Layer 2 - Standardised Contract Appendix & SLA
Standard contract appendix and SLA specification for all DCA engagements
Executive summary
This document defines the standard contract appendix that must be used for all DCA engagements. No bespoke arrangements are permitted without documented exception approval per Layer 1. The appendix governs SLA metrics (performance + conduct), contact standards, disclosure control, delegation thresholds, reporting, and service credits & consequences.
1. Purpose
The appendix is attached to the master services agreement (MSA) or engagement letter and forms the DCA-specific schedule. Legal maintains the actual legal wording; this document is the governance specification for that wording.
2. Standard contract appendix - structure
2.1 SLA metrics (performance)
| Metric | Definition | Minimum standard (example) |
|---|---|---|
| Time to first contact | Days from assignment to first contact attempt | e.g. 95% within 5 business days |
| Recovery rate | $ collected / $ assigned (by cohort) | By segment target |
| Cure rate | % of assigned accounts that cure | By segment target |
| PTP keep rate | % of promise-to-pay commitments honoured | e.g. ≥ 70% |
| Assignment acceptance | % of files accepted within SLA that meet file spec | 100% of compliant files |
| Non-treatment | % of accounts with no treatment > X days | e.g. < 5% > 14 days |
Contract must state that failure to meet minimum standards for two consecutive months triggers formal remediation (Layer 6).
2.2 SLA metrics (conduct)
| Metric | Definition | Minimum standard |
|---|---|---|
| Contact frequency | Contacts per debtor per week | Max 6 per week per debt |
| Contact hours | Time window for phone/text and F2F | Phone/text 6am-9pm; F2F weekdays + Sat only, 6am-9pm |
| Disclosure compliance | No debt collection before s 132A disclosure (where applicable) | 100% |
| Complaints | Complaints (internal + FSL) per 1,000 accounts | Below threshold; trend monitored |
| QA pass rate | % of sampled calls/letters passing quality criteria | e.g. ≥ 85% |
| Hardship referral timing | Referral within agreed period of identification | e.g. 1 business day |
2.3 Contact frequency standards
- Phone / SMS / email: Maximum 6 actual contacts per week per debt; only between 6:00 and 21:00 local time.
- Face-to-face: Weekdays and Saturdays only, 6:00-21:00; no Sunday or public holiday F2F unless documented exception.
- No harassment, coercion, or misleading statements; no contact with third parties except as permitted and in line with Privacy Act.
- DCA must maintain evidence of contact frequency; bank may audit.
2.4 Disclosure control
Contract must clearly state who ensures CCCFA s 132A disclosure (bank or DCA) and by when. If DCA becomes debt collector after collection has started, disclosure within 10 working days per CCCFA. Disclosure failure is a Category A issue and triggers immediate escalation.
2.5 Delegation thresholds
All delegation limits must be set out in the Delegated Authority Schedule (Layer 1, Appendix A) and incorporated by reference or restated in the contract. Unauthorised exercise of authority is a Category B issue and may result in suspension of authority and/or service credits.
2.6 Reporting requirements
DCA must provide the Standard Monthly Reporting Pack (Layer 3) in the identical format prescribed, by the submission deadline (e.g. 5 business days after month end). Late or non-standard reporting is a Category C issue and may attract service credits.
2.7 Service credits & consequences
| Trigger | Consequence (example - legal to confirm) |
|---|---|
| SLA miss (performance) - 1 month | Warning; documented in performance review |
| SLA miss (performance) - 2 consecutive months | Formal remediation plan required; possible service credit |
| Conduct breach | Immediate escalation to Risk; possible suspension or termination |
| Delegated authority breach | Suspension of relevant authority until remediated; possible service credit |
| Repeated hardship delay | Independent review; possible suspension of new assignments |
| Material privacy issue | CRO escalation; possible termination and regulatory notification |
| Persistent reporting failure | Service credit; escalation to Risk Committee |
3. Exception process for bespoke arrangements
Any bespoke term that deviates from this standard requires: (1) Written business case and risk assessment; (2) Compliance and Risk review; (3) Documented exception approval per Layer 1; (4) Exception recorded in contract and in exception register. Standard appendix remains the default.
4. Document control
Owner: Legal for legal wording; Head of Collections for SLA and reporting content. Review: At least annually and as part of Annual Contract & Incentive Review (Layer 5). Contract appendix template version must be referenced in each DCA contract.