Listing a Claim


What claims can be listed?

Claims that may be listed on Red Debtor are amounts that you claim to be owing from a business in relation to a commercial debt which are more than 30 days past their due date.

Can I list debts that I claim are owed to me from an individual person?

No. Red Debtor does not list claims in relation to personal debts.

A business owes me money for more than one invoice. Do I need to claim the debt listed under each invoice separately?

Red Debtor requires that any debts that have different due dates or are invoiced through different documents be claimed and listed separately. This is for many reasons including that each debt may be due at a different time, may be paid by the debtor separately or may be either accepted or disputed by the debtor for different reasons.

Does the claim need to be listed on Red Debtor's website?

No.  If you do not wish to list a claim on the website but would still like to use Red Debtor’s services to collect the claim information and facilitate a letter of demand to be sent, you can do so by ticking the “Private claim” box during the listing process.

Can I recover the legal fees and/or interest from the business that I am claiming the debt from?

If the agreement/contract with the business contains terms which allow you to recover:

  1. fees incurred by you to recover the debt claimed;

  2. interest,

then you are usually entitled to recover these costs and they can be added to the amounts claimed through Red Debtor by completing the relevant sections of the list a claim form.

After your first FREE listing, our legal partners can provide you with terms to include in your trading terms/contracts to ensure that fees payable in relation to future listings are recoverable from the debtor and can be added to the amounts claimed through Red Debtor.

Do I need to provide documents to Red Debtor to support that a debt is owed to me?

Yes.   Before the debt is listed and the letter of demand can be sent, you need to upload a copy of the invoice or other contractual document supporting the claim.

If you are claiming interest or costs in relation to recovering the debt, you will also need to provide us with documents to show that you are entitled to those costs.  For example, if your trading terms or agreement include a term that you can recover interest or the costs of recovering a debt, then you should upload those documents.

Copies of the supporting documents will be provided to the debtor with the letter of demand.

Do listings on Red Debtor’s website identify the person or business who has listed the debt claim?

No. The debtor is notified of the identity of the person listing through the letter of demand process. However, the website uses a unique identifier number for each creditor, which is included in the details section for each claim listed by that creditor.  This enables people accessing the claims information to see the extent to which multiple claims against a particular business are made by the same or different creditors, but does not disclose the identity of the person/business listing the claim.

Is the debtor notified of the claim once it is listed?

Yes. Red Debtor requires that the business that you are claiming the debt from receive a letter from our partner law firm notifying them of the listing and demanding payment.   This is to ensure that the business listed is properly notified of the listing and that a formal demand is made for payment.

The law firm will verify all of the information prior to sending out the letter of demand. The verification process will usually be completed within 1 business day and they will contact you if they require any further information.  No fees are payable unless and until the claim is listed and the letter of demand is sent.

How much will I be charged for listings?

You will not be charged a fee for your first listing and letter of demand.

Once you have used your first free listing, you will be charged a small fee for the legal letter of demand at rates set by our partner law firm. The fees are currently as follows:

Base Pricing

  Fee (incl GST)

Small debt claims (under $1,000)

$45

Standard debt claims (over $1,000)

$90

 

If you are entitled to and choose to recover interest and/or debt recovery costs, then you will also be charged some additional fees in addition to the base pricing. Those fees are currently as follows:

Additional Fees

Fee (incl GST)

Including interest claim

$50

Including cost recovery of fees

$150

 No fees are payable unless and until the claim is listed and the letter of demand is sent.

Can I remove a claim after listing it?

Any claim that has been disputed by the debtor and remains unpaid, can be removed from the website by logging into your account and marking the claim as "Resolved". The removal of listings otherwise remains at the discretion of Red Debtor.

After listing a Claim


What happens once the amount claimed is paid?

When a claim is first listed, the status will be identified as "Unpaid".  If the debtor pays the amount claimed as owing to your business, they should notify Red Debtor using the link provided to them in the letter of demand.

Once the amount is paid and the payment is confirmed (or not disputed) by the person listing the claim, the claim will be updated on the listing as “Paid”.

What happens if a claim is listed on Red Debtor but the business disputes that the money is owing?

If a business disputes a claim which is listed against it, they can fill out a Disputed Claim form which they can access through the website. Upon receipt of a Disputed Claim form, the status of the claim will then be updated to “Disputed”.  However, it remains at Red Debtor’s discretion to change the status of the claim back to “Unpaid” if the debtor has not in fact identified a proper basis for disputing the claim.

If at any stage Red Debtor is satisfied that a claim was not actually owing by the debtor at the time of listing, the listing will be removed from the website.

What happens if someone falsely submits a listing that a business owes it a debt?

Red Debtor takes the provision of false information on its website very seriously.

If you believe someone has submitted a false listing about your business, you will need to fill out the Disputed Claim form.

If Red Debtor is satisfied that false information has been provided by a person/entity, the relevant listings will be removed from Red Debtor, the relevant person/entity will be suspended from using Red Debtor and Red Debtor may notify the appropriate regulatory authorities.