Clear Path
Terms and Conditions of Business
Definitions and Interpretation
1.1. "Client" means the individual, sole trader, partnership, company, organisation or other legal entity instructing Clear Path to undertake recovery services.
1.2. "Debtor" means any individual, company or other legal entity alleged to owe money, property or another recoverable obligation to the Client.
1.3. "Debt" means any outstanding monetary obligation, including the principal amount, contractual or statutory interest, applicable compensation and other legally recoverable amounts identified in the Instruction.
1.4. "Instruction" means an individual case, debt, judgment, tenancy arrears claim or asset recovery matter submitted by the Client and accepted by Clear Path.
1.5. "Recovery" means any monetary or non-monetary value received, returned, transferred, credited, set off, retained or lawfully applied in full or partial satisfaction of the Instruction. This includes direct payments, negotiated settlements, returned assets, tenancy deposit deductions and other qualifying forms of settlement.
1.6. "Commission" means the fee payable to Clear Path calculated at the agreed percentage of the qualifying Recovery.
1.7. "Settlement Offer" means a genuine and sufficiently definite proposal from the Debtor or their authorised representative to discharge or compromise the Debt, whether in full, in part or by instalments.
1.8. "Legal Escalation" means the referral of an Instruction to a solicitor, enforcement agent, insolvency practitioner or other authorised professional for further recovery action.
1.9. "Business Day" means Monday to Friday, excluding public holidays in England and Wales.
3.1. The Client shall provide accurate, complete and up-to-date information reasonably required to pursue the Instruction
3.2. This includes debtor identification, addresses, contact information, contracts, invoices, payment histories, correspondence, judgments, disputes and other supporting evidence.
3.3. The Client warrants that it has the legal authority to pursue the Debt or asset and to instruct Clear Path.
3.4. The Client shall promptly notify Clear Path of any material change affecting the Instruction, including:
- Payments received or credited.
- Settlement offers or repayment proposals.
- Disputes raised by the Debtor.
- Insolvency proceedings or legal action.
- Returned goods, equipment or other assets.
- Tenancy deposit releases or deductions.
- Changes to debtor details or the outstanding balance.
3.5. The Client must notify Clear Path in writing within five Business Days of becoming aware of any payment, settlement, asset recovery or other qualifying Recovery.
3.6. The Client shall provide reasonable supporting documentation upon request, including statements, payment confirmations and settlement correspondence.
3.7. The Client shall not knowingly conceal, redirect or misrepresent recoveries for the purpose of avoiding agreed commission.
Client Responsibilities and Information
5.1. The Client acknowledges that recovery may occur through payment directly to the Client, negotiation with the Debtor, settlement through another representative or other arrangements connected with the Instruction.
5.2. Any qualifying Recovery made directly to the Client during an active Instruction shall remain subject to the agreed commission.
5.3. The Client shall not deliberately circumvent Clear Path by withdrawing an Instruction, directing the Debtor to another payment recipient, transferring the case to another provider or entering into undisclosed arrangements for the purpose of avoiding commission properly payable under these Terms.
5.4. Where the Client enters into a settlement, payment arrangement, credit agreement, set-off or other arrangement relating to the listed Debt, the Client must promptly notify Clear Path.
5.5. Where the Client agrees to accept a reduced amount in full and final settlement, commission shall ordinarily be calculated on the qualifying amount actually recovered, rather than the original face value of the Debt.
5.6. Where a payment arrangement negotiated or materially facilitated by Clear Path continues after closure, commission shall remain payable on qualifying payments received under that arrangement in accordance with Section 9.
Direct Settlements, Payments and Circumvention
Recovery of Assets, Goods and Tenancy Deposits
6.1. Non-Monetary Recovery
For the purposes of these Terms, successful recovery shall not be limited to the receipt of money.
Where included within the agreed Instruction, Recovery may include the return, delivery, restoration or transfer of watches, jewellery, vehicles, equipment, machinery, stock, goods, property or other assets.
6.2. Commission on Returned Assets
Where Clear Path's recovery activities materially contribute to the return of an asset, commission shall be payable at the agreed rate on the qualifying recovery value.
