Terms and conditions
NATIONAL COLLECTIONS LIMITED Trading as National Collection Service (NCS) adds commission to the top of debts lodged after October 2010 where there is a debt collection clause included in the contract that was signed by the debtor. This may affect the length of time the plan runs for and may also alter the total commission charged over the total length of the plan.
When a creditor states they have/have had a debt collection clause in their contract or invoice or displayed in store, National Collection Service will then load the commissionable rate to the top of the debt. National Collection Service relies upon this information as being correct.
Collection commission is not added to an attachment order if the debt needs to be enforced through the District Court. However, these costs will remain on the debtor’s credit file until the debt is paid in full or the debt expires.
National Collection Service may choose at its sole discretion which debts will attract its collection commission. National Collection Service does not accept liability for not collecting its commission. National Collection Service will be entitled to charge and receive commission on any amount collected.
Cancellation of debt
If you cancel a debt lodged with NCS you agree to pay a cancellation fee regardless of how much work has been done on the file.
The creditor agrees that once the debt has been lodged with National Collection Service that he/she/it will not intermeddle in the management of the repayment of the debt. They agree 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 creditor intermeddle (as above) and cause the cancellation or alteration of the repayment plan then the creditor agrees to pay National Collection Service on demand the full commission payable, whether or not any further monies are ever paid.
The creditor further agrees that if the payment referred to above is not paid in full within 7 days of the demand that National Collection Service is at liberty to take any action it sees fit to facilitate payment, including lodging the commission owing to their database as a debt, with the creditor as the new debtor, and/or lodging a claim with a tribunal or court.
Payouts are made every three months in March, June, September, and December. Payouts within New Zealand cost $5.00+GST, whereas payouts to accounts outside New Zealand will incur a fee of $100 per payment.
If a debtor pays either an investor, property manager, or creditor direct, by way of voluntary payment, or as a result of court enforcement or by any other means, after the debt has been lodged with National Collection Service, full commission is payable by the creditor to National Collection Service. National Collection Service may issue an invoice for this commission.
National Collection Service takes no responsibility for the unsuccessful collection of a debt.
National Collection Service reports are offered in good faith and are based on historical data but they do not warrant or guarantee a successful collection of a debt and should not be interpreted as warranting any particular outcome.
National Collection Service reserves the right to pass on the cost of defaults to the debtor. National Collection Service may charge the debtor a default fee each time they default on a payment, this fee will be deducted from money paid in that payout period. The default fee is added to the top of the debt so the creditor 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. If a debtor defaults three times in a row, their plan will be suspended. National Collection Service discloses this cost to the debtor and the charges are part of a verbal contract with the debtor. National Collection Service will take all reasonable measures to ensure the number of defaults is mitigated.
If a person who lodges a debt with National Collection Service provides us with incorrect information then National Collection Service may suffer extra work to correct that incorrect information where it can be corrected.
National Collection Service reserves the right at its sole discretion to charge for their time at a reasonable rate to correct the incorrect information and/or to apologise to any person adversely affected by the incorrect information.
National Collection Service takes no responsibility for acting on information that is provided to it, which later proves to be incorrect or untrue. National Collection Service 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 overpayment is made and such overpayment is paid out to the creditor, then any consequential refund shall be made direct to the debtor by the person/firm/creditor lodging the debt.
Reinstatements of plans
Plan reinstatements on direct debits attract additional time and cost to facilitate.
Reinstatements of cancelled direct debits are charged to the debtor as additional fees.
National Collection Service 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 connected.
The debtor agrees that if the creditor 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 creditor.
National Collection Service charges 25%+GST on money collected for debts over $750. Debts under $750 are charged at 40%+GST. Commission is charged on all sums collected.
Transaction fee charges
All direct debit and credit card transactions from debtors to National Collection Service will incur a $0.89 transaction fee to cover the cost of transactions charges incurred by National Collection Service during the duration of the plan. This fee is added on to the debt and is paid separately from the debt itself. This cost is paid by the debtor and is not in any way paid by the creditor.
National Collection Service does not accept payment of a debt from a debtor by automatic payment. If the debtor chooses to ignore this and make payment by automatic payment, National Collection Service reserves the right to charge a $5 administration fee at the time each payment is received.
If a creditor has failed or refused to pay an invoice where commission is due for payment in full which has been paid direct to the creditor, they will be charged a fee of $800+GST and this will be lodged against the appropriate party.
Court and Tracking Costs
National Collection Service may cover costs such as court filing fees, lawyer’s fees or tracking fees if the creditor chooses not to pay them within 21 days of a report or invoice being sent to the client.
“Costs” shall mean any sum of money advanced by National Collection Service or incurred by National Collection Service and paid by National Collection Service on the client’s behalf.
The repayment of costs to National Collection Service shall take precedence over all other payments. Once all “costs” are paid to National Collection Service then any further payments (or part thereof) shall attract commission at National Collection Service’s applicable rate.
A $5+GST administration charge may apply to all debts at each payout. This amount is not charged to the debtor as it is not a fee associated with the collection of the debt, but a fee associated with the cost of paying creditors. It covers administrative work completed during the payout process. It applies to clients paid by cheque, direct credit or any other payment method.
Credits and compensation
National Collection Service 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 their plan; compensating a debtor’s account for an incorrect default charge; or as a negotiation tool to aid in the overall collection of a debt.
Debt assignment – Referred to as 50/50
National Collection Service reserves the right to use any means necessary to collect the debt, including District Court enforcement.
National Collection Service will send a report of the next step in the process and you will have the opportunity to cover the costs of enforcement.
If National Collection Service has not received payment of an invoice from the creditor within 21 days of the report being sent, the debt is then deemed to be assigned to National Collection Service.
National Collection Service will then charge a commission rate of 50%+GST for debts above $751 and 75%+GST for debts under $750.
All debtors are loaded into the Centrix database at the discretion of National Collection Service. Debtors loaded into Centrix may also be removed at the discretion of National Collection Service.
If a creditor lodges a debt with National Collection Service and National Collection Service has reason to believe that the creditor has provided false or misleading information to National Collection Service, then the creditor consents to National Collection Service running a credit check on the creditor’s credit file to help National Collection Service further assess whether their information provided is in fact correct or false.
If National Collection Service obtains new information in the course of our duties, National Collection Service will not disclose that information to any person or organisation.
Our prices may change due to supplier charges changing, our service changing or the level of risk to NCS changing.