Collections Policy
This Policy supplements Terms of Service § 11. It explains exactly what happens when an invoice goes unpaid, when a chargeback is filed in violation of Terms § 8, or when a deposit is reversed without following the dispute procedure. We disclose this in advance because honest expectations protect everyone.
1. Account aging & the collections clock
| Days past due | Status | Action |
|---|---|---|
| 0–10 | Current | Auto-reminder + invoice resend. |
| 11–20 | Late | 1.5% per month interest begins; $75 reinstatement fee accrues. |
| 21–30 | Delinquent | Service paused; engagement director outreach. |
| 31–60 | Pre-collections | Final demand letter; account flagged for external referral. |
| 60+ | Collections | Referred to licensed third-party agency or counsel; credit-bureau reporting; UCC-1 lien evaluation; litigation evaluated. |
2. Third-party collections agencies
DefendMyRep engages licensed commercial collections agencies operating under the federal Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. § 1692 et seq.) and applicable state analogues. Our current panel includes commercial agencies licensed in all 50 US states. Agencies are bonded, audited annually, and prohibited from harassment, false statements, or unauthorized disclosure.
- Agency commission (typically 25%–50% of the recovered amount) is added to the balance owed by Client per Terms § 11.
- Client may at any time pay the full balance directly to DefendMyRep to halt agency action — agency commission already accrued remains payable.
- Once referred, Client should direct all communications to the assigned agency. DefendMyRep will not negotiate around the agency relationship.
3. Credit-bureau reporting
Accounts 60+ days delinquent are reported to one or more of:
- Dun & Bradstreet — PAYDEX impact.
- Experian Business — Intelliscore Plus impact.
- Equifax Business — Payment Index impact.
- Where individually-guaranteed, applicable personal credit bureaus per the executed personal guaranty.
Reporting is factual: account balance, days past due, payment history, and resolution status. Disputed reporting is corrected upon documented payment or judgment-in-favor.
4. UCC-1 liens & judgments
Where state law permits and the Engagement Letter authorizes, DefendMyRep may file a UCC-1 financing statement against Client's business assets to perfect a security interest in unpaid receivables. DefendMyRep also reserves the right to seek judgment in any court of competent jurisdiction, to record that judgment in any county where Client maintains assets, and to pursue post-judgment remedies including bank levy, wage garnishment (where individually-guaranteed), and asset seizure.
5. Attorneys' fees & costs are Client's responsibility
Per Terms § 11, Client is responsible for all reasonable attorneys' fees and costs incurred in collection, whether or not litigation is filed. This includes: drafting demands, agency fees, mediator fees, arbitrator fees, process-server fees, court filing fees, deposition costs, expert-witness fees, and post-judgment enforcement costs. Fee schedules are documented at billing rates prevailing in New York County, New York at the time of incurrence.
6. Chargebacks & ACH reversals
A chargeback or ACH reversal in violation of Terms § 8 is treated as a delinquency from day one of the dispute, plus a § 10 breach. Specifically:
- The disputed amount is restored to the account balance.
- A $250 administrative fee per disputed transaction is added.
- All bank, card-network, and gateway penalty fees actually incurred are passed through.
- Interest accrues from the original invoice date at 1.5% per month.
- The account is immediately flagged for the pre-collections / collections track.
- DefendMyRep furnishes documentary evidence (Engagement Letter, delivery logs, communications, IP/device records, audit timestamps) to the card network and acquiring bank.
- Card networks routinely rule in favor of merchants on documented bespoke-service engagements. Client further owes the resulting representment costs.
7. Settlement & payment plans
DefendMyRep may, in its sole discretion, accept a structured payment plan or partial settlement. Any settlement must be in writing and signed; oral agreements do not modify the balance. Acceptance of partial payment does not waive any remaining balance, fee, or remedy under Terms § 11.
8. Personal guaranty (where applicable)
Where the Engagement Letter includes a personal guaranty by an officer, director, or principal of Client, that guarantor is personally liable for the full balance, interest, fees, and collection costs. Guarantor remedies follow the same procedure described in §§ 1–7 above and may include personal-credit-bureau reporting and personal-asset remedies as permitted by law.
9. FDCPA and state-law rights
If you are an individual consumer (rare for business engagements, but disclosed for completeness), you have rights under the federal FDCPA and applicable state statutes, including the right to validate the debt within thirty (30) days of first written notice and the right to cease-and-desist communications. Exercising these rights does not eliminate the underlying obligation.
10. How to resolve a balance
- Best: follow the dispute procedure in Terms § 9 before any payment becomes late.
- Pay the outstanding balance in full at billing@defendmyrep.com with subject "Balance Payoff — [Invoice #]".
- Propose a written, signed payment plan to the engagement director.
- If already referred to an agency, communicate exclusively with the assigned agency representative.
11. Contact
Billing & collections: billing@defendmyrep.com. Legal: legal@defendmyrep.com.