Payment plan agreement template

Payment Plan Agreement Paying a balance in instalments This agreement is made on ____ (Date of this agreement) between ____ (Business name) (the “Business”) and ____ (Customer’s full name) (the “Customer”). Section 1: What is owed 1.1 The Customer owes the Business a balance of ____ (The balance, with currency) for ____ (what it is for) (the “Balance”). 1.2 The Customer agrees that the Balance is correct and owed, and that the Business has not agreed to reduce it, except as set out below. ____ (Any agreed reduction, such as a discount for paying on time) Section 2: How the Customer will pay 2.1 The Customer will pay the Balance in ____ (Number of instalments) equal instalments, paid ____ (How often). The first payment is due on ____ (First payment due). 2.2 The amount of each instalment and its due date is shown below. # Due date Amount (US dollars) 1 ____ (Instalment 1 due) ____ (Instalment 1 amount) 2 ____ (Instalment 2 due) ____ (Instalment 2 amount) 3 ____ (Instalment 3 due) ____ (Instalment 3 amount) 4 ____ (Instalment 4 due) ____ (Instalment 4 amount) 2.3 The Customer may pay earlier, or pay more, at any time without charge. Extra payments reduce the last instalments first. Section 3: The first payment 3.1 The first instalment, in US dollars: ____ (First instalment (USD)). The Customer pays it by card, on a secure page, before signing: ____ (Pay first instalment) 3.2 The Business will give a receipt for each payment. Section 4: If a payment is missed 4.1 If an instalment is not paid within ____ (Days of grace) of its due date, the Business will write to the Customer. If it is still not paid ____ (Days to put it right) after that, the whole of the unpaid Balance becomes due at once. 4.2 The Business will not charge interest or fees on the Balance while the Customer is keeping to this plan, unless the law or the original agreement says it may. ____ (Late fee, if any, and how it is calculated) Section 5: If the Customer’s situation changes 5.1 If the Customer expects to have trouble paying, the Customer should say so before a due date. The Business will consider in good faith a change to the plan, which takes effect only if it is agreed in writing by both sides. Section 6: What stays the same 6.1 Nothing in this agreement is an admission by the Customer that the Balance is more than is properly owed, and nothing in it limits the Customer’s rights under the law to dispute a charge or to ask for information about how the Balance was calculated. 6.2 While the Customer keeps to this plan, the Business will not pass the Balance to a collection agency, start a court case to recover it, or report it as overdue to a credit reporting agency, unless the law requires it to. Section 7: Receipts and statements 7.1 The Business will give the Customer a receipt for each payment and, on request, a statement showing what has been paid, what is left and when the next payment is due, within seven days of the request. 7.2 When the last instalment has been paid, the Business will confirm in writing that the Balance has been paid in full and that nothing more is owed under this plan. Section 8: The whole agreement 8.1 This agreement is the whole agreement about the repayment of the Balance and replaces any earlier plan. It does not waive any right the Business has under the original agreement or the law, except that the Business will not demand the Balance faster than this plan provides for as long as the Customer keeps to it. Section 9: Governing law 9.1 This document, and any dispute arising out of it, is governed by the laws of the State of ____ (Governing law (state)), without regard to its rules about conflicts of laws. Section 10: General 10.1 Changes in writing. A change to this agreement is effective only if it is in writing and signed by both sides. An email exchange does not change it unless each side expressly says that it is a change and signs it electronically. 10.2 Counterparts and electronic signatures. This agreement may be signed in separate copies, which together are one document. A signature made electronically, including by typing, drawing or selecting a signature, is as effective as a handwritten one, and each side agrees to sign and keep this agreement in electronic form. Signatures By signing below, each party agrees to this document and confirms that the person signing has the authority to do so. Business ____ (Printed name) Printed name ____ (Title or capacity) Title or capacity ____ (Business signature) Signature ____ (Business date signed) Date Customer ____ (Printed name) Printed name ____ (Customer signature) Signature ____ (Customer date signed) Date