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Collection Agency Agreement for Malaysia

Collection Agency Agreement Template for Malaysia

A Collection Agency Agreement governed by Malaysian law that establishes the terms and conditions under which a collection agency provides debt recovery services to a client company. The agreement complies with Malaysian legislation including the Debt Collectors Act 1974, Financial Services Act 2013, and Personal Data Protection Act 2010. It outlines the scope of collection services, commission structures, compliance requirements, operational procedures, and data protection obligations while ensuring adherence to Malaysian debt collection practices and regulations.

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Collection Agency Agreement

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What is a Collection Agency Agreement?

The Collection Agency Agreement is essential for businesses operating in Malaysia that require professional debt recovery services. This document is used when a company needs to engage a licensed collection agency to recover outstanding debts from customers or debtors. The agreement ensures compliance with Malaysian regulations, particularly the Debt Collectors Act 1974 and related financial services legislation. It covers crucial aspects such as the scope of collection services, fee structures, operational procedures, compliance requirements, and data protection measures. The document is particularly important given Malaysia's strict regulations on debt collection practices and the need to maintain professional standards in debt recovery operations while protecting both the creditor's and debtor's rights.

What sections should be included in a Collection Agency Agreement?

1. Parties: Identification of the client company and the collection agency, including registration numbers and registered addresses

2. Background: Context of the agreement, including the client's need for collection services and the agency's qualifications

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope of Services: Formal appointment of the collection agency and detailed description of services to be provided

5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

6. Fees and Commission: Payment terms, commission rates, and calculation methods

7. Compliance and Legal Requirements: Obligations to comply with relevant laws, regulations, and ethical collection practices

8. Operating Procedures: Standard procedures for debt assignment, collection activities, and reporting

9. Data Protection and Confidentiality: Obligations regarding handling of personal data and confidential information

10. Representations and Warranties: Statements of fact and promises made by both parties

11. Indemnification: Mutual indemnification obligations and liability limitations

12. Dispute Resolution: Procedures for handling disputes between parties

13. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

What sections are optional to include in a Collection Agency Agreement?

1. International Collections: Additional terms for cross-border collection services, used when the client requires collection from debtors in other countries

2. Legal Proceedings: Terms regarding initiation and handling of legal proceedings, included when the agency is authorized to take legal action

3. Special Industry Requirements: Specific provisions for regulated industries like banking or healthcare, included based on client's industry

4. Performance Metrics: Detailed performance standards and KPIs, included for larger contracts or when specific performance levels are required

5. Insurance Requirements: Specific insurance coverage requirements, included when the client requires particular insurance levels

6. Subcontracting: Terms governing the use of subcontractors, included when the agency may need to engage third parties

What schedules should be included in a Collection Agency Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of fees, commission rates, and payment terms

2. Schedule 2 - Service Level Agreement: Specific performance metrics, reporting requirements, and service standards

3. Schedule 3 - Operating Procedures: Detailed collection procedures, contact protocols, and escalation processes

4. Schedule 4 - Compliance Requirements: Specific compliance procedures and requirements

5. Appendix A - Reporting Templates: Standard formats for regular reporting and documentation

6. Appendix B - Power of Attorney: Standard form of power of attorney for legal proceedings if applicable

7. Appendix C - Data Protection Protocols: Detailed procedures for handling personal data and maintaining confidentiality

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Banking and Financial Services

Insurance

Telecommunications

Healthcare

Utilities

Retail

Education

Property Management

Manufacturing

Professional Services

Relevant Teams

Finance

Legal

Compliance

Risk Management

Operations

Credit Control

Accounts Receivable

Treasury

Procurement

Internal Audit

Relevant Roles

Chief Financial Officer

Finance Director

Credit Control Manager

Accounts Receivable Manager

Legal Counsel

Compliance Officer

Risk Manager

Operations Director

Collections Manager

Financial Controller

Treasury Manager

Credit Risk Analyst

Debt Recovery Specialist

Contract Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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