DEBT COLLECTION AGREEMENT Clause Samples

DEBT COLLECTION AGREEMENT. Pursuant to Section 433 of the Property and Motor Dealers ▇▇▇ ▇▇▇▇ (“PAMD”) The Client acknowledges the following terms and conditions apply if the Client requires PaySmart to attend to the collection of overdue payments under clause 5.3 of the PaySmart Agreement. The Client authorises PaySmart to engage the services of Australian Recoveries & Mercantile Agents Pty Ltd (ARMA). The appointment of ARMA is a continuing appointment, however may be revoked at any time by giving 7 days’ notice in writing by either party. PaySmart may, under certain provisions give your information to the ARMA to whom PaySmart has engaged with. This information will enable ARMA to contact you, the client, with any questions about your debtors and set up your account.  You will be given a 2 week opportunity to reply to us to remove a specific customer that is going to be sent to the debt collector - No email to remove the customer means they will be sent to ARMA the debt collector.  Debt collection cannot be enforced against a minor (under 18 years) unless supporting evidence is received to show that the contract or terms and conditions have been signed by a guarantor.  The debt to be pursued must exceed $100 (inclusive of GST).  ARMA will charge a 22% (exclusive of GST) commission rate, which will be passed on to the customer, on any monies collected.  An administration fee of $50.00 (inclusive of GST) will be added onto the amount owed by the customer.  Once details of a debtor have been sent to ARMA, the Client agrees NOT to make any financial arrangement with the debtor to resolve the debt, without the approval in writing of PaySmart.  Unless otherwise agreed, a debtor cannot be withdrawn once the debtor’s details have been submitted to ARMA. Such withdrawals will be at the discretion of PaySmart and a cancellation fee, equivalent to the debt collection percentage maybe charged to the Client.  Any queries or communication from the debtor must be referred directly to ARMA.  Once the debtor has been sent to ARMA if the debt remains unpaid or a payment agreement has been breached by the debtor and all avenues to collect the debt have been exhausted by ARMA then under some circumstances a debtor may be listed with a credit reporting agency.  A debtor can only be forwarded to ARMA if they have signed a DDR Service Agreement supplied or otherwise approved by PaySmart.  PaySmart shall not be required to arrange for legal proceedings to be initiated against the debtor. Shou...