone, the Principal warrants that it is entitled to recover the Debt from the Debtor and indemnifies and holds harmless Capstone from any liabilities, loss, damage, actions, verdicts, judgments, claims, demands, charges, costs, legal fees (including fines or criminal or civil liability)that Capstone, it’s directors, employeesor agents directly or indirectly suffers arising from Capstoneacting in good faith to recover the Debt from the Debtor. This indemnity does not extend to any unlawful action by Capstone in seeking to recover the Debt.
- In providing a Collection Request Form to Capstone, the Principal agrees to an exclusive agreement with Capstone to collect the Debt. The Principal further agrees to withdraw from all negotiations with the Debtor and that Capstone will, from the time of receipt of a Collection Request Form, undertake all communication with the Debtor. The Principal agrees that it will not accept less than the total amount of the Debt except by agreement with Capstone and, if a lower recovery is accepted by the Principal, Capstone is entitled to receive payment of the full Fee applicable to the full amount of the Debt.
- If, in carrying out initial work as part of its Debt Collection Services, Capstone is unable to contact the Debtor or the Debtor refuses to engage with Capstone, Capstone will either make recommendations as to further services or activities to be undertaken including but not limited to those specified in clauses 6 and 7 below or recommend termination of the Debt Collection Services at no cost to the Principal. If, after multiple attempts at contact and/or engagement with the Debtor, no progress has been made towards recovery of the Debt, Capstone, in its absolute discretion, may terminate the Debt Collection Services by providing written notice to the Debtor.
- The Debt Collection Services provided by Capstonedo not include additional services such as field calls, process serving, legal enforcement, skip tracing, ASIC searches, title searches and bankruptcy searches. Should these services be provided they will be payable by the Principal at cost plus a 5% handling fee for third party invoices.
- Capstone will seek the prior written agreement of the Principal prior to:
- Engaging third parties or using third party services, including but not limited to legal enforcement, skip tracing, ASIC searches, title searches and bankruptcy searches; or
- Conducting or engaging third parties to conduct field calls or service of documents.
If the Principal does not provide its agreement to Capstone undertaking such additional actions as Capstone recommends then Capstone may, in its absolute discretion, immediately terminate the Debt Collection Services by providing written notice to the Principal.
- The Fee payable by the Principal to Capstone applies regardless of whether the Debtor or someone acting on behalf of the Debtor pays some or all of the Debt either directly to the Principal, to a third party acting for the Principal or to whom the Principal owes money or to Capstone.
- Capstone will include in its regular reports provided to the Client details of amounts received as payment towards the Debt together with deductions in accordance with these terms and conditions.
- The Principal agrees that Capstone is authorised to deduct from monies paid to it the proportion of the Fee applicable to the amount paid by the Debtor. The Principal further agrees that Capstone is authorised to deduct any outstanding sums owed by the Principal to Capstone from monies received by Capstone being part or all of the Debt before releasing the balance to the Principal.
- If part or all of the Debt is paid directly to the Principal or a third party acting for or to whom the Principal owes money then the Principal must by no later than the following working day advise Capstone of the amount paid and Capstone will issue an invoice to the Principal for the proportion of the Fee it is entitled to receive for the payment made by or on behalf of the Debtor.
- The Principal agrees and authorises Capstone to perform all acts reasonably necessary to collect the Debt from the Debtor including that Capstone may consult with, discuss and share all documentation, correspondence and information (including documentation, correspondence and information that may be confidential in nature) related to the Debt with legal representatives of its choice in its absolute discretion.
- If the recovery of the Debt proceeds to court, then the Principal will use all reasonable endeavours to ensure that the Fee payable to Capstone together any legal or other third-party costs are also recovered from the Debtor as part of the court order. Not including the Fee or any legal or other third-party costs does not diminish the Principal’s entitlement to pay to Capstone the Fee and any legal or other third-party costs authorised by the Principal.
- In the event that the Principal fails to pay Capstone amounts properly included in an invoice, Capstone may charge an account keeping fee calculated at the prevailing rate for each month that the amount remains outstanding. In addition, the Principal will be liable for all legal and other costs incurred by Capstone in seeking payment from the Principal.
- The Debt Collection Services are governed by the laws applicable in the State of Victoria. If any clause in these terms and conditions is deemed unenforceable then it shall not render any of the remaining terms unenforceable.