Terms of Engagement
|Direct Payments||Commission Charges|
|Disbursement of Payments||Unpaid Invoices|
|Commission||Credits and Compensation|
|Multiple Debtors||Credit Reporting|
|Client Obstruction||False Information|
|Default Payments||New Information|
|Overpayments||Cancellation of Debt Collection|
If this debtor approaches the client direct after the debt has been loaded with CIA Debt Recovery Limited, the client should ensure the debtor is immediately directed back to CIA Debt Recovery Limited.
If a debtor makes direct payments to either a client, a property manager, an investor, or any other party by way of voluntary payment, or because of court enforcement or, by any other means for the debt after the debt has been loaded, the client will be liable for the commission as per his/her/it’s chosen pricing option and any enforcement or legal fees that have been incurred by CIA Debt Recovery Limited.
Any costs CIA Debt Recovery Limited incurs during the process of debt collection shall be recovered from the debtor before any disbursement of payments to the client is made.
Disbursement of debtor payments to clients are made every month. Disbursements within New Zealand are made without charge, whereas disbursement to accounts outside New Zealand will incur a fee of $10 per payment.
When a client states he/she/it has or has had a debt collection clause included in the contract that was signed by the debtor, CIA Debt Recovery Limited will add commission to the top of any debt loaded at the commission rate of the clients chosen Pricing Option. This means the debtor will pay for the commission which may affect the length of time until the debt is repaid and may also alter the total commission charged over the total length of the collection process. CIA Debt Recovery Limited relies upon this information as being correct.
When a client states he/she/it does not have a debt collection clause included in the contract that was signed by the debtor, CIA Debt Recovery Limited will deduct commission from the total debt at the commission rate of the clients chosen Pricing Option. This will result in the client getting back less than the original debt that was loaded.
CIA Debt Recovery Limited does not accept liability for not collecting its commission. CIA Debt Recovery Limited will be entitled to charge and receive commission on any amount collected.
GST is added on top of our commission rate.
CIA Debt Recovery Limited takes no responsibility for the unsuccessful collection of a debt. Commission will only be charged when the debtor starts making repayments.
A statement will be emailed to the client each month that outlines any payments received, charges incurred and payments that will be disbursed to the clients nominated bank account.
CIA Debt Recovery Limited does not advance any costs or disbursements to any client in respect of any action involved with enforcement.
If there are two or more debtors on the Court order CIA Debt Recovery Limited will only make arrangements with one debtor or, if Court enforcement is required, file Court enforcement action against one debtor unless the client states that he/she/it wants multiple debtors pursued through to enforcement.
CIA Debt Recovery Limited reserves the right to decide which debtor it will pursue when there are multiple debtors.
If the client states he/she/it wants more than one debtor pursued through the District Court enforcement process, the costs of additional enforcement will be payable by the client. The reason being is that the Courts require separate enforcement applications against each debtor via solicitors, which incurs the relevant Court and solicitor's fees on each debt(or). The Courts are also not amalgamating Tribunal orders.
The client agrees that once the debt has been loaded with CIA Debt Recovery Limited that he/she/it will not get involved in or obstruct the debt collection process or in the management of the repayment of the debt. The client agrees not to deal with or contact the debtor nor do or permit any act or omission which has the effect of either directly or indirectly cancelling or altering the existing repayment plan or attempt to withdraw the debt.
Should the client obstruct and cause the cancellation or alteration of the debt collection or repayment plan, then the client agrees to pay CIA Debt Recovery Limited for the full commission due on the principal debt amount as per his/her/its chosen pricing option. The client must reimburse CIA Debt Recovery for any enforcement or legal fees that have been incurred by CIA Debt Recovery Limited.
The client further agrees that if the payment referred to above is not paid in full within 30 days of the demand that CIA Debt Recovery Limited is at liberty to take any action it sees fit to facilitate payment, including loading the commission owing to its database as a debt, with the client as the new debtor, and/or loading a claim with a tribunal or court.
CIA Debt Recovery Limited reserves the right to pass on the cost of defaults to the debtor. CIA Debt Recovery Limited may charge the debtor a default fee each time he/she/it defaults on a payment, this fee will be deducted from money paid in that pay-out period. The default fee is added to the top of the debt, so the client does not pay this fee. The addition of these costs may extend the length of time it takes for the debtor to repay the debt in full. CIA Debt Recovery Limited discloses this cost to the debtor and the charges are part of a verbal contract with the debtor. CIA Debt Recovery Limited will take all reasonable measures to ensure the number of defaults is mitigated.
If a debt is paid by cheque and that cheque is not honoured (bounces) then a $50 dishonour fee may apply.
CIA Debt Recovery Limited may incur extra work if a person who loads a debt and provides incorrect information which needs to be corrected where possible.
CIA Debt Recovery Limited reserves the right at its sole discretion to charge for its time at a reasonable rate to correct the incorrect information and/or to apologise to any person adversely affected by the incorrect information.
