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Terms and Conditions

These terms and conditions, together with our General Terms of Business, sets out the terms of our offer to provide legal services to you and constitutes our costs agreement and disclosure pursuant to the Legal Profession Uniform Law (NSW) (the “Uniform Law”) (the “Cost Agreement”).

By submitting a debt for Final Demand or Immediate Legal Action, you acknowledge and confirm that you have read, understand and consent to the terms of the content (in other words agree to be bound by) this Costs Agreement.

  1. By you submitting a debt for Final Demand or Immediate Legal Action, you are instructing CAV Law Pty Ltd t/as Effective Debt Recovery (“EDR”) – Claudio Venegas director/lawyer to collect a debt by way of civil litigation court process.
  2. The legal services to be provided by EDR upon receipt of payment of the Fixed Fee and Disbursements are:
    1. Issue a Final Demand to the debtor as identified by you in the registration process; or
    2. Draft and file a statement of claim in the Local Court of New South Wales and claim the principal amount, interest, filing fees, service fees and scale solicitor’s costs; and
    3. Serve the statement of claim by post to the last known address of the debtor as identified by you in the registration process; and
    4. Inform you of the filing and service of the statement of claim and advise of the last date the debtor must file a defence; and
    5. Inform you if the debtor has not paid the amount claimed in the statement of claim and no defence has been filed, of your entitlement to file for default judgment; and
    6. Draft and file an application for default judgment and obtain judgment; and
    7. Advise of the enforcement steps that are available to you to enforce your judgment upon the debtor; and
    8. Provide you with copies of all process filed on your behalf including the Final Demand and keep you informed of developments in your claim within 1 business day of the event occurring.
  3. EDR will charge you and you agree to pay the Fixed Fee plus GST for the work set out in paragraph 2 as follows:

A. Final Demand Option

A fee of $45 plus GST will be charged if you select Issue Final Demand option.

B. Immediate Legal Action option:

If you select Immediate Legal Action option, EDR will charge and you agree to pay the following:

i. Administration Fee

An administration fee of $100 plus GST will be charged per claim you submit with EDR.

ii. Fees for Local Court NSW Claims:


Statement of Claim

Filing fee - Standard

Filing Fee - Corporate

Service Fee

Solicitors Costs

Under $1,000





$1,001 - $5,000





$5,001 -$20,000





$20,001 - $100,000




At hourly rate

Please note solicitor’s costs are exclusive of GST.


iii. Fees for obtaining default judgment in Local Court NSW:

Default Judgment

Solicitors Costs

Under $1,000


$1,001 - $5,000


$5,001 -$20,000


$20,001 - $100,000


Please note solicitor’s costs are exclusive of GST.


iv. Fees for enforcement of judgment debt in Local Court NSW: (Please note solicitor’s costs are exclusive of GST.)

Request for Copy of Judgment/Order

 Prof Costs 

 Filing Fees

Court Filing Fee





 Prof Costs

 Filing Fees

Prepare and file Writ for the levy of property





 Prof Costs

 Filing Fees

Prepare and file Garnishee (bank or wages)




Examination Notice/Examination Order

 Prof Costs

 Filing Fees

Prepare Examination Notice including service



Prepare Order for Examination



Attendance at Examination



Arrest warrant for failed Examination (non-attendance)




The above scale of costs and fees set out in clause 3 are pursuant to the Legal Profession Uniform Law Application Regulation 2015 and Schedule 1 Civil Procedure Regulation 2012 as published from time to time and are subject to change every 6 months. EDR will update its website when changes are made to the above scale of costs and fees.

C. Disbursements:

We may incur disbursements (being money which we pay or are liable to pay to others on your behalf). Disbursements may include search fees, expert fees, witness expenses, travel expenses, transcript expenses, express post or courier services, photocopying, consultants and barrister's fees.

Where you instruct us to brief a barrister or other expert and they provide a disclosure and costs agreement we will provide this to you. In some cases, the barrister or other expert may enter into a contract directly with you for the provision of services.

We will ask you to pay these expenses and disbursements as and when we send you bills as per clause 1 of the General Terms of Business or request that you deposit sufficient cleared funds into our trust account on account of such expenses and disbursements.

