Terms & Conditions

1. Definitions and scope

"Modern Debt" means Modern Debt International, registered in Belgium under company number 0797.634.265. "Client" means the business that assigns one or more claims to Modern Debt. "Debtor" means the party that owes the claim. "Case" means a claim assigned to Modern Debt for collection.

These conditions apply to every assignment, offer and agreement between Modern Debt and the client, including cases submitted through our website or the client portal. The client's own general conditions do not apply. Deviations are only valid when agreed in writing. Where a separate written agreement with the client sets other terms, such as a different commission rate, that agreement prevails.

2. How a case starts

Submitting a case is an offer by the client to assign the claim to Modern Debt. The agreement starts when Modern Debt confirms acceptance of the case by email or opens it in the client portal. Modern Debt first verifies the client and the claim and may refuse a case without giving a reason, for example when the claim is disputed, time-barred or insufficiently documented.

3. Commission and costs

• Modern Debt works on a no cure, no pay basis: the client pays commission only on amounts actually collected. If nothing is collected, the client owes Modern Debt nothing for the amicable collection.
• The commission rate is the rate shown when the case was submitted or the rate agreed in writing. It is calculated on everything the debtor pays after the case is assigned, whether paid to Modern Debt or directly to the client, including settlements, set-offs, credit notes and returned goods agreed after assignment.
• These standard rates apply only to clients without a written agreement with Modern Debt. A client can always agree other rates with Modern Debt, including flat rates. The standard rates for one-off cases are: 25% below €1,000, 19.5% below €2,500, 15% below €10,000, 13% below €25,000, 8.5% below €100,000; from €100,000 on request. For a debt older than 1 year the rate is 125%, and older than 2 years the rate is 150% of the base rate. The age counts from the date of the oldest unpaid invoice.
• Payments made on the day of assignment or up to 5 days before it are not commissioned. A payment made earlier, but reported to Modern Debt only after Modern Debt has sent its first letter, carries a commission of 5%.
• Interest charges that Modern Debt recovers from the debtor on top of the principal, where the law or the client's contract allows this, are remitted to the client. Any other surcharge the debtor pays directly to Modern Debt is retained by Modern Debt.
• If a case is escalated to a local partner agency in the debtor's country, a higher commission rate may apply. Modern Debt will never apply a higher rate without the client's prior approval.
• Legal proceedings, local lawyers and bailiffs are only engaged with the client's prior written approval and on the basis of a separate cost estimate.
• Amounts are exclusive of VAT where VAT applies.

4. Single demand letter

Instead of a full collection, the client can order a single demand letter through the “Submit new case” form.

• The fee is fixed and depends on where the debtor is located: €79 for a debtor in the European Union, €124 for a debtor in the United States and €149 for a debtor anywhere else.
• The fee is paid upfront, online, and is due regardless of the outcome.
• Modern Debt sends the debtor one formal demand letter on its letterhead, in the debtor's language, after verifying the details and invoices provided.
• Any further step, such as reminders, calls or a full collection, is only taken on a separate assignment under these conditions.
• The client notifies Modern Debt of any payment the debtor makes after the letter, as described in article 6.

5. Payments collected

Amounts that Modern Debt collects are paid out to the client, less commission and any costs agreed, within 30 days after the end of the month in which they were received. Where the debtor pays the client directly, Modern Debt invoices its commission. Commission invoices are payable within 14 days. Modern Debt may set off its commission against amounts it holds for the client.

6. The client's obligations

• The client warrants that each claim is due, undisputed to its knowledge and correctly documented, and provides invoices, contracts and correspondence on request.
• The client notifies Modern Debt of any payment within 7 days after the payment date at the latest, by registering it in the client portal or by email to info@modern-debt.com. This also applies to any partial payment, payment arrangement, credit note or dispute concerning a case, and to payments the client receives directly from the debtor.
• Once a case is assigned, the client leaves contact with the debtor about the claim to Modern Debt. If the debtor contacts the client, the client refers the debtor to Modern Debt and informs Modern Debt.
• The client does not agree arrangements, discounts or settlements with the debtor without consulting Modern Debt. Commission remains due on what is agreed.
• The client keeps its contact details and bank details in the client portal up to date.

7. What you can expect from Modern Debt

• We verify every case and confirm by email when it is registered and ready to go.
• We contact the debtor in their own language, by up to 5 consecutive letters, by email, fax and postal service, and in line with the law and good practice within the debtor's country.
• We treat your debtors professionally and respectfully, protecting your business relationship.
• Every step, letter and payment is visible in the client portal, and we answer your questions about a case within 24 hours, except weekends.
• We advise you when a case can only be resolved through legal action, and what that would cost.
• We do our best to collect every claim, but cannot guarantee a result. Our commitment is an obligation of means and action, not of result.

8. Client portal

Clients get access to the client portal to submit cases, follow their progress, register payments and download reports and commission invoices. Login details are personal and must be kept confidential; the client is responsible for all use of its accounts and informs Modern Debt at once of any suspected misuse. Modern Debt aims to keep the portal available at all times but does not guarantee uninterrupted access, and may change or suspend it for maintenance or security. Information in the portal is provided with care; in case of doubt, Modern Debt's own records prevail.

9. Withdrawing a case

The client may withdraw a case at any time in writing. If a case is withdrawn after Modern Debt has started work, or the client makes collection impossible, the commission is due on the full outstanding principal, unless agreed otherwise in writing. Commission remains due on payments received after withdrawal that result from Modern Debt's actions.

10. Closing a case

Modern Debt closes a case when it is paid in full, when it is withdrawn, or when Modern Debt considers further amicable collection pointless, for example because the debtor is insolvent or cannot be found. Modern Debt informs the client and explains the options, such as legal action.

11. Personal data

For the cases assigned to it, Modern Debt processes personal data in accordance with the GDPR and its privacy policy. The client confirms that it may lawfully share the debtor's data with Modern Debt for collection.

12. Confidentiality

Both parties keep confidential all information about each other's business and about the cases that they receive under the agreement, except where disclosure is needed to collect a claim or is required by law.

13. Liability

Modern Debt is liable only for damage caused by its intent or gross negligence. Its liability is limited to the commission it received on the case concerned in the 12 months before the damage occurred. Modern Debt is not liable for indirect damage, loss of profit, or for the acts of lawyers, bailiffs and partner agencies it engages with care, nor for delays caused by circumstances beyond its control.

14. Changes

Modern Debt may change these conditions. Changes are announced on this page and in the client portal and apply to cases assigned after the change.

15. Applicable law and disputes

Belgian law applies. Disputes are submitted to the competent courts of the judicial district of Modern Debt's registered office, unless mandatory law provides otherwise.