PaySmart's Debt Collection Service
If you have a question regarding Debt Collection, please refer to our Frequently Asked Questions section further down on the page for more information. Alternatively you may contact us by completing the below form to discuss any queries.
Raise a Debt Collection Query below:
How the new debt collection system works:
- Any customer who appears on your inactive report, and who has not been approved for cancellation by you, will become part of the new debt collection process.
- Each fortnight you’ll receive an email from PaySmart with a list of customers who comply for debt collection along with the amount to be pursued.
- You’ll be given a two-week opportunity to reply to us to remove a specific customer who is going to be included in the debt collection system.
- If we don’t hear from you within this period all customers will automatically be included in the collection process.
- The amount pursued will be the debit owing when the customer was achieved with a fortnight’s notice, in line with your terms and conditions and debt collection fees.
Frequently Asked Questions
Looking for more information regarding our Debt Collection System?
Please read the below Frequently Asked Questions for more information. If you still have questions, not answered below, please don’t hesitate to fill out the form above and our friendly Client Account Managers will come back to you shortly.
Any customer who appears on your inactive report, and who has not been approved for cancellation by you, will become part of the new debt collection process.
At the beginning of each month, you will receive an email from PaySmart with a list of customers who comply for debt collection along with the amount to be pursued.
You will be given a two-week opportunity to reply to us to remove a specific customer who is going to be included in the debt collection system, or to edit the Client Amount of debt. This could be to include a cancellation fee, or to reduce the amount if required.
If we do not hear from you within this period all, customers will automatically be sent to our Third Party Debt Recovery Team, ARMA.
All fees, included PaySmart’s Debt Collection Fee and ARMA’s 22% commission rate will be allocated on top of the customer’s debt, so this process will be at no cost to you! Be advised, there is the potential for a cost to fall to you if the customer is removed from ARMA due to you taking the payment for their debt, in which case, ARMA will charge you their commission rate.
ARMA the debt recovery agency will work hard to get in touch with your inactive customers sent through to them to chase up their fees owed to you. After the customer has made a payment to ARMA, ARMA then send the funds onto PaySmart every Tuesday, and PaySmart allocates the funds to you to receive on your next settlement.
Simply submit a query using the above form and our friendly team will provide you with the latest status update.
We can send any one to debt collection for you! This will happen outside of the monthly auto-debt collection process, and you will need to advise us of the amount to send the customer for.
We require the customer to be overdue a minimum of $100 (inclusive of the amount owed to you, and PaySmart’s dishonour and debt collection fees) to be sent to debt collection. Anything lower than $100 we can review on a case by case basis upon your request.
Yes you can! You will be given a two-week opportunity to reply to our email with your inactive customer report to remove specific customers from being sent to debt collection. If we do not hear from you within this two week period, all customers listed in the report will be sent off as is.
A customer will become inactive in the PaySmart system after three failed payments in a row. Once the customer is marked as inactive in the PaySmart system they will be eligible to be sent for debt collection.
*This may be different depending on your business and agreed arrangements with PaySmart for when your customers are made inactive. If you’d like to check when your customers are made inactive, please fill in the above Query form and our friendly team will happily assist you.
If a customer who has been sent to ARMA approaches you wishing to fix up their overdue payments, please instruct them they will need to make their payment arrangements with ARMA. If the customer insists on fixing their overdue fees with you, please contact PaySmart and we will liaise with ARMA for you to determine how they would like to proceed. We will then advise you if ARMA give approval for the debtor to resolve the debt with you, or what the course of action is they would like to take. If ARMA give approval for the debtor to resolve the debt with you, PaySmart will send you approval in writing. As part of the Terms and Conditions (which you can download for your reference at the bottom of this page) you have agreed once a debtor has been sent to ARMA, you will not make any financial arrangement with the debtor (customer) to resolve the debt, without the approval in writing from PaySmart.
Yes you may. You simply need to email your Client Account Manager or fill in the Debt Collection Query form and request to be removed from our automated Debt Collection system. Once you have been removed from the system, you may still request on a case by case basis to send eligible customers to debt collection outside of the automated system. You may also opt back in for the automated Debt Collection system at any time.
Our PaySmart Debt Recovery Team run a report, which supplies them a list of customers that are applicable for debt collection. They then reference whether your customer’s contract is until further notice, a minimum term, a fixed term, or contract value agreement. In the case of minimum term, fixed term and contract value, they ascertain the remaining value of the contract, and insert this value in your debt recovery report. If the agreement is until further notice, they insert the value of the customer’s arrears. Depending on your cancellation policy, they may also add a one notice period amount, which is one extra debit on top.
We ask you review these amounts carefully during your two-week review period, as it is likely you are aware of other conditions that would influence the debt amount.
Your monthly debt recovery report (as of August 2018) will be broken down as follows:
Account Name: This is the name of your club/branch the customer belongs to.
Member ID: This is PaySmart’s ID reference for the customer. Please quote this while making changes to the customer.
Customer: Details the customer’s name.
Archived: The date the customer archived on PaySmart’s system.
Reason: The reason the customer was archived, such as excessive defaults, bank account closed, debt authority cancelled, etc.
Contract Type: This details what type of agreement the customer has with you; UFN – Until Further Notice (includes minimum term agreements), FTA – Fixed Term Agreement, CV – Contract Value (a contracted amount).
Overdue vs Balance: This details whether the debt is sourced from the arrears or the remaining contract balance for the customer.
Client Amount: This is the amount owed to you by the customer.
PS Dishonour Fees: The amount of dishonour fees the customer owes PaySmart.
PS Debt Recovery Fee: as stated, this is PaySmart’s Debt Recovery fee.
TOTAL AMOUNT: Sums up the aforementioned debt amounts, and details the customer’s total debt, excluding ARMA’s commission rate.