Where the asset is returned in satisfaction of a monetary claim, the commissionable value shall ordinarily be the amount by which that claim is discharged or reduced.
Where the Instruction expressly concerns recovery of a specific asset, commission shall be calculated on the agreed asset value or valuation basis disclosed and accepted before work commences.
If no value has been agreed, the parties shall seek to agree a reasonable market valuation, taking account of the asset's condition and relevant evidence.
6.3. Recovery Without Enforcement
Commission shall remain payable where a qualifying asset recovery is achieved voluntarily, through negotiation, following legal correspondence or through another lawful recovery process.
The commencement or completion of formal court enforcement proceedings shall not be a prerequisite to commission where the agreed recovery objective has been successfully achieved.
6.4. Tenancy Deposits
Where the Client lists a tenancy arrears or property-related recovery case and expressly includes a tenancy deposit within the Instruction, any deposit amount lawfully recovered, released, retained or applied towards the listed Debt shall constitute a Recovery.
This includes qualifying amounts received through a tenancy deposit protection scheme, letting agent, deposit holder, agreed settlement or lawful adjudication.
6.5. Commission on Tenancy Deposits
Clear Path shall be entitled to its agreed commission, normally 15% plus VAT, on qualifying deposit amounts recovered or applied towards the listed Debt.
This shall apply whether the amount is received directly by the Client or through a third party, provided that the deposit was included in the Instruction and the charging basis was expressly agreed.
6.6. Deposit Restrictions
Commission shall not be payable on amounts returned to the tenant or not lawfully applied towards the listed Debt.
Nothing in these Terms permits the Client to retain a tenancy deposit unlawfully or overrides statutory tenancy deposit protections.
No duplicate commission shall be charged where a deposit deduction and subsequent payment relate to the same amount of Debt.
6.7. Negotiated Commercial Agreements and Brokerage Commission
6.7.1. Where the Client expressly instructs Clear Path Collections Ltd ("Clear Path") to identify, introduce, negotiate, facilitate or broker a commercial transaction, settlement, sale, purchase, disposal, transfer of assets or other financial agreement on the Client's behalf, such services shall fall within the scope of these Terms, subject to any separately agreed written instructions.
6.7.2. Where Clear Path successfully introduces a prospective purchaser, buyer, investor or other contracting party, or obtains, negotiates or materially facilitates an offer which results in a binding agreement between the Client and the relevant third party, Clear Path shall be entitled to commission of 15% plus VAT of the total agreed transaction value, unless a different commission rate has been expressly agreed in writing.
6.7.3. Commission shall become payable upon the successful completion of the transaction, including the receipt of the purchase price or other agreed consideration, whether payment is made directly to the Client, through a solicitor, agent, representative or another authorised third party.
6.7.4. Where the transaction is completed by instalments, staged payments or deferred consideration, commission shall become payable proportionately as the Client receives the agreed consideration, unless otherwise agreed in writing.
6.7.5. The Client shall not deliberately circumvent Clear Path by concluding a transaction directly with a party introduced by Clear Path, transferring negotiations to another intermediary or otherwise restructuring the transaction for the purpose of avoiding the agreed commission.
6.7.6. Where a transaction is completed within six (6) months following withdrawal, cancellation or termination of Clear Path's instruction, commission shall remain payable where the transaction results from an introduction, offer or negotiation materially facilitated by Clear Path during the instruction.
6.7.7. The Client shall notify Clear Path in writing within five (5) Business Days of entering into a binding agreement or completing a qualifying transaction and shall provide reasonable documentation confirming the agreed transaction value and completion.
6.7.8. Clear Path's commission shall be calculated on the agreed transaction value, excluding separately identified taxes, legal fees and third-party disbursements, unless otherwise expressly agreed in writing.
6.7.9. This provision shall apply only where the nature of the brokerage services, the commission rate, the basis of calculation and the circumstances in which commission becomes payable have been clearly disclosed to and accepted by the Client before the relevant brokerage services are undertaken. Any activities requiring statutory authorisation or regulatory compliance shall be undertaken only where Clear Path is legally entitled to provide them.
