Debt Collection Provision

If you wish to make the customer/debtor liable for collection costs, then they must be made aware of this before they sign up to your services. 

It is best practice to include in your Terms of Trade your intention to refer overdue accounts to your debt collection agency and the right to add all associated costs involved in the recovery of the overdue account, if they haven’t paid within a certain period. This done by including a debt collection provision within your Terms of Trade with your customer/debtor and allows the ability to add legal and collection costs to the original overdue account. 

If you do not have a debt collection provision within your Terms of Trade then you cannot legally pass on any legal and collection costs incurred during the recovery of the overdue account to the customer/debtor.