Terms and Conditions

1. Definitions
 

1.1 In these Terms and Conditions, the following definitions apply unless the context requires otherwise:
1.2 "Agreement"  means the service agreement submitted by you to NZ Debt Recoveries Limited (NZDRL) either online via our website, by way of email to admin@NZdebtrec.com, in person, or by mail, and accepted by NZDRL together with these Terms.
1.3 "Business Day" means a day that is not a Saturday, Sunday, or a public holiday in New Zealand.
1.4 "Commission" means the commission rates that NZDRL is entitled to charge you (plus GST) for the services in respect of the debt. The commission charged is calculated on the total of each debt in accordance with the rate table provided on our website or proposal document.
1.5 "Confidential Information" means any information, whether or not in material form, that directly or indirectly relates to NZDRL, the services, and/or products of either party and its clients, customers, and suppliers, including information relating to any patents (actual or pending), trade secrets, formulas, designs, accounts, marketing plans, sales plans, prospects, research, management information systems, computer systems, processes, and any database, data surveys, clients, customers, suppliers, client lists, distribution lists, customer lists, specifications, drawings, records, reports, software, or other documents, whether in writing or otherwise concerning each of the parties or any of its clients, customers, or suppliers. It also includes any other information or know-how, whether or not in a material form, that relates to the business of either party, which the other party becomes aware of either before or during the period of this Agreement, or generates in the course of, or in connection with, the carrying out of either party's obligations under this Agreement. Additionally, it includes any other information relating to either party which information is not in the public domain.
1.6 "Debt(s)" means the agreed value of the debt in New Zealand dollars (NZD) (inclusive of GST) owed to you by the debtor as lodged by you with NZDRL.
1.7 "Debtor" means the person, business, or entity which owes the debt to you as lodged by you with NZDRL.
1.8 "Disbursements" means any third-party costs or expenses incurred by NZDRL in connection with the provision of the services to you.
1.9 "Guarantor(s)" means a person or persons who guarantee payment of all moneys payable by you to NZDRL under this Agreement and the performance of your obligations under this Agreement.
1.10 "NZDRL Proposal" means a document provided to you by NZDRL for review and consideration prior to the engagement of NZDRL.
1.11 "Legal Fees" means legal fees or expenses and third-party costs that may become due to the solicitors that you instruct NZDRL to engage and act on your behalf (should you provide NZDRL with authorisation to proceed with legal proceedings to recover the debt).
1.12 "Reporting Fees" means fees incurred by NZDRL as a result of running credit reports on debtors.
1.13 "Service Agreement" means a document governed by these Terms and either:
1.14 available on our website via the "Collect Outstanding Debts Now" link; or
1.15 contained in a document titled “NZDRL Proposal” that is provided to you by NZDRL prior to engagement.
1.16 "Services" means debt collection services to recover debts on your behalf from your debtors, but excludes any legal services.
1.17 "Tax Invoice" means an invoice and an accompanying statement issued by NZDRL to you in respect of the services which lists out the commission charged on the sum of debt (or part thereof) recovered for the preceding month, any payable disbursements, reporting fees, and annual subscription fees.
1.18 "Terms" means these Terms and Conditions of trade.
 

2. Your Acceptance
 

2.1 You accept these Terms and Conditions (whether in your personal capacity or as an authorised representative on behalf of another person, business, or entity) when you submit an executed Service Agreement online through our website or by way of email to admin@NZdebtrec.com, in person or by mail
 

