Terms & Conditions

  1. THE PARTIES. The Parties to this Agreement are The Credit Protection Association PLC (hereafter referred to as “CPA”) the person, firm, Limited Company or PLC named overleaf (hereafter referred to as “the Client”) and Solicitors retained by CPA and the Client (hereafter referred to as the “Retained Solicitors”).
  2. ACCEPTANCE. When the Authorisation is accepted and processed CPA will send written Notice accordingly to the Client which will confirm that the debtor has been contacted by either telephone, letter and/or email to confirm the debt and to chase for payment of the debt, CPA’s charges, late payment compensation and interest as is due. If the debtor fails to respond to that communication, CPA will forward the Authorisation and copy documents to the Retained Solicitors.
  3. SOLICITOR’S LETTER BEFORE ACTION. The Retained Solicitors will write a letter to the debtor as required by the Civil Court Procedure Rules demanding payment of the debt within 7 days and warning that failure to comply will result in the issue of Proceedings. For commercial debts The Letter Before Action will INCLUDE COSTS AND CHARGES MADE BY CPA AND THE RETAINED SOLICITORS which are recoverable from the debtor. For consumer debts see clause 18. In the event of payment, instalment payment arrangement or any form of settlement being effected in response to such letter CPA percentage remuneration will be invoiced by CPA to the Client in accordance with Clauses 16 and 17 and the retained solicitors will invoice the Client for their costs.
  4. ISSUE OF PROCESS AND FEES. The Retained Solicitors will write to the Client confirming receipt of Authorisation and will request payment of the appropriate Statutory Court Issue Fee(s) and no Legal Proceedings will be commenced until the Retained Solicitors has received payment of the fee(s) from the Client; this includes proceedings in respect of Judgment or Decree Enforcement. If no response is received from the Client by the retained solicitor to their letter(s) within 14 days requesting the statutory court issue fees, the retained solicitor will automatically close their file as ‘assumed paid’ and notify CPA accordingly. CPA will then close its file as ‘assumed paid’ and will render an invoice to the client in accordance with clauses 16 and 17 below.
  5. DIRECT ARRANGEMENTS BETWEEN CLIENT AND DEBTORS. The client must refrain from making any arrangements or communications with the Debtor as this may prejudice the ability of the retained solicitors to recover the CPA charges and solicitor costs and may result in the client being liable for all CPA charges and the solicitor’s costs included on the Letter Before Action.
  6. INSTRUCTIONS FROM CLIENTS. Neither CPA nor the Retained Solicitors will be responsible for acting or failing to act upon any instructions given orally by the Client. All instructions must be given and/or confirmed in WRITING and communicated by FAX, E.MAIL or POST.
  7. PAYMENT NOTIFICATION AND DEBTOR/CLIENT DIRECT ARRANGEMENTS. The Client is obligated to notify IMMEDIATELY by FAX, E.MAIL or LETTER to both the Retained Solicitors and CPA Debt Recovery Department of any payment received by the Client from the debtor(s); also any arrangement which the client may have entered into with the debtor(s). The client will be liable for all CPA charges and retained solicitor’s costs on the Letter Before Action and any additional Statutory Court Issue Fee(s) and/or Solicitor’s Costs, Enforcement Officer/Bailiff fees, costs and expenses and CPA Remuneration incurred prior to receipt of such Notice and/or by reason of failure to notify in accordance with this Clause shall be the liability of the Client.
  8. CLlENT(S) CHANGE OF ADDRESS. The Client is obligated to notify the Retained Solicitors and CPA DEBT RECOVERY DEPARTMENT by FAX, E.MAIL or LETTER of any change in their address and all such communications must quote the Relevant CP Case reference number as shown on the letter of acceptance. The terms of Clauses 3, 4, 5, 7, 16 & 17 with regard to Statutory Court Issue fee(s), Solicitors’ Costs, Enforcement Officer /Bailiff fees, costs and expenses and CPA Remuneration shall apply.
