New Zealand Collections acts as agent for the creditor but is not the creditor. NZC charges commission plus GST on any money collected from the debtor. The liability of this commission or other fees is at the sole discretion of the creditor and depends on whether the debtor agreed to pay the costs of collection when they entered into the contract with the creditor.
The creditor must be able to show on request that the debtor agreed to pay collection costs at the time they entered into the contract with the creditor.
Payouts are made quarterly in March, June, September and December and our commission is deducted at the time of each payout.
You will receive a statement with a breakdown of the amount being paid well in advance of the payment.
As of 1 August 2020, all new debts lodged will have our new pricing structure as follows:
20%+GST of monies collected
25% of debt lodged Collection fees are added to the debt if a debt collection clause is applicable. We do not add GST to the top of the debt. We reserve the right to lower commission on larger debts lodged with us and we will continue to review our processes and policies relating to larger debts.
Cancellation of debt
A cancellation fee may apply depending on the amount of work we’ve done on the file.
District Court Enforcement
NZC may cover some of the costs of tracking and/ or enforcement which includes Solicitor and District Court application fees.
The District Court will then add these costs to the top of the debt to be paid by the debtor and recover these costs first before making pay-outs to the creditor.
An Attachment Order is where we need to apply to enforce payments directly from the debtor’s income through the District Court. An Attachment Order may be required if we are unable to make contact with the debtor or if the debtor is refusing to pay.
Cost – $200.00
This cost is made up of a $50.00 application fee charged by the Ministry of Justice and a $150.00 lawyer’s fee as a lawyer is required to sign the document before it is sent to the Ministry of Justice.
NZC may cover these costs upfront and will first recover any costs incurred as disbursements before making payouts to you.
These costs are added to the debt amount to be paid by the debtor.
Basic Tracking is where we need to find additional basic information about the debtor, usually for the purpose of obtaining a tribunal order or to enforce the debt through the District Court.
Basic information includes a date of birth or an address for service which we may be able to find through our various tracking methods. The more accurate information you can provide at the time of lodgement, the faster the process will be as we may not need to track the file.
Cost – $23.00
The cost to do this is $23.00 which NZC cover and then take as disbursements from the first payment(s) made by the debtor before making payouts to you. This cost may be added to the debt amount to be paid by the debtor if there is a clause in the original agreement that provides for this.
This is where we need to find additional information about the debtor which can be more difficult to find such as new contact information or a source of income for the purpose of enforcement.
The Ministry of Justice, the IRD and WINZ will not provide personal information for privacy reasons so we need to attempt to find this information through other legal methods.
Success with tracking varies. The information we find may provide a phone number which leads to a voluntary payment, a source of income to enforce the debt, or nothing at all.
We will continue to track the file periodically and debts are loaded with the Centrix credit bureau where we may be notified of new information at a later date.
Cost – $86.25 ($75.00+GST)
The cost to do this is $86.25 which NZC cover and then take as disbursements from the first payment(s) made by the debtor before making payouts to you.
This cost may be added to the debt amount to be paid by the debtor if there is a clause in the original agreement that provides for this.
$220 + GST
Amount added to the debt
This process is done through the District Court by a court appointed bailiff and NZC have no control over the final outcome.
These charges are due when we need to do administrative work outside what is involved in the typical collection process.
A typical collection would not attract any extra administration, but can occur in limited situations.
Changing creditor on the file
Any other administration is charged at $150 + GST per hour
Please view our terms for full prices