11.02 - Collection Services Agreement

Home Browse Search

Agency will attempt to collect, as an independent contractor, certain accounts,drafts and other ~ instruments hereinafter collectively referred to as"account"which represents monies due clients. In consideration of the mutual covenants,terms and conditions herein contained the parties agree as follows: 1. As to any account which Client may from time to time send to Agency for collection,Agency shall use reasonable care and its best efforts to collect such accounts pursuant to this agreement. 2. In collecting such accounts,Agency shall comply with all applicable laws,rules and regulations and shall engage only in activities and actions and use only collection tools and methods which fully comply with all applicable laws,rules and regulations. In addition,Agency shall obtain whatever licenses and bonds and fulfill whatever other requirements as are required in order to perform this agreement. 3. Except as provided in Number 4 below,effective immediately Agency shall be entitled to a conunission fee as stared on front of agreement. All costs and expenses incurred in connection with the collection of accounts will be bome by the Agency. Agency shall be entitled to such fee on amounts collected by or paid directly to Client on accounts which Client has sent to the Agency and which have not been returned to Client. 4. Agency shall be entitled to reimbursement of court fees when Agency determines account is uncollectible and Client directs Agency to obtain a judgment for record. 5. Client agrees to promptly notify Agency of any and all payments received directly and not make arrangements without contacting agency. 6. Client agrees to the charges set forth in this agreement and shall promptly pay Agency's statements which shall be due upon receipt. 7. Agency will keep complete and accurate records with respect to all accounts handled and action taken with respect thereto,which records Agency will allow Client to inspect,audit and/or review upon Client's request. 8. Any monies collected by Agency on accounts sent to it by Client shall be remitted in full to Client on a monthly basis(less any fee to which Agency is entitled as specified in Number 3),together with an itemized report,listing the accounts upon which collections were made,the amounts of the fee deducted or due Agency for collections. 9. All monies collected by Agency on accounts shall be kept in a separate Trust Account and not commingled with other funds or monies until such time that they are remitted to Clients. 10. Agency will make no settlement for less than full amount due on an account nor institute any legal action or law suit with respect to an account without written consent of Client. 11. Agency is and shall be at all times be an independent contractor in the performance of this agreement. 12. This agreement may be terminated by either party upon a thirty(30)day written notice. 13. Agency agrees to indemnify and hold harmless the City of Pequot Lakes/Client from any claims arising from collection of an account by the Agency pursuant to this agreement,including but not limited to claims for violation of the Fair Debt Collection Practices Act,or other applicable law, including claims for attorneys fees and expenses.