Terms & Conditions
1.0 Definitions
1.1 "Company" refers to Commercial Collections Ltd.
1.2 "Client" refers to the individual or entity engaging the Company for debt collection services.
1.3 "Debtor" refers to the individual or entity from whom the Client seeks to recover debt.
1.4 "Debt" refers to the unpaid financial obligations owed to the Client by the Debtor.
1.5 "Services" means the services described in clause 2, together with any Additional Services the Company agrees to provide under clause 7.3.
1.6 "Proceeds" means any money, award, judgment sum, adjudication determination sum, settlement payment, costs award, or other financial benefit recovered from or paid by the Debtor (or any third party) in connection with the Debt.
1.7 "Adjudication" means adjudication of a dispute under the Construction Contracts Act 2002.
2.0 Services
2.1 The Company will provide debt collection services, including recovery strategy development and advice, document preparation, contacting Debtors, negotiating payment terms, issuing statutory and contractual notices, and, if applicable, facilitating legal action.
2.2 The Company will make reasonable efforts to collect the Debt; however, results are not guaranteed.
3.0 Commencement of Engagement
3.1 The Client's engagement of the Company commences at the point the Client agrees to these Terms (whether by signing, by electronic acceptance, by instructing the Company to act, or by conduct), and continues unless terminated in accordance with clause 11.
3.2 The Company may, in the course of the engagement, provide certain services, assessments, reviews, or communications on a no-charge or preliminary basis. The provision of any such non-chargeable service does not mean that the engagement has not commenced, and does not defer, suspend, or negate the commencement of the engagement, the Client's obligations under these Terms, or the Company's entitlement to commission and fees on any resulting recovery.
4.0 Client Obligations
4.1 Exclusive Engagement: The Client warrants that no other entity has been or will be instructed to act on the Debt once the Company has been engaged to recover the Debt.
4.2 Debtor Communication: The Client agrees not to contact the Debtor, or enter into any compromise, negotiation, or settlement with the Debtor, without the Company's prior agreement. If the Client breaches this clause and the Debt (or any part of it) is settled, compromised, or paid as a result, the Client remains liable to pay the Company the commission it would have earned under clause 7.1 on that amount, as a genuine estimate of the Company's lost earnings.
4.3 Direct Payments: The Client shall report to the Company all direct payments made by the Debtor to the Client, within 1 business day of receipt.
4.4 Privacy Compliance: The Client confirms that any and all information concerning the Debtor has been collected, obtained, used, and disclosed in accordance with the Privacy Act 2020 and the Credit Reporting Privacy Code 2020.
4.5 Debt Authenticity: The Client warrants the validity, amount, and authenticity of all claims and accounts placed with the Company for collection. Upon request by the Company, the Client agrees to provide documentation to prove the amount and authenticity of the claim.
4.6 Credit Reporting of Debtors: The Client grants the Company the authority, at its sole discretion, to forward all undisputed Debts to a nationwide credit reporting database after 14 days of lodgement.
4.7 Debtor Information: The Client agrees to provide the Company with sufficient and current contact details for the Debtor, and any other information reasonably needed, to enable the Company to communicate with the Debtor and pursue the recovery.
5.0 Authority to Act
5.1 The Client authorises the Company to contact the Debtor and any relevant third party, and to send, issue, and receive communications, notices, demands, and documents relating to the recovery of the Debt, on the Client's behalf.
5.2 This authority includes correspondence by post, email, telephone, and electronic message, and the issuing of statutory and contractual notices in the Client's name where the Company considers it appropriate to the recovery.
5.3 The Company will exercise this authority in a manner consistent with applicable law, including the Fair Trading Act 1986 and the Privacy Act 2020.
6.0 Adjudication
6.1 The Client authorises the Company and any third party the Company engages to prepare and serve payment claims under the Construction Contracts Act 2002 and notices of adjudication on the Client's behalf where the Company considers it in the interests of the recovery.
6.2 If the Client withdraws or fails to proceed with the adjudication after instructing the Company to proceed, the Client shall pay the Company a withdrawal charge of $2,000 plus GST for the time and work expended to that point.
7.0 Fees and Commission
7.1 The Company charges a commission of 30% plus GST of the total amount recovered from the Debtor.
7.2 Additional charges may apply for legal fees, court costs, adjudication fees, service of documents, or other third-party costs if legal proceedings or Adjudication are pursued (subject to Client approval).
7.3 Additional (Time-and-Materials) Services: Work outside standard debt recovery, agreed in advance, is charged at $200 per hour plus GST or at an agreed fixed fee.