  9. AGENT & ATTORNEY. CPA and the Retained Solicitors are hereby authorised to receive all money recovered from debtor(s) and to act as Agent and Attorney for the Client in all matters of whatsoever nature arising in the course of the legal proceedings instituted against the debtor(s).
  10. COLLECTION AGENCY AUTHORITY. CPA is hereby authorised to receive all monies recovered, to endorse cheques payable to Clients and to clear such cheques through CPA’s Bankers and to deduct from all cleared funds CPA Remuneration + V.A.T.
  11. DEFENDED ACTIONS & NEGOTIATED SETTLEMENTS. In all cases where a Defence is filed in Court the Retained Solicitors will upon receipt of a copy of the Defence from the Court send this to the client and CPA together with a guidance letter on procedure and costs. In all such cases the Retained Solicitors will inform CPA as to whether or not the client has retained their services to continue to act on their behalf and will keep CPA informed as to the progress of the Action and final outcome. CPA Remuneration will continue to apply to all such cases. The Retained Solicitors shall inform CPA of all compromises or settlements and CPA will invoice the Client for their Remuneration + V.A.T.
  12. ABANDONED CASES. A case will deem to have been abandoned by the Client and proceedings automatically terminated and the file closed in the event that neither the Retained Solicitors nor CPA have received any instructions or payment of Statutory Court Issue Fees within four weeks of written request. All Fees, Costs, CPA Remuneration + V.A. T. invoiced will remain the liability of the Client and payable by the Client.
  13. LIABILITY FOR SOLICITORS INVOICES. CPA is not liable for any invoices rendered to the Client(s) by the Retained Solicitors and all such invoices are the Client(s) total and exclusive liability.
  14. CONTRACT JURISDICTION. The Contract shall be governed and construed in accordance with English Law as may be applicable and all parties to the Agreement submit to the jurisdiction of the appropriate Court of Jurisdiction within the United Kingdom for the purposes of all and any Legal Proceedings arising out of or in connection with or under the terms of this Agreement.
  15. DEBTS OWED BY DEBTORS RESIDENT OUTSIDE OF ENGLAND, WALES AND SCOTLAND. All such matters will be subject to separate charges and advance security payments which will be quoted for on receipt of this form.
  16. CPA REMUNERATION. The client will be liable for CPA remuneration from the date of the CPA Recovery Acknowledgement Letter confirming acceptance of the Recovery Authorisation. CPA remuneration of 15% plus VAT will be invoiced to the client by CPA and be payable by the client to CPA and shall be calculated on the debt amount or any lesser compromise value or settlement sum accepted by the client. REMUNERATION BY CPA AND RETAINED SOLICITOR COSTS WILL BE CHARGED AND DUE AS FOLLOWS:
    1. Where settlement is effected by payment to CPA, the Retained Solicitors or Agents OR
    2. Settlement is effected directly with the debtor by acceptance of money or by acceptance of goods, transfer of land, property or other beneficial consideration OR
    3. Settlement is arranged and accepted by an instalment payment arrangement whether or not the debtor defaults in respect of any such arrangement OR
    4. Where the Client directs CPA or the Retained Solicitors to discontinue or withdraw action against the debtor OR
    5. Where the Client transfers the Litigation Action to other Solicitors with or without reasonable explanation or cause.
  17. CPA REMUNERATION. CPA Remuneration and a proportion of the clients CPA subscription is recoverable from the debtor at the Courts discretion for commercial debts only. For consumer debts, CPA Remuneration may only by claimed if the client has incorporated an appropriately worded clause in written Terms and Conditions which have been signed as accepted by the debtor and this is produced at the time of submission of the Recovery Authorisation.
  18. PAYMENT OF CPA REMUNERATION. CPA Remuneration will be due and payable by the Client to CPA within 14 DAYS of the date of invoice(s) rendered to the Client and CPA reserve the right to charge interest at the rate of 2.5% above current National Westminster Bank plc rate per month on all sums outstanding and unpaid beyond due date of payment.