Withdrawal Following a Settlement Offer
7.1. Where Clear Path has obtained, negotiated or materially facilitated a genuine settlement offer from the Debtor, and the Client subsequently withdraws, cancels, transfers or terminates the Instruction in circumstances preventing Clear Path from progressing the proposed settlement, Clear Path reserves the right to charge a reduced commission of 5% of the value of the qualifying settlement offer, plus VAT.
7.2. This reduced commission may be charged notwithstanding that the settlement offer has not resulted in payment, provided that the offer was obtained or materially facilitated through Clear Path's recovery activities.
7.3. The reduced commission shall not automatically become payable merely because the Client rejects an offer, requests further negotiations or reasonably disputes its commercial suitability.
7.4. Clear Path shall consider the circumstances of the withdrawal, including the nature and value of the offer, the recovery work undertaken and whether the withdrawal prevented a genuine recovery opportunity from progressing.
7.5. The reduced commission shall not apply where withdrawal is reasonably attributable to Clear Path's material breach of contract or where the offer was not genuinely capable of acceptance or performance.
7.6. Where a settlement offer is payable by instalments, the fee shall be calculated by reference to the genuine value of the qualifying offer, taking account of any material conditions or contingencies.
7.7. Where the Client subsequently receives payment relating to the same settlement offer and standard collection commission becomes payable, any reduced commission already paid shall be credited against that commission.
Legal Escalation, Solicitors and Enforcement
8.1. Where Clear Path considers that in-house recovery is unlikely to achieve a satisfactory result, it may recommend legal proceedings, enforcement or other appropriate escalation.
8.2. No additional legal proceedings or third-party expenditure shall be authorised without the Client's prior approval of the relevant scope and costs.
8.3. Where an Instruction is referred or transferred by Clear Path to a solicitor, enforcement agent, insolvency practitioner or other appointed professional, the referral shall not automatically terminate Clear Path's Instruction.
8.4. Clear Path shall remain entitled to its agreed commission, normally 15% plus VAT, on all qualifying amounts successfully recovered through the referred Instruction.
8.5. Commission shall remain payable whether the recovery is achieved by negotiation, settlement, court proceedings, judgment, enforcement, insolvency action or another lawful recovery method.
8.6. Commission shall remain payable whether the funds are received by the Client, solicitor, enforcement agent, Clear Path or another authorised recipient.
8.7. Clear Path's commission shall be separate from approved solicitor fees, court fees, enforcement costs and other agreed disbursements, subject to the commission calculation provisions in Section 4.
8.8. Where the Client appoints a different solicitor or professional after referral, Clear Path's accrued rights and applicable continuing commission rights shall remain unaffected.
8.9. The Client shall promptly notify Clear Path of any recovery made through an appointed professional and provide reasonable confirmation of the amounts received.
8.10. Commission shall remain payable on qualifying partial recoveries and payments received under settlements or repayment arrangements arising from the referred Instruction.
8.11. Where the Client terminates the referred professional's instruction, any continuing commission entitlement shall be determined by the terms governing closure, settlement and post-termination recovery. Referral alone shall not create an unlimited entitlement to commission on unrelated future recoveries.
Closure, Cancellation and Six-Month Commission Protection
9.1. Either party may terminate the ongoing business relationship by providing 30 days' written notice, subject to any agreed case-specific arrangements and applicable statutory rights.
9.2. An individual Instruction may be withdrawn or closed earlier by written agreement or notice, subject to fees properly accrued and any applicable provisions of these Terms.
9.3. Closure, cancellation, suspension, withdrawal or transfer of an Instruction shall not extinguish commission, charges or approved costs already accrued.
9.4. Where Clear Path has undertaken substantive recovery activity, the Client shall remain liable for the agreed commission on qualifying Recoveries made within six months following closure, where the recovery results from or is materially connected with Clear Path's work.
9.5. This provision includes qualifying recoveries received directly by the Client or through another debt collection agency, solicitor, enforcement agent or representative.
9.6. The Client must notify Clear Path in writing within five Business Days of any such recovery and provide reasonable supporting evidence.
9.7. Where Clear Path negotiated or materially facilitated a binding settlement or repayment arrangement before closure, commission shall continue to be payable on qualifying payments made under that arrangement, including payments received more than six months after closure.
