Debt recovery can be confusing at times...
So we’ve answered a few common questions below. Nothing beats picking up the phone though, so if you’ve got questions that aren’t answered here, you can speak to our friendly staff on (07) 3287 2433
ARRANGE A FREE DEBT ASSESSMENT
Worried about how your client might react, or the process involved ?
Fill in the form below and we can arrange a time to discuss your debt and the best way to collect it. 100% Free (No obligation)
Frequently Asked Questions
Our fee is calculated as a percentage of amount that we collect.
Legal fees and outlays are payable by you in addition to the fee scale outlined below. In most cases your legal fees can be added to your claim and recovered from the debtor (subject to court rulings).
Fees on large recoveries or for high volumes of work are negotiable. We are keen to create new business partnerships and we are more than happy to work with you to make it happen.
Our commission works on a sliding scale. The larger the debt, the lower the commission percentage charged. Commission is payable on every dollar received from the debtor. For example, if the total debt is $4,000.00 and the debtor pays $1000.00, you will be charged $150.00+GST being $1000.00 x 15%+GST).
These fees relate only to commercial debt collection, debts for unpaid memberships, subscriptions and other predominantly consumer or domestic related debts are to be negotiated, please call our office on 07 3287 2433 for more information.
Debts where the oldest overdue amount was due more than 12 months ago will attract a ageing surcharge of 5%+GST on the whole debt. Example: If the total debt is $2500.00 and the oldest invoice was due for payment more than 12 months ago, then the commission rate is 20%+5%=25%+GST calculated on the whole debt.
Disputed debts incur a non-refundable account setup fee of $50.00+GST per case. You are required to advise us if the Debtor disputes all or part of the amount to be collected. We may wave this fee high volume and existing long term clients.
|Fee % (Ex-GST)
|$250 to $500
|40% (Min Fee $50.00)
|$501 to $1,000
|$1001 to $3,000
|$3,001 to $10,000
|$10,001 to $50,000
This is a difficult question and the answer depends on many factors. Nexus will action your request immediately upon receipt of your instructions.
Experience shows us that debts not requiring litigation are often settled within 14-21 days. We’ve had plenty of debts settled within 24–48 hours.
Each circumstance is of course different though, perhaps if a debtor is experiencing genuine hardship we may recommend to you that we enter into a payment arrangement (which we will monitor and enforce) to allow the debtor time to recover and ensure you ultimately receive your payment in full. Remember, we only get paid when we collect the debt. Rest assured we want to get paid as quickly as you do.
There are different laws in each state and territory but in general debt collectors are prevented from adding their costs to a debt.
In Queensland for example, the Debt Collectors (Field Agents and Collection Agents) Act 2014 specifically precludes commercial agents from adding their collection fees to the amount owed by the debtor unless you have a signed agreement in writing with your customer that was entered into before supplying the goods or services to them and indemnifying you against all debt collection fees and charges.
** Note: Recent decisions in the Queensland Civil & Administrative Tribunal indicate that the tribunal may be taking the view that you cannot add a debt collection agents commission fees regardless of having a costs recovery clause in your contract.
Nexus operates throughout Australia supported by a panel of law firms who prepare our legal documentation in all states and territories. Our offices are located in Brisbane and on the Gold Coast and all collection activities are managed from the Gold Coast office. Nexus has field operatives throughout Australia so we can handle all of your collection requirements regardless of where you or the debtor is located.
In most cases if the debt is owed by an ABN holder and relates to a commercial transaction, we can list a payment default with a credit reporting agency on your behalf, and this default listing will adversely affect the debtors credit rating.
Additionally, if the matter proceeds to court and a judgment is obtained this will appear on your customer’s credit file maintained by Equifax, Creditor Watch and other credit reporting agencies. Judgments are frowned upon by credit providers in today’s economic climate.
A judgment will mean that it is near impossible for your customer to obtain credit until the debt is cleared and even after that time, there is no guarantee that credit provider will want to deal with the debtor. Credit doesn’t just mean a loan or a credit card, it can include utilities such as gas, phone or electricity, and store accounts such as “interest free” deals from retailers. The damage that a judgment can do is lasting. It remains on the person’s file for up to 5 years.
Our recovery process is focused and relentless, but fully compliant with state and federal privacy and trade practices laws in relation to how we pursue debtors.
After all other avenues have been exhausted, we may recommend issuing legal proceedings. This is done strictly on a consultative basis with you, and all costs will be clearly explained up front for you.
Legal proceedings do not always result in recovery of the debt or your costs and issuing proceedings for the wrong reasons can be an expensive exercise. We have significant experience in litigation matters and are well equipped to offer you the best advice available.