Terms of Trade

Terms That We Use

Terms of Trade

Abbreviation Meaning
SCS: Safeguard Collection Services ABN: 24 612 748 759
Client: Party (including owner and employees) requesting debt collection and/or litigation from SCS.
Debtor: Party of which a debt is to be recovered.
Debt: Amount of money due and payable to the Client by the Debtor.
Instruction Form: Form obtained from SCS web-site, fax or email.All the debt details are listed on this form and the instruction form is a formal request for SCS to act.
Debt Collection/Recovery Costs: Any costs associated or charged by SCS in addition to the debt payable by the debtor to the client in the event of default in payment terms agreed to by the debtor.
Litigation: Legal Proceedings.
Statement / Invoice: Monthly debtor payments and SCS charges. Each statement/invoice is issued during the first week of each month for any account movement for the month previous.

1. ENGAGEMENT OF SCS

1.1 The Client shall issue instructions requesting SCS to commence their services of debt recovery and any subsequent action by submitting an Instruction Form. The Instruction Form is a formal request to act and by submitting this form, the Client agrees to SCS fees and terms of trade.
1.2 The Client hereby authorizes and accepts SCS to act on their behalf with any action involving debt recovery and any litigation that may be required to recover the debt.
1.3 SCS will maintain any file records for a period of sixty (60) days following a debt recovery. All material may be destroyed after such time.
1.4 The Client agrees that no bona fide dispute exists in regards to the debt and the Client hereby indemnifies and agrees to keep indemnified SCS against any and all claims, liability, actions (legal or otherwise), demands and costs which may result from the Client’s actions now or at any time in the future.
1.5 The Client declares that the amount submitted to SCS for recovery does not include any amount for debt collections costs. In the event that the Client seeks debt recovery costs, the client must provide evidence to SCS that these costs are indeed recoverable by way of prior notification given and accepted by the debtor at the time of sale or supply. The Client hereby indemnifies and agrees to keep indemnified SCS against any and all claims, liability, actions (legal or otherwise), demands and costs which may result from the Client’s actions in regards to this clause now or at any time in the future.
1.6 A closure fee of 20% of the debt will be payable by the client in the event that the Client makes a request to close the debt prior to any payments being made. NB: This fee is charged on a “case by case” basis. This fee is only to prevent the unacceptable trade of debts outside, and after the appointment of Safeguard Collection Services.

2. PAYMENTS, COMMISSIONS & FEES

2.1 The Client agrees to immediately notify SCS if a debt is paid in part or in whole directly to the Client by the debtor.
2.2 If a Debtor has advised of a payment made directly to the Client and the Client has failed to respond to SCS requests for advice of payment after a two (2) day period, SCS will charge out the commission for such payment and the Client is obligated to pay SCS for such commission.
2.3 The Client agrees that in the event that the Client wishes to withdraw a debt for recovery or accepts goods returned in lieu of the debt, the Client remains obligated to pay SCS any commission as if the debt had been paid in full.
2.4 Commission is charged when payment, or part payment, of a debt is received by SCS or directly to the Client OR if the Client agrees to credit, contra or accept return of goods or products, etc.
2.5 Commission is calculated on the actual amount of payment received.
2.6 Commission charged by SCS is payable by the Client regardless if costs have been added to the debt for recovery.
2.7 Payment terms of SCS invoice or statement is 7 days.
2.8 If a Client defaults in payment of SCS invoice or statement, the Client agrees to indemnify SCS from any costs or charges incurred by SCS for the collection or attempted collection of such default amount. Any such costs or charges shall be payable by the Client as a liquidated debt.
2.9 In the event that the client is a Company, the Director/s hereby agree and acknowledge that should a default on payment of any SCS invoices occur that the Director/s of the client Company can and will be held personally liable for payment on the overdue invoice/s as if they had obtained the services from SCS directly.

3. DEBTOR PAYMENTS MADE TO SCS

3.1 The Client hereby authorizes SCS to receipt all monies recovered into SCS trust account.
3.2 The Client hereby authorizes SCS to deduct any applicable commission, fees or charges payable at the end of each monthly invoicing cycle.
3.3 SCS shall remit all cleared funds to the Client on a monthly basis.

4. LEGAL SERVICES

4.1 In the event that SCS feels legal action is required for further recovery of the debt, a written report will be made to the Client, listing all fees required for that particular legal procedure.
4.2 In the event that the Client agrees with legal action, the Client must provide the necessary payment for fees reported for that particular legal procedure prior to the action commencing.
4.3 The recommendation of legal action taken against the debtor is based on information provided to SCS by the Client. The Client hereby indemnifies and agrees to keep indemnified SCS against any and all claims, liability, actions (legal or otherwise), demands and costs which may result from the Client’s actions in regards to this clause now or at any time in the future.
4.4 In the event that the Client does NOT wish to proceed with legal action after a report from SCS has issued, further enforcement action (without legals) may continue by SCS until such time as the procedures are uneconomical. In the event that the Client wishes for the debt to be closed rather than proceed with legal action or any further recovery action, a closure fee of 20% of the debt will be payable by the Client. NB: This fee is charged on a “case by case” basis. This fee is only to prevent the unacceptable trade of debts outside, and after the appointment of Safeguard Collection Services.

5. IN GENERAL

5.1 The Client warrants that all details supplied to SCS are true and correct and include all information in regards to the outstanding debt.
5.2 The Client acknowledges having read these terms and conditions PRIOR to lodgment of debt/s for collection. Lodgment of debt/s with SCS shall be deemed as acceptance by the Client to be bound by these terms and conditions and to SCS rates, fees and charges.
5.3 SCS may vary these Terms and Conditions at any time by notice in writing to the Client.
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