Terms and conditions for a credit control service

A credit control service chases other people's debts in the client's name, on information the client provides, for a fee that depends on what comes in. The terms have to define the service as an agent's, confine it to the debts it may lawfully pursue, put the accuracy of the ledger on the client, deal with disputes and direct payments, and stop short of the litigation that needs a solicitor. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Outsourced credit control, accounts receivable and business-to-business debt recovery services in England and Wales working for business clients on a retained, commission or per-account basis. These are business-client terms.

What matters in credit control terms

Acting as the client's agent

The terms should say that the service contacts the client's customers as the client's agent, in the client's name or its own as agreed, that it has authority to agree payment arrangements within stated limits and no authority to compromise a debt without the client's approval, and that payments are made to the client's own account rather than collected by the service. Money handled on behalf of others brings obligations the terms should keep out of the model.

Business debts only and the limits of the service

Debt collecting under consumer credit agreements is a regulated activity under article 39F of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 needing FCA authorisation, and the terms should confine the service to business-to-business invoices unless you hold it. The terms should also say that the service sends letters, makes calls and negotiates; issuing court proceedings, enforcement and legal advice are excluded and are referred to solicitors at the client's choice.

The client's ledger, disputes and information

The service can only chase what it is told about. The terms should make the client responsible for the accuracy of the ledger, for telling the service about disputes, credits, payment plans and direct payments promptly, and for supplying invoices and contracts on request. A debt the client knew was disputed is returned to the client, and the terms should say that the fee for work done on it is still payable.

Fees, commission and what counts as recovered

The terms should state the fee basis (retainer, per account, commission on sums recovered, or a mix), define a recovery to include payments made directly to the client and credits given after the service's involvement, say when commission is invoiced, and provide for interest and fixed compensation on the client's own late payment under the Late Payment of Commercial Debts (Interest) Act 1998. Statutory interest and compensation recovered from the client's debtors belong to the client unless the terms say otherwise.

Conduct, data, liability and termination

The service should commit to contacting debtors in a professional manner and in line with the law, including section 40 of the Administration of Justice Act 1970, which makes it an offence to harass a debtor with demands calculated to cause alarm or distress, and the terms should require the client to do the same and not to undermine arrangements the service has made. Debtor contact details are personal data under the UK GDPR and the Data Protection Act 2018 where the debtor is an individual or a sole trader, and the terms should say that the service processes them on the client's instructions. Liability should be capped at the fees paid over a stated period, with consequential loss excluded, tested for reasonableness under the Unfair Contract Terms Act 1977. Either side should be able to end the arrangement on notice, with commission due on recoveries in progress.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Email me at geoffrey@caesar.co.uk with what you need and any documents, and I will confirm the scope and the fee in writing, usually the same working day.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

A debtor paid the client directly after our letters. Do we get commission?

If the terms define a recovery to include direct payments made after the service's involvement, yes. Without that definition the client will say the payment had nothing to do with you.

The client wants us to chase a sole trader who bought on credit as an individual. Can we?

If the debt arises from a business supply on invoice, the service can pursue it as a business debt. Where a debt arises from a consumer credit agreement, other regulation applies and the terms should keep such debts out of scope unless you are authorised.

The debtor disputes the invoice. What do we do?

The terms should provide that disputed debts are referred back to the client with the information gathered, that the client decides how to proceed, and that fees for work done remain payable. Chasing a disputed debt as if it were undisputed is the most common cause of complaints.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms and conditions for a bookkeeping business

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.