You will be charged an additional amount for any GST that is required to be paid for the goods and services supplied by us to you.

D. Enforcement outside Civil Procedure Act NSW

If you instruct EDR to commence enforcement action against the debtor other than through the Local Court of NSW to recover the judgment debt, EDR will charge you and you agree to pay the following:



 Prof Costs

 Filing Fees

Bankruptcy Notice



Creditors Petition including first hearing (Corporation)



Please note solicitor’s costs are exclusive of GST.


Wind Up

 Prof Costs

 Filing Fees

Wind up, including first hearing



Please note solicitor’s costs are exclusive of GST.


IV. If you instruct EDR to collect a debt for claims $20,001 - $100,000 and over, EDR will charge you and you agree to pay its hourly rate for any work done as follows:


Hourly Rates

Amount per hour







Senior Solicitor/Director


Please note solicitor’s costs are exclusive of GST.


The solicitor(s) with the principal responsibility for assisting you in providing the legal services set out in this agreement is Claudio Venegas, Legal Practitioner Director. Any work done by a junior solicitor or paralegal, in respect of the legal services set out in paragraph A above will be done under the supervision of Claudio Venegas, a qualified Australian legal practitioner.

For any work done at the hourly rate you will be proportionately charged for work involving shorter periods less than an hour. Our charges are structured in 6-minute units. For example, the time charged for an attendance of up to 6 minutes will be 6 minutes will be 1 unit and the time charged for an attendance between 6 and 12 minutes will be 2 units.

 V. EDR is to account to you for all judgments or settlement moneys received by EDR and for all solicitor’s costs and disbursements incurred.

 VI. You authorise EDR to attend to all minor and administrative matters related to the conduct of the legal action without the need to take detailed instructions from you in relation to such matters.

Costs payable and recoverable on litigation outcome:

VII. The costs payable to EDR by you as set out in clauses 3, 4 and 5 of this agreement is not conditional upon EDR obtaining default judgment or being successful in winning a contested hearing. The costs payable to EDR by you are also not conditional upon you recovering your claim or judgment debt from the debtor. This is a low-cost service designed to maximise recovery of your claim and minimise legal fees and time spent on chasing debtors. If a debtor pays your claim you are likely to recover all solicitor’s costs and sometimes, the administration fee, depending on the value of your claim.

VIII. Even if you are successful in proceedings, for claims $20,001 to $100,000 or greater, and have a costs order in your favour it is unlikely that you will recover all the costs you must pay EDR from the debtor. If you do have a costs order in your favour, it may still be necessary to seek to enforce such costs order e.g. through the assessment system.  This can be time consuming and costly.  The possible costs associated with such potential enforcement proceedings are not dealt with in this document, but will be advised to you should the relevant circumstances arise.

IX. It is also possible that you cannot recover the costs from the debtor (for example if the party goes into liquidation or becomes bankrupt); nonetheless you will still have to pay EDR all costs set out in this Cost Agreement.

X. If you lose the litigation, then you will likely have to pay the costs of the other party - either an amount you can both agree on or if no agreement can be reached then an amount of costs assessed by a costs assessor as payable. However, the Court always has a discretion in relation to costs orders.

XI. In relation to costs, it is important to note the following:

  1. All courts have a discretion in respect of awarding costs. Costs are normally awarded in favour of the successful party in the proceedings. In some courts such as the Small Claims Division of the Local Court and for claims less than $20,000 in the Local Court the amount of costs you can recover are very limited – according to the court scale costs outlined above. The estimated costs payable for claims $20,001 to $100,000 or more is about 65%-75% of the successful party solicitor-client costs.
  2. The estimated ranges of costs are prepared bearing in mind that only a certain percentage of your total legal costs are recoverable or may be payable. Simply put, even if you win and obtain an order that the other party pays your costs, you will still be out of pocket with respect to legal costs charged by us on the solicitor/client basis.
  3. If you win at first instance, you may still face the prospect of meeting the costs of defending your verdict, if the other side appeals. If you lose at first instance, you may be advised to appeal.
  4. Any cost estimates provided with respect to an appeal are very uncertain as the costs associated with an appeal will depend upon many factors including initial trial length, findings by the court of first instance, nature of appeal to be run and which party is appealing. The possible costs associated with winning or losing on appeal are not dealt with in this document but will be advised to you should an appeal follow the result at first instance.