3. Appointment as Your Agent
 

3.1 By submitting one or more Service Agreements to us and accepting these Terms and Conditions, you:
3.1.1 appoint and authorise NZDRL as your agent, and NZDRL agrees to provide the services in accordance with these Terms and Conditions;
3.1.2 consent to a credit check with a credit reporting body prior to the provision of NZDRL services; and
3.1.3 accept liability to pay any Tax Invoices that we will render for work done and all agency disbursements incurred in accordance with your instructions and as per the provisions of these Terms and Conditions.
3.2 All Agreements are valid for a period of twelve (12) months from the date the Service Agreement is submitted to NZDRL. After this period, the Service agreement will automatically renew; however, NZDRL reserves the right to review and adjust the Terms of the Agreement, which is capable of acceptance or rejection by you, and if rejected, this Agreement is at an end.
3.3 This Agreement may be terminated by either party in writing only.
3.4 As your agent, for the purpose of conducting the services, you expressly authorize NZDRL to:
a conduct necessary searches or inquiries;
b make necessary phone calls; and
c draft and send necessary correspondence, including by email and by post.
3.5 No legal action will be taken by NZDRL unless and until we are instructed to do so by you.
3.6 NZDRL may close a file or withdraw our involvement where we request your instructions and no response is received within fourteen (14) days of the request.
3.7 As part of our services, we will conduct telephone demands, instruct field agents, provide written demands upon your debtors, locate debtors, generally request you cease contact with the debtors (unless directed by us), and any other business activities as needed from time to time.
3.8 By appointing us as your agent, you also authorise us to accept payments from your debtors on your behalf and bank these payments into our trust account.
3.9 Disbursements and Legal Fees will be charged as per the current scales as provided upon request and all recoverable costs will be refunded to you by NZDRL if and when they are recovered from the debtor.
3.10 As your agent, you expressly authorize NZDRL to engage and instruct solicitors at our discretion for legal and enforcement action. A copy of the solicitor’s costs disclosure will be provided to you for approval prior to us formally instructing them. You will be liable for any and all fees charged by the solicitor and/or their law firm.
3.11 Commission rates are locked in for a period of twelve (12) months for the subsequent period from the subscription date and apply to new debts only. Any active debts you may have with NZDRL at the time of submitting a new service agreement will be subject to the existing commission rate for that debt.
3.12 Rates on any and all proposals provided by NZDRL to you are valid for strictly thirty (30) days from the date of the proposal.
 

4. Payment Terms
 

4.1 Any Tax Invoice rendered is payable strictly Fourteen (14) days from the date printed on the Tax Invoice.
4.2 If you have a trust balance exceeding $2,000.00, NZDRL will remit the balance of trust monies to you after deducting all charges for commission and disbursements on a fortnightly basis.
4.3 If you have a trust balance less than $2,000.00, NZDRL will remit the balance of trust monies to you after deducting all charges for commission and disbursements on a monthly basis.
4.4 Goods and Services Tax (GST) is payable by you on our fees and charges.
4.5 If you are instructing us in your capacity as a director or shareholder of a company, or on behalf of another entity, then your instructions are accepted on the basis that you remain at all times personally liable (alongside the company and/or other entity) to pay our fees and disbursements.
4.6 Monthly remittance on the 20th day of each month, or earlier at the client's request for an administration fee of $15 + GST.
4.7 Upfront fixed fee of $250 + GST for debts under $1,000.
4.8 Overseas clients are required to pay $250 or 15% of the debt amount (whichever is greater) into our trust account on engagement, which will be held until the completion of the account. If the client disengages or fails to provide instructions in line with their other obligations in the terms and conditions, they agree to forfeit these costs.
 

5. Security Interest
 

5.1 You acknowledge and agree that to secure payment of any and all amounts outstanding to us from time to time, we have a lien over all papers, files, documents, records and deeds that belong to you and received by us while providing the services, including any money that we are holding on your behalf and files and documents relating to other matters which have been completed and paid for by you (whether stored in physical or in electronic form).
 

6. Warranties
 

6.1 You warrant and covenant to NZDRL that:
6.1.1 if you are submitting a Service Agreement on behalf of another person, business, or entity, you are authorised to do so;
6.1.2 NZDRL is the exclusive provider of the services with respect to the debt for 60 days from the referral of the debt or acknowledgement of the debt from the debtor. Acknowledgement from the debtor is classified as any payment, email, phone call, letter, or text message originating from the debtor.;
6.1.3 all details and information which you provide to us are true and correct and include all information relevant to the debt;
6.1.4 you will not interfere with or impede the provision of the services by NZDRL; and
6.1.5 the rate at clause 10.1(a) is a fair reflection of the administrative costs associated with recovery of any outstanding accounts.
 

7. Obligations
 

7.1 In addition to your other obligations set out in the Agreement, you will:
7.1.1 relinquish all communication with the debtor for the duration that the file is managed by us unless otherwise directed by us;
7.1.2 direct all debtor communication to us unless otherwise directed by us;
7.1.3 notify us immediately if any debtor or its representative makes contact with you;
7.1.4 notify us immediately if a debt is paid to you, whether in part or in whole and whether paid directly by the debtor or on behalf of the debtor;
7.1.5 not negotiate, settle, or otherwise compromise any debt without first notifying us in writing;
7.1.6 notify us immediately of any change to the balance outstanding on any debt; and
7.1.7 notify us immediately if there is any change to your contact details.
7.1.8 Recognise NZDRL as the exclusive provider of the services with respect to the debt for 60 days from the date of referral of the debt or acknowledgement of the debt from the debtor. Acknowledgement from the debtor is classified as any payment, email, phone call, letter, or text message originating from the debtor.
 

