To make your debtor/customer liable for collection costs, then they must be made aware of this before they sign up to your services.
It is best practice to include in your Terms of Trade or credit contract your intention to refer overdue accounts to your debt collection agency, and the right to add all associated costs involved in the recovery of the overdue account, if they haven’t paid within a certain period.
If you do not have a debt collection provision within your Terms of Trade or credit contract, then you cannot legally pass on any legal and collection costs incurred during the recovery of the overdue account to the customer/debtor.
Have Disputes Tribunal Order?
If your debt is a Disputes Tribunal Order then you will need to submit a new claim with the Disputes Tribunal to have our collection fee added to your existing Tribunal Order. The reason for this is the District Court will only allow civil enforcement on the amount awarded to you on your Disputes Tribunal Order.