COLLECTION SERVICES AGREEMENT
THIS AGREEMENT is made effective this _____ day of _______________, 20_____, between Credit Bureau of Wichita, Inc. ("Agency"), and ___________________________________ ("Subscriber").
1. Subscriber and Agency agree that Agency shall provide the following services to Subscriber:
(check all applicable)
___ Collection of Bad Checks. Subscriber agrees to direct its bank to forward return checks directly to Agency (a copy of such bank authorization is attached and incorporated herein by reference.) Agency agrees to diligently pursue recovery of same.
___ Collection of Delinquent Accounts. Subscriber agrees to deliver or cause to be delivered to Agency, a complete description of accounts for which collection services are required. Agency agrees to make all diligent and reasonable efforts to effect collection of delinquent accounts.
2. All compensation paid by Subscriber to Agency shall be on a contingency fee basis:
- Regular Collection: A fee of thirty-five percent (35%), contingent upon amounts collected will be the sole consideration due Agency for accounts collected directly by Agency.
- Forwarded Accounts: A fee of fifty percent (50%), contingent upon amounts collected will be the sole consideration due Agency for accounts forwarded to another agency for collection.
- Legal Accounts: A fee of fifty percent (50%), contingent upon amounts collected will be the sole consideration due Agency for accounts placed with an attorney for collection.
In the event a partial payment on account is received, Subscriber and Agency mutually agree that such payments are subject to the contingent fee described above. Subscriber agrees that, once an account is received by Agency, it is subject to the fees set out above, irrespective of whether payment is made to Agency of Subscriber, and such fees will be earned until an account is canceled and returned according to the provisions hereof. It is hereby understood and agreed by both parties that Agency earns fees only on amounts collected.
3. Legal Action: Both parties acknowledge and agree that legal action may be required from time to time to effect collection of delinquent accounts and bad checks. Agency agrees to diligently investigate the location, employment and financial condition of debtors, to determine the potential viability of legal action against the debtor. Subscriber acknowledges that Agency is under no duty to initiate legal action. Should Agency elect to authorize a legal action, Subscriber agrees to advance court costs if requested and provide detailed source documentation of the debt. Once a legal action has commenced, Subscriber, at its sole discretion may direct the action be dismissed?
Subscriber expressly authorizes Agency and appoints Agency as its agent to legally notify consumers of impending prosecution for unpaid returned checks; to prepare offense reports to present to the Office of the County Attorney; to maintain communication with the Office of the County Attorney on Subscriber's behalf; and to execute such other matters incidental to the prosecution of bad check offenders as consistent with the policies and display a legal notice informing consumers that a designated return check fee will be added to any and all checks returned unpaid.
4. Insurance and Responsibility for Error: Agency agrees to maintain in full force and effect insurance covering damages arising from efforts to collect delinquent accounts and dishonored checks and, further, agrees to indemnify and hold Subscriber harmless from any liability and damages arising from efforts to collect delinquent accounts. Subscriber agrees to comply with the terms, conditions and duties as described in this agreement and, further, agrees to indemnify and hold Agency harmless from any liability and damages arising from Subscriber's breach of this agreement. Subscriber agrees to comply with the Federal Fair Debt Collection Practices Act, and further, agrees to indemnify and hold Agency harmless from any liability and damages arising from Subscriber's non-compliance with said Act.
5. Changes in Debtor Status: In the event Subscriber receives information regarding a change in a debtor's status, Subscriber agrees to timely communicate said information to Agency. Specifically, but not by way of limitation, Subscriber agrees to inform Agency of any bankruptcy stay order received in regard to a debtor. Further, Subscriber agrees to save Agency harmless and indemnify Agency from any damages or liability arising from breach of Subscriber's duty to inform Agency of changes in debtor's status.
6. Terms: This agreement shall continue until terminated by either party. Either party may terminate this agreement at any time by giving the other party written notice of termination at least thirty (30) days prior to the date of termination. In the event of termination, Agency agrees to cancel and return all accounts placed with Agency by Subscriber. Both parties agree, that upon termination, neither party is relieved of its duty to indemnify and hold the other harmless according to the terms and conditions of this agreement for any act occurring during the period this agreement was in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this agreement effective the date first above written.
____________________________________________ Credit Bureau of Wichita, Inc. Subscriber
By:_______________________________________________________________
By:_______________________________________________________________
(PLEASE BE SURE TO PRINT)
COMPANY NAME - __________________________________________________________
D/B/A - __________ INC. - __________ (CHECK ONE)
IF D/B/A - OWNER(S) NAME - _______________________________________________________________
IF INC. - OWNER(S) NAME - ___________________________________________________________________
ADDRESS - _________________________________________________________________
CITY - ________________ STATE - _______________ ZIP - ________________________
PHONE - ( ) _______________ - _____________________________