7.4 Commission and fees are subject to New Zealand GST (Goods and Services Tax).
8.0 Payment of Collected Funds
8.1 Collected amounts, minus the commission and any applicable fees, will be transferred to the Client by the 20th of the month following receipt.
8.2 Payments will be made to the Client's nominated bank account.
8.3 In the event that the Debtor makes payment directly to the Client, the Client shall immediately advise the Company and transfer the commission to the Company's nominated bank account within 2 working days (the Due Date).
8.4 Deduction from Proceeds: The Company may deduct its commission, fees, and any amounts owing to it from any Proceeds (including any judgment, determination, settlement, or costs award) before paying the balance to the Client, whether the Proceeds are received by the Company or the Client.
9.0 Liability and Disclaimer
9.1 The Company shall not be liable for any failure to collect the Debt or for any consequential, indirect, or other loss incurred by the Client.
9.2 The Client acknowledges that if a liquidator, receiver, insolvency representative, or any other party reclaims money collected by the Company, the Company was acting solely as a service provider to the Client and was executing the Client's instructions. Accordingly, the Company remains entitled to payment of its commission, fees, and disbursements, and these costs shall not be refunded to the Client.
9.3 The Company's liability in any circumstance will be limited to the amount of commission collected for that particular debt collection effort.
9.4 Advisory / review services. Any review of a Client's terms of trade, or similar service, is general commercial commentary on a no liability basis.
9.5 Indemnity: The Client agrees to indemnify and hold the Company, its employees, agents, and subcontractors harmless from any claims, damages, liabilities, costs, or expenses (including legal fees) arising from:
(a) Any breach by the Client of its obligations under this agreement.
(b) Any claim or action brought by the Debtor or any third party as a result of the information provided by the Client or actions taken on the Client's instructions.
(c) Any breach by the Client of applicable privacy laws, including the Privacy Act 2020 and the Credit Reporting Privacy Code 2020.
9.6 This indemnity will survive the termination or expiration of this agreement.
10.0 Confidentiality
10.1 The Company will keep all information related to the Debt confidential, disclosing information only when required by law or to further the debt collection process.
11.0 Termination of Services
11.1 Either party may terminate this agreement with 60 days' written notice.
11.2 Upon termination, any commission owed to the Company for amounts collected prior to termination remains payable by the Client, as does any withdrawal charge or Additional Services fee accrued before termination.
12.0 Governing Law
12.1 These Terms of Trade are governed by New Zealand law, and any disputes arising from them shall be subject to the jurisdiction of New Zealand courts.
13.0 Interest and Charges on Overdue Amounts
13.1 Interest Charges: If the Client fails to pay any amounts due to the Company under this agreement by the due date, the Company reserves the right to charge interest on the overdue amount at the rate of 2.5% per month, calculated daily from the Due Date until full payment is received.
13.2 Collection Costs for Overdue Amounts: The Client agrees to pay all costs and expenses (including legal fees on a solicitor/client basis) incurred by the Company in recovering any overdue amounts owed under this agreement.
13.3 Credit reporting of the Client's default: If the Client fails to pay any amount owing to the Company by the Due Date, the Client authorises the Company to disclose the Client's details and the default to any credit reporting agency or commercial credit bureau, in accordance with the Privacy Act 2020 and the Credit Reporting Privacy Code 2020.
14.0 Acceptance & Acknowledgement of Terms
14.1 By engaging Commercial Collections Ltd the Client acknowledges and agrees to these Terms of Trade.
15.0 Right to Vary
15.1 We reserve the right to amend, update, or replace these Terms & Conditions from time to time to reflect changes in our business, legal or regulatory requirements, or fee structures.
15.2 The most current version of our Terms of Trade will be published on our website at https://www.commcoll.co.nz/terms-and-conditions.
15.3 Any new instruction for use of our Services submitted by you to us will be subject to the Terms & Conditions published there at the date/time that instruction is received by us.
15.4 Your continued instruction to us to provide our Services, or your failure to withdraw an instruction following notification of varied terms, constitutes your acceptance of the varied terms.
16.0 Severability
16.1 If any provision of these Terms is or becomes invalid, illegal, or unenforceable, that provision is to be read down to the minimum extent necessary to make it valid and enforceable; and if it cannot be, it is severed from these Terms. The invalidity or unenforceability of any provision does not affect the validity or enforceability of the remaining provisions, which continue in full force and effect.