8. Fair Opportunity to Recover & Cost Recovery Rights
 

8.1 You acknowledge and agree that NZ Debt Recoveries Limited (NZDRL) is entitled to rely on the accuracy and completeness of the information and documentation you provide in relation to any debt referred for recovery.
8.2 You warrant that:
(a) the debt is legally recoverable under applicable New Zealand law;
(b) you have fulfilled all contractual and statutory obligations owed to the debtor;
(c) the debtor has not raised a valid dispute or counterclaim that would materially affect the enforceability of the debt;
(d) the debt is not statute-barred or otherwise extinguished by operation of law;
(e) the goods or services giving rise to the debt were delivered or performed in accordance with the agreed terms;
(f) you have not engaged in misleading or deceptive conduct in relation to the debt or its recovery;
(g) the debt has not been previously settled, waived, or assigned to another party.
8.3 In the event that NZDRL, acting reasonably, determines that a referred debt is not legally recoverable due to a breach of the warranties in clause 8.2 or due to material misrepresentation, omission, or failure to disclose relevant facts, NZDRL reserves the right to:
(a) cease recovery efforts on the file;
(b) charge you a reasonable administrative fee calculated at an hourly rate of $50 + GST, for time spent on the matter up to the point of cessation;
(c) recover stationery and communication costs incurred, including but not limited to letters, envelopes, postage, and third-party search fees.
8.4 Any such fees will be invoiced to you and payable in accordance with clause 4 (Payment Terms). NZDRL may deduct such fees from any trust funds held on your behalf.
8.5 This clause is intended to ensure that NZDRL is afforded a fair and genuine opportunity to recover debts on your behalf and to protect NZDRL from incurring unrecoverable costs due to client misrepresentation or non-compliance.
8.6 Administrative Charges for Misrepresentation or Non-Cooperation
8.6.1 You acknowledge that NZDRL relies on the accuracy and completeness of the information you provide. Where NZDRL determines, acting reasonably, that:
(a) information provided by you was materially inaccurate, incomplete, or misleading; or
(b) you fail to respond to a written request for clarification or additional information within fourteen (14) days, followed by a second request with no response within a further fourteen (14) days; or
(c) you unreasonably refuse to authorise legal or enforcement action in circumstances where, based on the information available, NZDRL reasonably believes such action would likely result in recovery,
then NZDRL reserves the right to charge an administrative fee of $50.00 + GST per hour for all time spent on the file, including time spent prior to the triggering event.
8.6.2 This clause does not apply where:
(a) the debtor is in liquidation, bankruptcy, or subject to a formal insolvency procedure under New Zealand law;
(b) the total of legal and enforcement costs incurred to date, plus the estimated cost of the next proposed legal step, exceeds thirty-five percent (35%) of the total debt amount;
(c) the debtor is deceased;
(d) the debtor is unlocatable after both internal and external skip tracing efforts have been completed and no further legal avenues for service (including substituted service) are reasonably available;
(e) a court or tribunal has ruled against recovery of the debt, provided such ruling occurred after the debt was lodged with NZDRL; or
(f) you have notified NZDRL in writing, prior to lodging the debt, that you do not intend to pursue legal or enforcement action under any circumstances.
8.6.3 The obligation to pay this fee is not waived or diminished by any delay between the first and second request for information.
8.6.4 These charges will be invoiced in accordance with Clause 4 (Payment Terms) and may be deducted from any trust funds held on your behalf.
 

9. Client Communication with Debtors
 

9.1 You agree to cease all communication with the debtor for the duration that the file is managed by us unless otherwise directed by us.
9.2 If you are contacted by the debtor, you agree to refer all contact to us.
9.3 If you choose to engage in contact with the debtor and resolve the account at a negotiated rate less than our assignment, or resolve the account in full without our involvement, we are still entitled to charge full commission and you agree to pay this.
 