9.8. No commission shall be payable on a recovery demonstrably unrelated to Clear Path's services or where Clear Path expressly waives its entitlement in writing.
9.9. Clear Path may immediately suspend or terminate an Instruction where there is a serious contractual breach, unlawful instruction, material compliance risk or other sufficient legal reason.
9.10. Termination shall not affect accrued payment obligations, confidentiality, data protection, applicable indemnities or other provisions intended to survive termination.
Accuracy of Information, Data Protection & Client Indemnity
10.1. The Client warrants that all information, documents, personal data and instructions supplied to Clear Path are, to the best of the Client's knowledge following reasonable verification, accurate, complete, up to date and not misleading.
10.2. The Client warrants that it has the necessary authority and lawful basis to disclose personal data and other information supplied for recovery purposes.
10.3. The Client shall promptly notify Clear Path upon becoming aware of any inaccurate, incomplete, outdated, misleading or unlawfully supplied information.
10.4. To the fullest extent permitted by law, a business Client shall indemnify Clear Path against reasonable and properly incurred losses, liabilities, third-party claims, damages, legal fees, investigation costs, remediation costs and other foreseeable expenses directly arising from the Client's material breach of these obligations.
10.5. This includes circumstances involving:
a. Incorrect debtor identities, names or addresses.
b. Incorrect outstanding balances or payment histories.
c. Misleading or falsified contractual documents.
d. Failure to disclose payments, settlements or material disputes.
e. Disclosure of personal data without appropriate authority or lawful basis.
f. Data protection complaints or third-party claims materially caused by inaccurate or unlawfully supplied information.
10.6. Recoverable costs may include reasonable legal and professional fees, data breach assessments, investigation and notification expenses, remediation costs and compensation properly payable to affected parties, to the extent directly attributable to the Client's breach.
10.7. Regulatory fines or penalties shall be recoverable only where legally permissible and enforceable.
10.8. The Client shall not be liable under this indemnity for losses attributable to Clear Path's own negligence, unlawful processing, misconduct or breach of its statutory obligations.
10.9. Where both parties contribute to a loss, liability shall be allocated according to their respective responsibility, subject to applicable law.
10.10. Clear Path shall take reasonable steps to mitigate losses and shall consult the Client where practicable before incurring material costs under this indemnity.
10.11. Clear Path may suspend recovery activities where it reasonably believes that information supplied is inaccurate, misleading, incomplete or unlawfully obtained.
10.12. Each party shall comply with applicable data protection legislation, including the UK GDPR and Data Protection Act 2018. The parties' controller or processor roles shall be determined according to their actual processing activities, with a separate data-processing agreement entered into where legally required.
10.13. These obligations shall survive termination in respect of information supplied and acts or omissions occurring during the contractual relationship.
Ancillary Services and Additional Costs
11.1. Clear Path may offer additional services including debtor tracing, Land Registry searches, letters of claim, legal referrals, court proceedings, enforcement and insolvency-related services.
11.2. Such services may be subject to separate charges, which shall be disclosed to the Client before instruction.
11.3. The Client shall not be liable for additional discretionary expenditure unless the scope and cost have been approved in advance.
11.4. Any approved third-party costs, disbursements or professional fees shall remain payable in accordance with the agreed terms for those services.
11.5. No Collection, No Commission applies to standard in-house recovery commission and does not automatically waive separately agreed ancillary or third-party charges.
11.6. Clear Path may coordinate with appointed third-party professionals but shall not be responsible for guaranteeing their outcomes.
Liability and Limitations
12.1. Clear Path shall exercise reasonable care and skill in providing its services.
12.2. Clear Path does not guarantee successful recovery, debtor solvency, favourable court outcomes or the availability of assets for enforcement.
12.3. Clear Path shall not be responsible for losses caused solely by materially inaccurate information supplied by the Client, provided Clear Path has acted with reasonable care and complied with its own legal obligations.
12.4. Clear Path shall not be liable for a Client's independent decision to reject a settlement, discontinue proceedings or compromise a Debt, except to the extent the loss arises from Clear Path's breach or negligence.
