TERMS AND CONDITIONS OF BUSINESS OF CREDIT LIMITS LTD

 

1          DEFINITION

 

In these conditions the following expressions shall have the following meanings:-

1.1       ‘Client’ means the person or company which instructs Credit Limits to collect a Debt.

1.2       ‘Client Account’ means the separate bank account maintained by Credit Limits on behalf of the Client relating to monies collected on behalf of the Client.

1.3       ‘Collection’ means the collection of any debt or any part thereof for which Credit Limits has accepted instructions from the Client.

1.4       ‘Commission’ means the commission payable by the Client to Credit Limits.  Credit Limits will notify the Client separately of the amount of Commission payable.

1.5       ‘Court Action’ means County Court action or other legal proceedings issued on behalf of the Client.

1.6       ‘Credit Limits’ means Credit Limits Ltd of 1-7 Moxon Street, Barnet, Herts, EN5 5TY, England.

1.7       ‘Creditor’ means the person or company whose unpaid debt Credit Limits has been instructed to collect and in appropriate circumstances will include the Client.

1.8       ‘Debt’ means a sum of money owed by a Debtor to the Creditor.

1.9       ‘Debtor’ means the person or company who owes money to the Creditor.

1.10     ‘Provision’ means a payment in advance requested by Credit Limits on account of costs relating to Court Action or any other expenses to be incurred on behalf of the Client.

1.11     ‘Terms’ means these terms and conditions of business.

 

2          GENERAL

 

2.1       Credit Limits agrees to accept instructions from the Client and to undertake the Collection in accordance with these Terms.

2.2       Upon the Client instructing Credit Limits, the Client will be subject to the Terms.

2.3       There shall be no modification or addition to the Terms unless made in writing and authorised by a Director of Credit Limits.

2.4       Credit Limits has a policy of Professional Indemnity and is registered under the Data Protection Act 1998.

2.5              These Terms shall be governed and construed in accordance with the laws of England and Wales.

3          OBLIGATIONS OF CREDIT LIMITS

 

3.1       Credit Limits will take all such steps as it considers entirely appropriate to effect the Collection. 

3.2       Credit Limits may sub-contract all or any part or all of the Collection as it deems necessary.

3.3       Prior to incurring any expenses on behalf of the Client, Credit Limits will obtain approval from the Client.

3.4       If the Collection cannot be effected by negotiation, Credit Limits will:

3.5       Credit Limits reserves the right to terminate work on any Collection for any reason whatsoever.

 

4          OBLIGATIONS OF THE CLIENT

 

4.1       The Client will send Credit Limits such information as Credit Limits requires in relation to the Collection.  The Client will promptly reply to any enquiry raised by Credit Limits and supply any documentation required by Credit Limits.

4.2       The Client undertakes to inform Credit Limits about any known dispute relating to the Collection.

4.3       The Client and the Creditor undertake not to contact the Debtor once Credit Limits have been instructed on the Collection and to refer any attempt by the Debtor to make direct contact with the Client and/or the Creditor to Credit Limits.

4.4       If the Debtor makes a payment direct to the Client or to the Creditor, the Client will immediately inform Credit Limits of the amount of the payment and the date of receipt.

 

5          COURT ACTION

 

5.1       Credit Limits will only start a Court Action upon receipt of  authorisation from the Client or receipt of a Provision.

5.2       The Client will be liable for all legal costs and expenses incurred on its behalf by Credit Limits arising from the Court Action or otherwise.  Where appropriate this may include some or all of the legal costs of the Debtor.

5.3       All legal costs and expenses recovered from the Debtor are paid to the Client free of any Commission.

5.4       Prior to taking Court Action, the Client can:-

5.5       Once Court Action has started, the Client is obliged to pursue the matter to a conclusion. In the event that the Client wishes to discontinue any Court Action, then it does so on terms that it will be responsible for all legal costs and disbursements incurred (including those of the Debtor).

5.6       Credit Limits reserves the right to refuse to commence Court Action on behalf of the Client without being required to give any justification.

5.7       The Client indemnifies Credit Limits in respect of any costs or expenses incurred in taking Court Action on behalf of the Client and in particular in respect of any Orders for Costs made in favour of the Debtor whether against the Client or otherwise.

 

6          PAYMENTS AND CHARGES

 

6.1       Payment of invoices issued by Credit Limits relating to the Collection will be by deduction from any funds collected by Credit Limits on behalf of the Client.

6.2       Where Credit Limits are owed more by the Client than is held in the Client’s Account, the Client will pay the difference to Credit Limits within 30 days of the presentation of its invoice, net of any bank charges.  (By way of example, this situation arises where payments are made directly to the Creditor by the Debtor).

6.3       If payment of any invoice rendered by Credit Limits to the Client is late, then the provisions of the Late Payment of Commercial Debts (Interest) Act 1998 will apply.

6.4       Credit Limits will account for monies recovered relating to the Collection (after clearance) to the Client once every month on or around the 20th of each month.  Where the Client is based overseas, any monies held on Client Account for less than £1000 may be carried over to the following month.

6.5       Where the Creditor accepts by way of payment the return of goods supplied or some other form of compensation, the Commission will be paid by the Client on the equivalent value of such settlement.

6.6       If the Debtor is willing and able to pay all or any part of the Debt and the Client requires closure of the Collection, the Commission will be due on the amount the Debtor is willing and able to pay.

6.7       The Debt will usually be collected in the local currency of the Debtor’s country of trading.  Where any exchange of currency has to take place in order to make payment to the Creditor, any shortfall will be borne by the Client.

 

7          TERMINATION

 

7.1       All or any papers and information relating to Collection cases will be retained by Credit Limits for 2 years and then destroyed confidentially.  Credit Limits will keep such data confidential unless required to disclose details.

7.2       If the Client is not the Creditor, Credit Limits undertakes not to solicit work from the Creditor whose Debt Credit Limits are handling and not to contact the Creditor for information about current cases without the prior agreement of the Client.

 

CREDIT LIMITS LTD                                                                                                May 2004