Terms & Conditions of Service: Castle Northwich Recovery

Effective Date: April 2026

1. The Agreement

These Terms and Conditions apply to all debt recovery services provided by Castle Northwich Recovery ("CNR") to the Client. By formally instructing CNR to recover a commercial debt, the Client confirms their full acceptance of these terms. This agreement supersedes any previous verbal or written arrangements.

2. The "Zero-Cost" Recovery Model

No Commission: CNR does not charge the Client a percentage-based commission or "success fee" on the principal sum of the debt recovered.
Recovery of Costs: In accordance with the Late Payment of Commercial Debts (Interest) Act 1998, CNR will pursue the debtor for statutory interest and fixed compensation.
Remittance: CNR will remit 100% of the principal invoice amount to the Client upon successful recovery. CNR retains all statutory interest and compensation collected from the debtor as its sole fee for the services provided.

3. Statutory Interest & Compensation

The 1998 Act: CNR will seek to recover statutory interest (currently 8% above the Bank of England base rate) and fixed compensation (between £40 and £100 per invoice) from the debtor.
Reasonable Costs: CNR reserves the right to claim "reasonable costs" for recovery from the debtor where the fixed compensation does not cover the work involved, as permitted under the 1998 Act.

4. Legal Escalation & Disbursements

Pre-Legal Stage: Includes all formal demands, Mediation-Led communications, and structured dialogue aimed at avoiding litigation.
Litigation: If a debt remains unpaid following pre-legal efforts, CNR may recommend legal proceedings.
Third-Party Costs: Court filing fees, process server fees, and solicitor costs (disbursements) are not covered by the "Zero-Cost" model and must be settled by the Client in advance of any filing.

5. Client Obligations & Direct Payments

Exclusive Instruction: The Client must not instruct any other agency or internal staff to pursue the debt while CNR is actively engaged.
Cease Communication: Upon instruction, the Client agrees to cease all direct negotiation with the debtor to maintain a clear chain of command.
Payment Rejection: If the debtor attempts to pay the Client directly, the Client agrees to reject the payment and direct the debtor to CNR.
Direct Settlement Liability: Should the Client accept a direct payment from the debtor, the Client remains liable to CNR for the value of the statutory compensation and interest that would have been recovered.

6. Data Protection & Confidentiality

Both parties shall comply with the UK GDPR and the Data Protection Act 2018. CNR is an ICO Registered firm. Our handling of personal and corporate data is governed by our published Privacy Policy.

7. Termination of Instruction

Either party may terminate this agreement with 14 days written notice. If the Client withdraws an instruction where CNR has already secured a structured repayment plan or an admission of debt, CNR reserves the right to invoice the Client for the statutory costs that would have been due upon completion.

8. Governing Law

This agreement and any dispute arising from it shall be governed by and construed in accordance with the laws of England and Wales, subject to the exclusive jurisdiction of the English courts.