10. Default
 

10.1 Should you fail to pay NZDRL the amounts as set out in a Tax Invoice within 30 days of the date of the Tax Invoice, NZDRL, its agents, or solicitors will have the right to do one or more of the following actions:
10.1.1 charge you monthly interest on any overdue amounts owed by you at a rate of 5% per annum above the Reserve Bank of New Zealand’s official cash rate until the date of payment;
10.1.2 terminate or suspend the provision of services (including ceasing to instruct solicitors in any legal action) without notice;
10.1.3 set-off monies due to you with monies you owe us in respect of all of your debts;
10.1.4 commence legal action to recover amounts owed to NZDRL, including any additional collection costs;
10.1.5 hold any refunds due to you until your account with NZDRL is paid in full within the trading terms; and
10.1.6 list a default against you with a credit reporting agency.
10.2 In addition to clause 10.1, you will be liable for all collection costs, legal fees, and disbursements which we may incur arising from the default, calculated on the indemnity basis.
 

6.1.6 You warrant that any debt referred to NZDRL for recovery complies with the Credit Contracts and Consumer Finance Act (CCCFA) if applicable.
7.1.9 Clients must notify NZDRL of any payment or settlement within 48 hours. Failure to do so will result in full commission being payable.

11. Termination
11.1 Either party may terminate this Agreement subsequent to providing the other party written notice to rectify material breach of the Agreement, and there remains a failure of the other party to rectify the breach.
11.2 In addition to clause 11.1, NZDRL reserves the right to terminate the Agreement as it sees fit.
11.3 On termination, NZDRL is discharged from any further obligations under this Agreement other than those set out in clause 11.4(b)(ii).
11.4 Upon termination of this Agreement:
11.4.1 you must comply with your payment obligations set out in clause 9 in relation to Tax Invoices issued before and after termination; and
11.4.2 NZDRL will:
a. return all Confidential Information requested by you in writing, within 30 days of receipt of your request if your account with NZDRL has been paid in full;
b. comply with any procedural requirement in respect of any ongoing legal proceeding; and
c. keep a copy of all referred documents relating to a debt will remain on file even if the contract is cancelled.
 

12. Disclosure of Confidential Information
12.1 A party may only disclose Confidential Information:
12.1.1 if the information is in the public domain at the date of this Agreement or subsequently becomes in the public domain (other than as a result of a breach of a confidentiality obligation of a party under this Agreement or any other obligation of confidence);
12.1.2 if the information is required by law, court order or a regulatory body; or
12.1.3 to any other person who must know for the purposes of this Agreement on the basis that the person keeps the information confidential.
 

13. Confidentiality
13.1 The parties must keep details of this Agreement confidential and may only disclose particulars of this Agreement to its advisers for the purpose of enforcing or exercising rights granted under this Agreement or to comply with any law or order of any competent court or tribunal or other authority.
 

14. Privacy
14.1 Any personal information disclosed by you to NZDRL is subject to and will be handled in accordance with the Privacy Act 2020 (New Zealand) and the applicable privacy laws.
14.2 As part of providing the services to you, NZDRL might disclose personal information and sensitive information about the debtors (or natural persons connected with the debtors) to you. You agree that any information that NZDRL provides to you about the debtors (or natural persons connected with the debtors) must be used and handled by you in accordance with the Privacy Act 2020 (New Zealand) and the applicable privacy laws.
14.3 When you collect personal information and sensitive information about the debtors (or natural persons connected with the debtors) and disclose this information to NZDRL, you agree that you have complied with the Privacy Act 2020 (New Zealand) and the applicable privacy laws.
 

15. Limitation of Liability
15.1 NZDRL shall not be bound by any other covenants, representations, or warranties other than those specified in this Agreement.
15.2 While NZDRL does not purport to limit or otherwise affect the operation of New Zealand laws, you agree not to hold NZDRL liable for any loss, damage, or expense incurred (on either an express or an implied basis) from or by the acts or omissions of NZDRL, its employees, agents, or solicitors while NZDRL acts in accordance with the terms of this Agreement.
15.3 To the extent that certain laws cannot be excluded, restricted, or modified, these Terms must be read subject to any such laws. If such laws apply, then to the extent that NZDRL is entitled to do so, its liability shall be limited, at its discretion, to:
15.3.1 the supplying of the services; or
15.3.2 the payment of the cost of having the services supplied.
15.3.3 NZDRL's liability is capped to the amount of commission and or fees earned on the file.
15.3.4 NZDRL shall not be liable for any failure or delay in the performance of its obligations under this Agreement if such failure or delay is caused by events beyond its reasonable control, including but not limited to acts of God, war, terrorism, natural disasters, strikes, lockouts, and government restrictions.