12.5. Nothing in these Terms shall exclude or restrict liability for fraud, fraudulent misrepresentation, death or personal injury caused by negligence, or any other liability that cannot lawfully be excluded.
12.6. Any limitation of liability shall be subject to applicable law, including statutory requirements of reasonableness and consumer protection.
Confidentiality and Communications
13.1. Each party shall maintain the confidentiality of information received in connection with the Instruction, except where disclosure is authorised, legally required or reasonably necessary for the provision of services.
13.2. Clear Path may disclose relevant information to appropriately appointed solicitors, enforcement agents, tracing providers and other legitimate service providers, subject to applicable confidentiality and data protection obligations.
13.3. The Client agrees that ordinary operational correspondence and case updates may be provided electronically.
13.4. Formal notices may be delivered by email to the last notified contact address or by post to the address supplied by the relevant party.
13.5. Email notices shall ordinarily be treated as received on the next Business Day after transmission, provided no delivery failure notification is received, without prejudice to proof of actual receipt.
13.6. Confidentiality obligations shall continue following termination of the Instruction.
General Contractual Provisions
14.1. Entire Agreement
These Terms, the accepted case listing, any agreed quotation and any expressly incorporated written variations constitute the agreement governing the Instruction.
14.2. Amendments
Clear Path may update its published Terms from time to time. Amendments shall apply to existing Instructions only where validly agreed or otherwise permitted by applicable law.
14.3. Severability
If any provision is found invalid or unenforceable, the remaining provisions shall continue in effect to the extent legally possible.
14.4. Waiver
A failure or delay by either party in exercising a contractual right shall not automatically constitute a waiver of that right.
14.5. Assignment
The Client shall not assign or transfer an Instruction or its contractual obligations for the purpose of avoiding accrued fees or liabilities. Any assignment remains subject to applicable law.
14.6. Third Parties
Unless expressly stated, no person who is not a party to these Terms shall have rights to enforce them under the Contracts (Rights of Third Parties) Act 1999.
14.7. Governing Law
These Terms shall be governed by the laws of England and Wales.
14.8. Jurisdiction
Subject to mandatory consumer jurisdiction rights, disputes arising from these Terms shall be subject to the jurisdiction of the courts of England and Wales.
Consumer-Specific Provisions
15.1. Where the Client is acting as a consumer, mandatory statutory rights shall prevail over any inconsistent contractual provision.
15.2. These Terms shall not exclude or restrict rights available under the Consumer Rights Act 2015 or other applicable consumer protection legislation.
15.3. Where a statutory cancellation right applies under the Consumer Contracts Regulations 2013, Clear Path shall provide the required pre-contract information and cancellation instructions.
15.4. Where a consumer expressly requests that services commence during an applicable cancellation period, Clear Path shall obtain any required acknowledgements and provide the information prescribed by law.
15.5. Any amount payable following valid exercise of a statutory cancellation right shall be limited to what is permitted by law.
15.6. The business withdrawal fee under Section 7 and business indemnity under Section 10 shall not automatically apply to consumer Clients.
15.7. Any consumer cancellation or withdrawal charge must be fair, transparent, prominent and proportionate, and must not create a significant imbalance contrary to applicable law.
15.8. Nothing in these Terms shall prevent a consumer from exercising any non-excludable statutory remedy.
Acceptance and Acknowledgement
16.1. By accepting these Terms and instructing Clear Path, the Client confirms that it has been provided with the applicable Terms of Business and has had a reasonable opportunity to review them before entering into the agreement.
16.2. The Client acknowledges the agreed commission rate and understands that qualifying Recoveries may include direct debtor payments, returned assets, tenancy deposit deductions and recoveries made through solicitors or enforcement agents.
16.3. Business Clients acknowledge the provisions governing withdrawal following settlement offers, direct settlements, post-closure commission and liability for inaccurate information.
16.4. Where an Instruction includes recovery of a specific asset or tenancy deposit, the relevant scope, recovery value or valuation basis and commission arrangements must be expressly agreed.
16.5. The Client acknowledges that termination or closure of an Instruction does not automatically extinguish commission or other fees properly payable under these Terms.
16.6. Acceptance may be recorded through a signed agreement, an electronic acceptance mechanism or other clear and verifiable agreement to these Terms.