General Terms of Business

1. Billing Arrangements

EDR offers a same day service if a debt is submitted between 9.00 am to 4.00 pm Monday to Friday, excluding public holidays, bank holidays and weekends. Payment is due at the time of submitting a debt for recovery online, via pay-pal of credit card or EFT – see details on www.effectivedebtrecovery.com.au. A remittance advice is required to be presented to EDR with the debt details if paying by EFT. This will ensure a same day service to be provided to clients making an EFT payment. Otherwise, EDR will act upon receiving cleared funds. EDR will issue you with a tax invoice once payment has been made for the service ordered online. 

2. Acceptance of Offer

You may accept the Costs Disclosure and Costs Agreement by:

  1. Submitting a debt to EDR; or
  2. Making a payment to EDR; or
  3. Continuing to instruct us.

Upon acceptance you agree to pay for our services on these terms.

3. Interest Charges

Interest at the maximum rate prescribed in Rule 75 of the Legal Profession Uniform General Rules 2015 (“Uniform General Rules”) (being the Cash Rate Target set by the Reserve Bank of Australia plus 2%) will be charged on any amounts unpaid after the expiry of 30 days after a tax invoice is given to you. Our tax invoices will specify the interest rate to be charged.


4. Recovery of Costs

The Legal Profession Uniform Law (NSW) (“the Uniform Law”) provides that we cannot take action for recovery of legal costs until 30 days after a tax invoice (which complies with the Uniform Law) has been given to you.


5. Your Rights

It is your right to:

  1. negotiate a costs agreement with us;
  2. negotiate the method of billing (e.g. task based or time based);
  3. request and receive an itemised bill within 30 days after a lump sum bill or partially itemised bill is payable;
  4. seek the assistance of the designated local regulatory authority (the NSW Commissioner) in the event of a dispute about legal costs;
  5. be notified as soon as is reasonably practicable of any substantial change to any matter affecting costs;
  6. accept or reject any offer we make for an interstate costs law to apply to your matter; and
  7. notify us that you require an interstate costs law to apply to your matter.


If you request an itemised bill and the total amount of the legal costs specified in it exceeds the amount previously specified in the lump sum bill for the same matter, the additional costs may be recovered by us only if:

(i) when the lump sum bill is given, we inform you in writing that the total amount of the legal costs specified in any itemised bill may be higher than the amount specified in the lump sum bill, and

(ii) the costs are determined to be payable after a costs assessment or after a binding determination under section 292 of the Uniform Law.

Nothing in these terms affects your rights under the Australian Consumer Law.


6. Your Rights in relation to a Dispute concerning Costs

If you have a dispute in relation to any aspect of our legal costs you have the following avenues of redress:

  • in the first instance we encourage you to discuss your concerns with us so that any issue can be identified and we can have the opportunity of resolving the matter promptly and without it adversely impacting on our business relationship;
  • you may apply to the Manager, Costs Assessment located at the Supreme Court of NSW for an assessment of our costs. This application must be made within 12 months after the bill was provided or request for payment made or after the costs were paid.

7. Payment Methods

It is our policy that, when acting for clients, we do any one or more of the following:

a)    Request that you make an online payment using Pay-Pal, cedit card or EFT payment for any services; or
b)    Ask the client to pay monies into our trust account.

Unless otherwise agreed with you, we may determine not to incur fees or expenses in excess of the amount we hold in trust on your behalf.

EDR does not accept money order or cheques or cash payments.

8. Authorisation to Transfer Money from Trust Account

You authorise us to receive directly into our trust account any judgment or settlement amount, or money received from any source in furtherance of your work, and to pay our professional fees, internal expenses and disbursements in accordance with the provisions of Rule 42 of the Uniform General Rules. A trust statement will be forwarded to you upon completion of the matter.


9. Retention of Your Documents

On completion of your work, or following termination (by either party) of our services, we will retain your documents for 7 years. Your agreement to these terms constitutes your authority for us to destroy the file after those 7 years. The authority does not relate to any documents which are deposited in safe custody which will, subject to agreement, be retained on your behalf indefinitely. We are entitled to retain your documents while there is money owing to us for our costs.

