1. PARTIES
1.1. Intrum Justitia (Scotland) Ltd (“IJ”) a company incorporated in Scotland whose registered office is at 24 St Enoch Square, Glasgow G1 4DB, Company No. SC320518 and the Client, who are a company incorporated in Scotland.
 
2. BACKGROUND
2.1. IJ agrees to provide the Client with debt collection services (“Services”) in relation to those debts which are put in the hands of IJ for collection by the Client upon and subject to the terms and conditions set out below.
 
3. DEFINITIONS
3.1. In this agreement the following words have the following meanings:
3.1.1. “Agreement” means this Agreement
3.1.2. “Appointed Solicitor” means the solicitor(s) instructed by IJ from time to time pursuant to clause 5 .
3.1.3. “Associated Company” means any company which is a subsidiary or a holding company of or in the same group as a party to this Agreement.
3.1.4. “Client” means the company whose name, registered company number, registered company address and incorporation details are specified in the Application Form.
3.1.5. “Collection Charge” means in respect of each Debt placed with IJ for collection the charge payable to IJ at the rates set out in the IJ Pricing Tariff as varied from time to time in accordance with clause 7.8.
3.1.6. “Debtor” means a person or corporate body howsoever formed owing a Debt to the Client.
3.1.7. “Debt” means any debt referred or to be referred by the Client to IJ for collection under this Agreement.
3.2. Words which denote the singular shall include the plural and vice versa. Reference to any gender shall include any other gender.
3.3. References to a “Clause” are to a clause in this Agreement.
3.4. References to any statute are to such statute as amended or replaced from time to time.
3.5. The ejusdem generis rule shall not apply to the interpretation of this Agreement.
 
4. SERVICES
4.1. The Client hereby appoints IJ as its exclusive agent to recover Debts and IJ agrees to accept such appointment. The Client shall not appoint any other person to recover the Debts placed with IJ, nor seek to recover the Debts itself.
4.2. IJ does not guarantee that it will recover all or part of the Debts but agrees to use its reasonable endeavours to recover the Debts.
4.3. Payments received by IJ on behalf of the Client in respect of the recovery of Debts shall be remitted to the Client net within 10 working days of receipt.
4.4. Where payments are to be submitted net, IJ will, subject to its right of set-off in clause 7.7, send to the Client all amounts recovered in respect of the Debts after the deduction of the Collection Charges and any other sums (together with any applicable VAT) due to IJ.
4.5. Debts paid direct to the Client from whatever source, shall be subject to the Collection Charges for the Services performed by IJ. Any goods or services accepted by the Client in lieu of payment for a debt shall be subject to the Collection Charges calculated on the amount by which the Debtor’s account is credited for such goods or services.
4.6. The Services are available only in relation to Debts owing to the Client for which the Client has all necessary supporting documents to prove the existence of such Debts.
4.7. IJ and the Appointed Solicitor are authorised by and on behalf of the Client to collect payments, issue receipts in relation thereto, and subject to clause 4.4, deduct there-from and retain and account for any charges owing and due to IJ and such lawyers and/or agents.
4.8. If the Client desires to withdraw a Debt placed with IJ for collection before the collection process is completed, then the Client will forthwith notify IJ in writing of such desire. If the Client withdraws a Debt placed with IJ for collection before the collection process is completed, the Client shall pay the Collection Charge that would have been payable by the Client had the outstanding balance been collected in full by IJ.
4.9. All sums payable by the Client to IJ under this Agreement shall be paid without deduction, withholding or set off for any reason whatsoever.
 
5. LITIGATION ACTIVITY
5.1. In the event that the Services include litigation collections the Client hereby consents to IJ selecting and instructing solicitors (“the Appointed Solicitor”) to recover Debts on the Client’s behalf subject to the provisions of this clause. IJ shall have absolute discretion to instruct solicitors of its own choice and to change such solicitors from time to time. IJ will NOT instruct the Appointed Solicitor to begin litigation collections without the express written consent of the Client.
5.2. Nothing contained in this Agreement will affect the professional advice of any Appointed Solicitor whose advice will be independent at all times. IJ shall not be liable for the negligence or default of the Appointed Solicitor.
5.3. Without prejudice to clauses 4.5, 4.8, 7.2 and 11.3, IJ will invoice the Client in advance for all costs, fees and disbursements of the Appointed Solicitor. The Client will also be responsible and pay (together with any applicable VAT) for all costs, fees and disbursements of the Appointed Solicitor as a result of direct instructions given to the Appointed Solicitor other than by IJ.
5.4. The Client hereby agrees to lend its name to any proceedings which IJ instructs the Appointed Solicitor to bring with the Client’s written consent in relation to any of the Debts, and the Client will give all such further assistance as may be necessary to enable IJ to pursue such proceedings and enforce any decree obtained.
 
