Debitura Standard Debt Collection Agreement 

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The following Company: 

• Company Name: <Insert Dynamically>
• Company Registration Number: <Insert Dynamically>
• Company Address:<Insert Dynamically>
• Company Contact Person: <Insert Dynamically>
• Contact Person Email: <Insert Dynamically>

Hereafter called “Client” hereby agrees to the following standard debt collection agreement. 

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Definitions: 

• Debitura: Debitura is a digital platform connecting creditors (clients) with debt collection agencies and law firms (Collectors) across the globe. Debitura is registered in Denmark under the name YouFirm ApS, company ID: 36406208.
• Client(s): Businesses (creditors) utilizing Debitura.com for debt recovery purposes.
• Claims: Undisputed monetary claims uploaded to the Debitura Platform for collection without court involvement (pre-legal debt collection cases).  
• Collector: The debt collection agency / law firm who executes the debt collection activity on behalf of the client. 

Introduction and scope of this standard agreement 

This agreement takes effect upon digital signature by the client. 

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The purpose of this agreement is to cover the debt collection performed by the collector on behalf of the client with the purpose of recovering the client's claims. 

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Besides this agreement, Debitura’s general terms and conditions also apply. ‍

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By signing this agreement the client acknowledges the following: 

• Debitura is not a collection agency or law firm but provides the software infrastructure to facilitate the debt collection process. Debitura does not provide any legal advice or support. 
• Debitura is authorized to share all data received from the client with the collector, and vice versa, to facilitate case management. 
• The relationship concerning debt collection cases is directly between the client and the Debt Collector. All financial transactions are made directly between the client and the collector and Debitura can not be held responsible / liable for any action taken by the client or the collector.
• This standard agreement only includes the recovery of undisputed monetary claims during the pre-legal / amicable phase. All cases that require legal action are not governed by this standard agreement and require a separate agreement between the client and the collector. 

Pre-legal Debt Collection Cost:

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No Cure, No Pay Model: The collector operates on a no cure, no pay basis for pre-legal debt collection cases. This means that the Client is not required to pay any upfront fees or other charges unless the debt is successfully recovered.

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Success Fee: If the debt is recovered, the collector charges a success fee based on the principal amount. The success fees are structured as follows:

• For claims of $0 to $1,999, the success fee is 30%.
• For claims of $2,000 to $7,999, the success fee is 20%.
• For claims of $8,000 to $74,999, the success fee is 15%.
• For claims of $75,000 to $149,999, the success fee is 10%.
• For claims above $150,000, the success fee is 7.5%.

Currency: The collectors' success fees will be calculated based on the prevailing currency exchange rates at the time of payment. For simplification, all currency values will be considered equivalent to USD for the purpose of calculating dues.

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Payment fees: Exchange rate costs, credit card fees and banking fees are to be covered by the client and will be deducted from the principal amount.

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Late payment fees and interest rates: All late payment fees, interest fees, and other legally permissible costs added to the principal of the claim are payable by the debtor and they are remitted to the collector.

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VAT Application: VAT is applicable to all prices and the success fee, calculated based on the VAT rate where the collector is incorporated.

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Other costs: Before the collector initiates any action which entails additional costs not explicitly mentioned in this agreement, the client must approve the additional cost in writing. All additional costs / services are optional for the client. 

Legal Actions

If a case requires legal intervention, and the Partner is equipped to provide such

services, a custom quote will be offered. The Client and the Partner must agree on all

terms and pricing for legal actions beforehand. This fee structure ensures that the

Client incurs no financial risk unless the debt is successfully collected, aligning the

interests of the Client and the Partner towards a successful resolution. All financial

terms, including potential legal actions, are transparently discussed and agreed upon

prior to engagement, ensuring clarity and mutual understanding.

Payments and Handling of Client Funds

Payment Pathway: With this agreement the client accepts, that debtors may pay into the collectors trust account to make supervision and chasing more effective. In some cases the collector prefers that payments are made directly to the client for tax and compliance reasons.

Allocation of Funds: After successfully recovering a case, the collector will deduct the success fee, interests, late payment fees, other applicable fees paid by the debtor, and VAT. 

Within 30 days of recovery, the Partner will disburse the remaining balance to the Client.

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Notifications of Direct Payments: If the debtor makes a payment directly to the client, it is the client's responsibility to inform the collector in writing within three (3) days of receipt.

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Financial Obligations: Receipt of the principal amount by the client from the debtor does not absolve the client of the obligation to pay the collector for services rendered. The client remains responsible for transferring the agreed-upon commission and fees to the collector, who will issue an invoice accordingly. 

Collection Period exclusivity and case withdrawal 

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Initial Period: Upon submission of a case to Debitura, a "collection period" of six months commences. This period is defined as the duration during which the collector is actively engaged in recovering debt on behalf of the Client.

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Extensions of Collection Period:

The collection period is automatically extended in the following events: 

• Written Promise to Pay: The collection period is extended by an additional 12 months if, after case submission, the debtor provides a written promise to pay either the collector or the Client.
• Payment Agreement or Actual Payment: Similarly, if a written payment agreement is signed, or any payment is made by the debtor to either the collector or the client after case submission, the collection period will be extended by another 12 months. 

Exclusivity and Engagement of Other Parties:

• During the collection period, the collector has exclusive rights to collect the claim. This means that the client is prohibited from communicating directly with the debtor, engaging other debt collection agencies or legal representatives for the case(s) during the collection period. 
• Breach of this exclusivity during the collection period immediately requires the client to pay the full success fee and other applicable costs to the partner, calculated as if the total claim, including all additional fees accrued, were paid by the debtor.

Case Withdrawal:

• During Collection Period: The Client may not withdraw the case during the collection period without fulfilling the obligation to pay the full success fee and all applicable fees as if the case was collected successfully. 
• After Collection Period: After the collection period ends, the client may withdraw the case without incurring any fees, and the exclusivity clause no longer applies.

Installment Payments and Discounts:

• Installment Payments: The collector is authorized to arrange installment payments with the debtor, permitting the debt to be settled over a period of up to 24 months. This arrangement can be made without requiring prior approval from the client, facilitating flexible payment solutions that may increase the likelihood of debt recovery.
• Discounts: The Partner may not offer discounts without written approval by the client. In the case of a discount the success fee is still calculated based on the principal amount. 

The Collectors Obligations towards the Client:

• Professional Services: The collector is required to provide professional pre-legal debt recovery services that comply with all legal frameworks applicable in the relevant jurisdiction.
• Debtor Contact: The collector must utilize all available means to contact the debtor in order to recover the claim. 
• Client Representation: The collector is obligated to act in the best interests of the client at all times during the debt recovery process.
• Communication and Updates: The collector must regularly update the claim status on the Debitura platform and respond promptly to any inquiries or questions from the client.

The Client's Obligations:

• Information Provision: The client is required to provide all requested information regarding themselves, the debtor, and the case as requested by Debitura or the collector.
• Communication and updates: The client must regularly check the Debitura platform for updates on the claim, and promptly respond to any questions / data request by Debitura or the collector. 
• Notification of Disputes: The Client must inform the collector if the debt is disputed or becomes disputed. It is understood that disputed cases cannot be processed through amicable debt collection methods.

Termination:

Agreement Termination: The agreement can be terminated by any party without notice if no claims are in the collection period. If any cases are in the collection period the client can not terminate this agreement without following the terms related to case withdrawal during the collection period. 

Similarly the partner is required to fulfill the debt collection process for all cases in the collection period.