You will be liable for the cost of storing and retrieving documents in storage and our professional fees in connection with this.


10. Termination by Us

We may cease to act for you or refuse to perform further work, including:

  1. while any of our tax invoices remain unpaid;
  2. if you do not within 7 days comply with any request to pay an amount in respect of disbursements or future costs;
  3. if you fail to provide us with clear and timely instructions to enable us to advance your   matter, for example, compromising our ability to comply with Court directions, orders or           practice notes;
  4. if you refuse to accept our advice;
  5. if you indicate to us or we form the view that you have lost confidence in us;
  6. if there are any ethical grounds which we consider require us to cease acting for you, for example a conflict of interest;
  7. for any other reason outside our control      which has the effect of compromising our ability to perform the work required within the required timeframe; or
  8. if in our sole discretion we consider it is no longer appropriate to act for you; or
  9. for just cause.

We will give you reasonable written notice of termination of our services. You will be required to pay our costs incurred up to the date of termination.


11. Termination by You

You may terminate our services by written notice at any time. However, if you do so you will be required to pay our costs incurred up to the date of termination (including if the matter is litigious, any cancellation fees or other fees such as hearing allocation fees for which we remain responsible).


12. Lien

Without affecting any lien to which we are otherwise entitled at law over funds, papers and other property of yours:

(a)       we shall be entitled to retain by way of lien any funds, property or papers of yours, which     are from time to time in our possession or control, until all costs, disbursements, interest and other moneys due to the firm have been paid; and

(b)       our lien will continue notwithstanding that we cease to act for you.


13. Privacy

We will collect personal information from you in the course of providing our legal services.  We may also obtain personal information from third party searches, other investigations and, sometimes, from adverse parties.


We are required to collect the full name and address of our clients by Rule 93 of the Uniform General Rules. Accurate name and address information must also be collected in order to comply with the trust account record keeping requirements of Rule 47 of the Uniform General Rules and to comply with our duty to the courts.


Your personal information will only be used for the purposes for which it is collected or in accordance with the Privacy Act 1988 (Cth). For example, we may use your personal information to provide advice and recommendations that take into account your personal circumstances.


If you do not provide us with the full name and address information required by law we cannot act for you. If you do not provide us with the other personal information that we request our advice may be wrong for you or misleading.


Depending on the nature of your matter the types of bodies to whom we may disclose your personal information include the courts, the other party or parties to litigation, experts and barristers, the Office of State Revenue, PEXA Limited, the Land and Property Information Division of the Department of Lands, the Registrar General and third parties involved in the completion or processing of a transaction. 


We do not disclose your information overseas unless your instructions involve dealing with parties located overseas. If your matter involves parties overseas we may disclose select personal information to overseas recipients associated with that matter in order to carry out your instructions.


We manage and protect your personal information in accordance with our privacy policy [which can be found on our firm website or a copy of which we shall provide at your request]. Our privacy policy contains information about how you can access and correct the personal information we hold about you and how you can raise any concerns about our personal information handling practices. For more information, please contact us in writing.


14. Sending Material Electronically

We are able to send and receive documents electronically. However, as such transmission is not secure it may be copied, recorded, read or interfered with by third parties while in transit. If you ask us to transmit any document electronically, you release us from any claim you may have as a result of any unauthorised copying, recording, reading or interference with that document, for any delay or non-delivery of any document and for any damage caused to your system or any files.


15. GST

Where applicable, GST is payable on our professional fees and expenses and will be clearly shown on our tax invoices. By accepting these terms, you agree to pay us an amount equivalent to the GST imposed on these charges.


16. Governing Law

The law of New South Wales governs these terms and legal costs in relation to any matter upon which we are instructed to act.




Make Contact

© 2019 CAV Law Pty Ltd trading as Effective Debt Recovery, ABN 63 616 409 244
T: (02) 8935 3898 | sales@effectivedebtrecovery.com.au | NEXUS LAW GROUP, LEVEL 11, 66 CLARENCE STREET, SYDNEY NSW 2000