Appointment and Scope of Services
2.1. The Client appoints Clear Path to undertake debt recovery and associated services in accordance with these Terms.
2.2. Clear Path may undertake recovery activities including written correspondence, telephone contact, email communications, settlement negotiations, payment arrangements, tracing, investigation and liaison with third-party recovery professionals.
2.3. Clear Path shall exercise reasonable care and skill in providing its services but does not guarantee recovery of any Debt.
2.4. Clear Path reserves the right to refuse, suspend or discontinue an Instruction where there are reasonable legal, regulatory, evidential, reputational or commercial grounds for doing so.
2.5. The Client authorises Clear Path to contact the Debtor and their representatives and to negotiate proposed settlement arrangements. Clear Path shall not enter into a binding settlement compromising the Client's rights without the Client's authority.
2.6. Clear Path does not provide reserved legal services. Where legal proceedings, court applications or enforcement are necessary, appropriately authorised professionals may be instructed with the Client's approval.
2.7. Unless otherwise agreed, Clear Path shall act as the Client's sole appointed debt collection agency in respect of the listed Instruction while the case remains active. The Client may communicate directly with the Debtor but must comply with the notification obligations in these Terms.
Commission, Fees and Payment
4.1. Standard Commission
Unless otherwise agreed in writing, Clear Path's standard commission shall be 15% plus VAT of the qualifying amount successfully recovered.
4.2. No Collection, No Commission
Clear Path operates a No Collection, No Commission model for its standard in-house debt recovery services.
No standard recovery commission shall become payable unless a qualifying Recovery occurs.
This does not exclude separately agreed ancillary service fees, approved legal or third-party costs, or the specific withdrawal fee provided for under Section 7.
4.3. Commissionable Amounts
Commission shall be calculated on the total qualifying value recovered in satisfaction of the listed Debt, including principal, recovered contractual or statutory interest and applicable late-payment compensation, unless otherwise agreed in writing.
Amounts recovered solely to reimburse separately paid court fees, solicitor disbursements or enforcement expenses shall not form part of the commissionable amount unless expressly agreed.
4.3A. Commission on Recovered Interest
Clear Path Collections Ltd reserves the right to charge its agreed commission rate, normally 15% plus VAT, on all interest, statutory compensation and other applicable charges successfully recovered in addition to the original debt.
This applies regardless of whether payment is received directly by the Client, Clear Path or an appointed solicitor or enforcement agent. Commission shall only be charged on amounts successfully recovered.
4.4. Direct Payments
Where the Debtor pays the Client directly, commission shall remain payable on the qualifying Recovery, regardless of whether Clear Path receives or processes the funds.
4.5. Partial Recoveries
Where only part of the Debt is recovered, commission shall be calculated on the amount successfully recovered.
4.6. Non-Monetary Recoveries
Where an asset or other non-monetary benefit is recovered within the agreed Instruction, commission shall be calculated in accordance with Section 6.
4.7. Commission Invoices
Clear Path may issue a commission invoice following confirmation of a qualifying Recovery.
Invoices shall be payable within seven calendar days of issue unless otherwise agreed.
4.8. Late Payment Interest
Where any invoice issued by Clear Path Collections Ltd remains unpaid after its due date, Clear Path reserves the right to charge interest on the outstanding balance at a rate of 8% per annum above the Bank of England base rate, calculated daily from the day following the payment due date until payment is received in full.
Interest shall accrue on a simple, non-compounding basis and shall be payable in addition to the outstanding invoice balance.
For qualifying business-to-business debts, Clear Path also reserves the right to claim applicable fixed-sum compensation and reasonable debt recovery costs under the Late Payment of Commercial Debts (Interest) Act 1998, to the extent legally recoverable.
This provision shall apply subject to applicable law and shall not override mandatory consumer protections.
4.9. Invoice Disputes
The Client shall notify Clear Path promptly of any genuine invoice dispute, providing reasonable details. Undisputed amounts remain payable.
4.10. No Duplicate Commission
Clear Path shall not charge commission twice on the same amount or recovery value. Any relevant withdrawal fee previously paid shall be credited against commission subsequently becoming due on the same recovery.