6. OBLIGATIONS OF THE CLIENT
6.1. The Client shall:
6.1.1. provide to IJ all necessary documents to prove the existence of the Debts to be collected;
6.1.2. notify IJ within 24 hours of any receipt of any payment or part payment of a Debt or of any agreement on the part of the Client with a Debtor relating to a Debt;
6.1.3. serve all notices, warnings and demands required by law to be served upon a Debtor and notify IJ of any instance where the Client has not done so; and
6.1.4. respond to requests and enquiries from IJ within 7 days of receipt of the same.
 
7. CHARGES & FEES
7.1. The Client will pay to IJ an annual membership fee commencing on the date of this Agreement and on each subsequent annual anniversary of this Agreement, at the rate set out in the IJ Tariff as varied from time to time in accordance with clause 7.8. The annual membership fee will be invoiced by IJ quarterly in advance and the client will pay the invoice within 30 days of the date of IJ’s invoice.
7.2. In consideration of the Services provided by IJ the Client will pay IJ the Collection Charges as specified or referred to in the IJ Pricing Tariff for the relevant Debt. Collection Charges are payable on a weekly basis and IJ will raise an invoice weekly in respect of its Collection Charges arising in the previous week and such invoices shall be paid within 30 days of the date of IJ’s invoice.
7.3. The Collection Charges for litigation collections will be payable on a monthly basis in respect of charges arising in the previous month unless these Collection Charges amount to less than £100.00 (excluding VAT) in which case IJ may defer its invoice until the aggregate outstanding Collection Charges amount to £100.00. Where the Services include litigation collections IJ shall invoice the Client for any solicitor’s costs, fees and disbursements together with any applicable VAT on such solicitors’ costs, fees and disbursements. Such solicitors’ costs, fees and disbursements, and VAT thereon, are in addition to the collection charges.
7.4. Any Collection Charges and other sums due to IJ under this Agreement are exclusive of VAT which if applicable will be charged in addition at the rate prescribed by law from time to time.
7.5. IJ will be entitled to charge the Client interest at the annual rate of 4% above The Royal Bank of Scotland base rate from time to time calculated on a daily basis on overdue accounts from the date of invoice until payment.
7.6. IJ shall not be obliged to provide the Services in respect of any Debt whilst any payment due (or any part thereof) remains outstanding from the Client for that or any other Debt.
7.7. The Client agrees that IJ may deduct or set-off from monies received by IJ as payment of the Debts any sums owed to IJ by the Client, whether or not such sums are owed under this Agreement or under any other agreement between IJ and the Client.
7.8. IJ shall be entitled by notice in writing to the Client to amend the Collection Charges set out or referred to in the IJ Pricing Tariff from time to time in which case, the Client shall have the option, by notice in writing to IJ, of terminating the Agreement no later than the date on which the Collection Charges are due to be increased, subject to payment of all sums outstanding to IJ.
7.9. Without prejudice to any other of IJ’s rights, failure by the Client to make any payment due on its due date for payment will entitle IJ at its sole discretion summarily, by notice in writing to the Client, to terminate this Agreement, or any other agreement with the Client, either in whole or in part, and/or to require all outstanding Collection Charges to be due and payable in each case without incurring any liability to the Client for any loss caused by such termination.
7.10. Any work undertaken by IJ other than the provision of the Services shall be outside the scope of this Agreement and may be provided by IJ on and subject to terms to be agreed between IJ and the Client.
 
8. STATUTORY COMPLIANCE
8.1. Each party agrees that it will comply at all times with any statutory and regulatory provisions which are applicable to debt collection which it is required by law to comply with.