Terms & Conditions

Collection commission

The Tenancy Practice Service Ltd trading as NZ Collections (NZC) 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, NZC will then load the commissionable rate to the top of the debt. NZC 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.

NZC may choose at its sole discretion which debts will attract its collection commission. NZC does not accept liability for not collecting its commission. NZC will be entitled to charge and receive commission on any amount collected.


Cancellation of debt

If you cancel a debt lodged with NZC 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 NZC 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 NZC 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 NZC 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.


Direct payments

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 NZC, full commission is payable by the creditor to NZC. NZC may issue an invoice for this commission.



NZC takes no responsibility for the unsuccessful collection of a debt.



NZC 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.


Default payments

NZC reserves the right to pass on the cost of defaults to the debtor. NZC 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. NZC discloses this cost to the debtor and the charges are part of a verbal contract with the debtor. NZC will take all reasonable measures to ensure the number of defaults is mitigated.


Incorrect information

If a person who lodges a debt with NZC provides us with incorrect information then NZC may suffer extra work to correct that incorrect information where it can be corrected.

NZC 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.

NZC takes no responsibility for acting on information that is provided to it, which later proves to be incorrect or untrue. NZC 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.



NZC 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.


Commission charges

NZC charges 20%+GST on money collected for debts over $750. Commission is charged on all sums collected.

NZC does not add GST to the top of debts to be paid by the debtor. 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. 


Transaction fee charges

All direct debit and credit card transactions from debtors to NZC will incur a $0.89 transaction fee to cover the cost of transactions charges incurred by NZC 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.

NZC 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, NZC reserves the right to charge a $5 administration fee at the time each payment is received.


Court and Tracking Costs

NZC may cover costs such as court filing fees, lawyer’s fees or tracking fees in order to recover a debt. Some or all of these costs may then be added to the debt and taken as disbursements by NZC before making payouts to the creditor. 

“Costs” shall mean any sum of money advanced by NZC or incurred by NZC and paid by NZC on the client’s behalf.

The repayment of costs to NZC shall take precedence over all other payments. Once all “costs” are paid to NZC then any further payments (or part thereof) shall attract commission at NZC’s applicable rate.


Administration charge

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

NZC 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 Enforcement

If the debtor is located and he/she/it refuses to pay the debt voluntarily, NZC reserves the right to use any means necessary to collect the debt, including District Court Enforcement. 

NZC will decide when enforcement is the best course of action and then may cover some of the costs to start the enforcement process. 

If the client does not gain an amended Court Order to include NZC’s collection costs, the client’s proportion of the Court ordered debt will be reduced by the applicable commission rate. Enforcement costs, which include Court and solicitor’s preparation of documents may be added to any debt if that course of action is required. 


Credit history

All debtors are loaded into the Centrix database at the discretion of NZC. Debtors loaded into Centrix may also be removed at the discretion of NZC.


False information

If a creditor lodges a debt with NZC and NZC has reason to believe that the creditor has provided false or misleading information, then the creditor consents to NZC running a credit check on the creditor’s credit file to help NZC further assess whether their information provided is in fact correct or false.


New information

If NZC obtains new information in the course of our duties, NZC 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 NZC changing.