Paragon Credit Management

GET STARTED

Terms and Conditions

Terms & Conditions for Debt Submission

By submitting this form, you confirm and agree to the following on behalf of yourself and the creditor (together, “the Creditor”). These terms apply to every debt submitted to Paragon Credit Management (“PCM”) and form part of PCM’s terms of business.

1. Authority to Instruct

You warrant that you are authorised to bind the Creditor and to instruct PCM, and that PCM is authorised to act on the Creditor’s behalf in the recovery of the debt(s) submitted, including making contact with the debtor, negotiating, and agreeing payment arrangements within any limits you set in writing.

2. Accuracy of Information

You warrant that all information provided is accurate, complete and not misleading. You agree to notify PCM promptly of any change or correction. You acknowledge that PCM will rely on this information when taking recovery action.

3. Validity of the Debt

You warrant that:

  • The debt is valid, due and payable, and the amount stated is correct.
  • No other agency, solicitor or third party is instructed to collect the same debt, unless disclosed in writing.
  • The debt has not been assigned, sold or charged to another party, unless disclosed in writing.
  • You will not instruct another party to collect the same debt while PCM is instructed.

4. Limitation

You warrant that the debt(s) are not statute-barred under the Limitation Act 1980, that you hold no information suggesting limitation may be an issue, and that legal action remains permissible should it be required. You must tell PCM immediately if you become aware of any limitation concern.

5. Disputes and Complaints

You warrant that all known disputes, complaints, counterclaims, set-offs or challenges raised by the debtor have been fully disclosed. If a debt is disputed, PCM may suspend or cease action until you provide supporting evidence, and may charge for work already carried out (see clause 11). You must notify PCM immediately of any dispute arising after submission.

6. Insolvency Status

You warrant that, to the best of your knowledge, the debtor is not insolvent, dissolved, in liquidation, administration, bankruptcy or subject to any insolvency proceedings, or any arrangement with creditors (e.g. CVA, IVA, moratorium or restructuring plan), unless disclosed in the submission. You must notify PCM immediately of any such event. PCM may cease action where a formal insolvency process applies.

7. Supporting Documentation

You agree to provide all relevant supporting documents on request, including invoices, statements, contracts, terms of trade, delivery notes, proof of delivery and correspondence, within a reasonable time (normally 7 days). PCM may suspend or cease action where documentation is not provided and is not liable for any resulting loss, delay or reduced recovery.

8. Data Protection

You confirm that:

  • You have a lawful basis to share the debtor’s personal and business data with PCM.
  • Any required privacy notices have been given to the debtor.
  • All data has been collected and shared in compliance with UK GDPR and the Data Protection Act 2018.

PCM will process data solely for the purpose of debt recovery and in accordance with its Privacy Policy. Each party will comply with its obligations under data protection law and will notify the other without undue delay of any personal data breach affecting data shared under these terms.

9. Use of Third Parties

You authorise PCM to appoint and share relevant information with tracing agents, solicitors, courts, enforcement agents, commercial credit reference agencies, and IT and secure data-processing providers, only where necessary for the recovery of the debt. PCM remains responsible for the appointment of its own sub-contractors, but is not liable for the acts or omissions of solicitors, courts or enforcement agents instructed on your behalf.

10. Recovery Approach

PCM will undertake pre-legal recovery activity as standard and will decide, acting reasonably, the most appropriate methods. PCM will not commence legal action without your explicit written approval. PCM does not guarantee recovery of any debt, or any particular outcome or timescale.

11. Fees and Charges

a) You agree to PCM’s standard commission of 15% of all sums recovered, in accordance with PCM’s terms of business, unless otherwise agreed in writing.

b) Commission is calculated on the full amount recovered, including any part payments, settlements, and any interest, costs or charges recovered.

c) If legal action or enforcement is required, court fees, solicitor fees and enforcement fees are payable by you and recovered from the debtor where possible. PCM will agree these with you in writing before any step is taken. Recovery of these costs from the debtor is not guaranteed.

d) Invoices are payable within 14 days of issue. PCM may charge interest on overdue sums under the Late Payment of Commercial Debts (Interest) Act 1998 and may deduct commission from monies it holds on your behalf.

12. Direct Payments and Commission

a) If, at any time after submission, the debtor (or anyone on their behalf) pays you, or the Creditor, directly, in full or in part, or you agree a settlement, set-off, credit note or any other arrangement with the debtor, PCM’s commission is still payable on the full amount paid or credited as if PCM had collected it.

b) You must notify PCM in writing within 3 working days of receiving any direct payment or making any such arrangement, and must pay the commission due within 14 days of receipt of PCM’s invoice.

c) This clause applies to any debt submitted, whether payment is received during PCM’s instruction or after the instruction ends or is withdrawn, where payment results from or follows PCM’s recovery activity, for a period of 3 months from the date of last PCM contact with the debtor.

d) You must not instruct the debtor to pay anyone other than PCM (or as PCM directs) while the debt is placed with PCM, and must redirect any contact from the debtor to PCM.

e) PCM may require access to your relevant records to verify payments received and you agree to provide them on request.

13. Exclusivity and Non-Interference

While a debt is placed with PCM, you agree that PCM acts as your sole agent for that debt. You will not contact the debtor about the debt, withdraw it, compromise it, or accept payment without notifying PCM first, except as required by law. If you withdraw or cancel an instruction after PCM has begun work, PCM’s commission applies to any sums later recovered from that debtor (see clause 12) and PCM may charge a reasonable fee for work done, including any costs incurred.

14. Indemnity

You agree to indemnify and keep PCM indemnified against any loss, claim, liability, cost or expense (including reasonable legal fees) arising from:

  • Incorrect, misleading or incomplete information supplied.
  • Submission of unenforceable or statute-barred debts.
  • Failure to disclose disputes, counterclaims or insolvency.
  • Breach of data protection obligations by you.
  • A claim by the debtor or a third party arising from PCM acting on your instructions or in reliance on the information you provided.

15. Limitation of Liability

PCM will provide its services with reasonable skill and care. PCM is not liable for indirect or consequential loss, loss of profit, or loss arising from the debtor’s insolvency or non-payment. Subject to the above, PCM’s total liability is limited to the fees paid to PCM in respect of the relevant debt. Nothing in these terms limits liability for death or personal injury caused by negligence, fraud, or anything which cannot lawfully be excluded.

16. Termination

Either party may end the instruction in writing at any time. Termination does not affect accrued rights, and clauses 11 to 15 continue to apply. Commission remains payable on any sums recovered as set out in clause 12.

17. Communication

You consent to PCM contacting you by email or telephone about the submitted debt(s) and related matters. You agree to respond to PCM’s reasonable requests for information promptly.

18. General

These terms, together with PCM’s terms of business, form the entire agreement for the debts submitted and prevail over any conflicting terms you provide. PCM may update its terms on notice, but changes will not affect debts already submitted unless you agree. These terms are governed by the laws of England and Wales and the courts of England and Wales have exclusive jurisdiction.

19. Acceptance

By instructing PCM, you confirm that you have read, understood and agree to these Terms & Conditions, and that you have authority to accept them on behalf of the Creditor.