15.4 You warrant that any debt referred to NZDRL for recovery complies with the Credit Contracts and Consumer Finance Act (CCCFA) if applicable.

16. Indemnity

16.1 You will indemnify NZDRL and our employees against all losses, damages, expenses, and costs (on a full indemnity basis) that NZDRL or our employees may sustain or incur as a result, whether directly or indirectly, of:

16.1.1 any breach by you of this Agreement;

16.1.2 any misleading, false, or insufficient details being supplied by you;

16.1.3 any negligence or wilful misconduct by you; and

16.1.4 any third-party claim, except third-party claims arising out of or relating to our negligence or our breach of this Agreement.

16.2 You will also indemnify NZDRL and their agents against all losses, damages, expenses, and costs (on a full indemnity basis):

16.2.1 Arising out of any repossession or seizure of assets carried out on your behalf;

16.2.2 Arising out of any action taken in order to give effect to your instructions; and

16.2.3 In relation to any information (or use of information) as supplied by you.

17. Waiver

17.1.1 A party does not waive a right, power, or remedy if it fails to exercise or delays in exercising the right, power, or remedy. A single or partial exercise of a right, power, or remedy does not prevent another or further exercise of that or another right, power, or remedy. A waiver of a right, power, or remedy must be in writing and signed by the party giving the waiver.

18. Severability

18.1 Each of these Terms is severable from the others, and severance of a term will not affect any other term.

19. Entire Agreement, Modification, Waiver and Validity

19.1 This Agreement constitutes the entire agreement between the parties in connection with its subject matter and supersedes all previous agreements, understandings, or communications between the parties in connection with its subject matter.

19.4 NZDRL reserves the right to amend these Terms and Conditions at any time by providing 30 days' written notice to the client via email. Continued use of the services after the notice period constitutes acceptance of the amended terms. If the client does not accept the amended terms, they must explicitly object in writing before the changes take effect. This is in accordance with Clause 8.3(b).

19.3 The failure of any Party to insist upon performance of any of the terms, conditions and provisions of this Agreement shall not be deemed a waiver of future compliance therewith by the Party by which the same is required to be performed hereunder and shall in no way prejudice the remaining provisions of this Agreement.

20. Notifications

20.1 Any notice of communication given pursuant to this Agreement shall be deemed duly served if delivered personally by hand or sent in the ordinary course of mail to the last known place of business or abode of the Party to whom the communication is addressed. Service may also be effected by electronic facsimile or email to the last known facsimile number or email address, at the last known place of business or abode of the Party to whom the facsimile or email is addressed.

21. Jurisdiction and Law

21.1 Unless otherwise agreed in writing by NZDRL, at its sole selection, the Courts of New Zealand will have exclusive jurisdiction in relation to all matters concerning these Terms. You irrevocably waive any objection to the venue selected by NZDRL in relation to any legal proceedings concerning these Terms. The laws of New Zealand will govern these Terms.

22. Miscellaneous

22.1 This Agreement shall not be construed in any way as to constitute a partnership between the Parties.

22.2 Upon the signing of this Agreement, the parties assume full understanding of the text, terms and conditions of this Agreement and agree to be bound by the Agreement.

22.3 All headings shall be a guide only and shall have no meaning for the purposes of interpretation of this Agreement.

23. Dispute Resolution

23.1 In the event of any dispute arising out of or in connection with this Agreement, the parties agree to first attempt to resolve the dispute through good faith negotiations.

23.2 If the dispute cannot be resolved through negotiations within 30 days, either party may refer the dispute to mediation by a mediator agreed upon by the parties or, failing agreement, appointed by the President of the New Zealand Law Society.

23.3 If the dispute is not resolved within 60 days of referral to mediation, either party may commence legal proceedings in accordance with clause 21 (Jurisdiction and Law).

24. Data Retention

24.1 NZDRL will retain all data and documents related to the services provided under this Agreement for a period of seven (7) years from the date of termination of this Agreement.

24.2 After the retention period, NZDRL will securely destroy or delete all data and documents unless otherwise required by law.

25. Service Level Expectations

25.1 NZDRL will use its best efforts to provide the services in a timely and efficient manner, in accordance with industry standards and best practices.

25.2 NZDRL will provide regular updates to you on the progress of the services and will respond to any inquiries or requests for information within a reasonable timeframe.