CIA Debt Recovery Limited takes no responsibility for acting on information that is provided to it, which later proves to be incorrect or untrue. CIA Debt Recovery Limited is not liable for any loss whatsoever which is occasioned directly or indirectly by its acting on information which is inaccurate or untrue.
Where any over payment is made and such over payment is paid out to the client by CIA Debt Recovery Limited, then any consequential refund shall be made direct to the debtor by the person/firm/client loading the debt.
CIA Debt Recovery Limited reserves the right to negotiate with debtors in relation to the amount per payment and the total amount owing for the purposes of getting a repayment plan underway.
The debtor agrees that if the client does not agree to the negotiated amount, then the plan amount may be amended to the original stated debt. It is the debtor’s responsibility to check whether the amount was accepted or declined by the client.
CIA Debt Recovery Limited has four different Pricing Options for clients, please view them under the 'Our Fees' menu above.
If a client has failed or refused to pay an invoice within 30 days, where commission is due for a payment in full from the debtor, which has been paid direct, he/she/it will be charged a fee of $300+GST which will be added on top of the commission due, and this will be loaded against the appropriate party.
Credits and Compensation
CIA Debt Recovery Limited reserves the right to apply credits to debtors’ accounts if deemed necessary. This includes but is not limited to compensating a debtor for an error made on his/her/its debt file; compensating a debtor’s account for an incorrect default charge; or as a negotiation tool to aid in the overall collection of a debt.
If the debtor is located and he/she/it refuses to pay the debt voluntarily, CIA Debt Recovery Limited reserves the right to use any means necessary to collect the debt, including District Court enforcement.
CIA Debt Recovery Limited will do all the necessary documentation and will arrange legal representation on the client’s behalf when allowed by the Court. CIA Debt Recovery Limited will decide when enforcement is the best course of action, and then pay all the relevant costs to start the first enforcement action only. If subsequent enforcement action is required, CIA Debt Recovery Limited will invoice the client for the relevant costs, which the client must pay upfront before any further enforcement action is undertaken.
There is a statutory time limitation on enforcing judgements. If your order is more than 6 years old, you can only enforce it through the court if either: a district court judge approves it and ‘grants leave’ of the court or, you, or the court, have received a payment from the debtor or someone else on their behalf in the last 12 months.
If the client does not gain an amended Court Order to include CIA Debt Recovery Limited’s collection costs, the clients proportion of the Court/Tribunal ordered debt will be reduced by the applicable commission as per the clients chosen Pricing Option. Enforcement costs, which include Court fees, solicitor's preparation of documents fees, administration fees, and Court appearances are added to any debt if that course of action is required.
If CIA Debt Recovery Limited has not received a response from the client within 21 days of either payment or information being requested via email, and/or phone, then the debt is deemed to be assigned to CIA Debt Recovery Limited. If a client does not pay an invoice, then the debt is deemed to be assigned to CIA Debt Recovery Limited. CIA Debt Recovery Limited will then charge the client the fee’s (including commission) as per the chosen Pricing Option.
All debtors are loaded into Equifax credit bureau, illion credit bureau, and in the case of tenancy debts, the illion Tenancy database, at the discretion of CIA Debt Recovery Limited. Debtors loaded into these systems may also be removed at the discretion of CIA Debt Recovery Limited.
If a client loads a debt with CIA Debt Recovery Limited and CIA Debt Recovery Limited has reason to believe that the client has provided false or misleading information to CIA Debt Recovery Limited, then the client consents to CIA Debt Recovery Limited running a credit check on the client’s credit file to help CIA Debt Recovery Limited further assess whether his/her/its information provided is in fact correct or false.
If CIA Debt Recovery Limited obtains new information during its duties, CIA Debt Recovery Limited will not disclose that information to any person or organisation.
While CIA Debt Recovery Limited will only send updates when there are significant developments with the debt collection, CIA Debt Recovery Limited does not send regular or routine updates automatically on the progress of the debt collection.
The reason behind this policy is that we have found creditors have made use of the written updates to deal directly with debtors themselves which is a breach of the Privacy Act and our Terms of Engagement. It also removes the opportunity for us to recover our management fee from recoveries from their debtors as per their instructions and will make you liable for our commission to be paid upfront. CIA Debt Recovery Limited welcomes your email or call for an update every four to six weeks if the client desires.
Cancellation of Debt Collection
CIA Debt Recovery will start the debt collection process immediately after the client has loaded or submitted the debt for collection, therefore should the client request the cancellation of the debt collection, the client agrees to pay CIA Debt Recovery Limited for the full commission due on the principal debt amount as per his/her/its chosen pricing option regardless of how much work has been done on the debt file. The client must reimburse CIA Debt Recovery for any enforcement or legal fees that have been incurred by CIA Debt Recovery Limited.