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HomeMy WebLinkAboutC12-178 Red River Collection Service Agreement 05/23/2012 08:16 3033168943 RED RIVER RECOVERY PAGE 02
Red River Collection Company, Inc.
Collection Service Agreement
This Collection Service Agreement is made by and between Red River Collection Company. Inc. hereinafter referred to as
"Agency" and _L hereinafter referred to as "Client ", this %
day of ,2011
1. C hark agrees Agency will be assigned to collect delinquent accounts receivable. notes, checks. or other types of debt,
hereinafter referred to as "account ",
2. Client agrees to cease all collection, billing and contact with debtor, co- debtor and /or guarantor of account once
account is assigned to Agency.
3. Client agrees not to assign any account to Agency when bankruptcy has been filed on an account. If Client becomes
aware a bankruptcy has been filed on an account already assigned to Agency. Client shall immediately notify Agency
of such Cling or if Client has been informed a debtor, co- debtor and /or guarantor is represented by an attorney.
4. Client agrees accrued interest and/or finance charges as applicable, all court costs and/or fees paid by Agency may be
recovered by Agency bcfore applying payments to principal balance.
5. Client agrees to immediately notify Agency of any payment or credit adjustment received on assigned account.
6. Agency agrees to mail Client it's remittance on or before the 15'" day of the following month in which the recovery of
money occurred.
7. To the extent allowed by Colorado law Client agrees to hold harmless Agency from any injury, loss, or damage arising
from the violation by Client of any local, state or federal law or regulations in connection with accounts) assigned to
Agency or arising from erroneous or incomplete information furnished by Client to Agency.
8. Client agrees not to add any amount to principal balance of debt other than allowed by applicable law or contract. This
includes interest rates above 8% per annum, late -fees, missed appointment charges, and mailing/copy fees unless these
additional charges are supported by signed document(s) by debtor, co- debtor and /or guarantor) or allowed by
applicable law. The addition of "costs of collection' cannot be added to any principal amount of debt until such time as
the account is litigated and approved by a court of competent jurisdiction
9. Client agrees to provide and pay for its own legal counsel in the defense of any action or counterclaim brought against
Client that is claimed to be the result of action(s). counterclaim(s), proccdure(s) or omission(s) of Client over which
Agency has /had no control.
10, Client agrees Agency may elect to report or not report unpaid debt to a credit reporting agency. Client fltrther agrees
Agency may be restricted in reporting debt to a credit reporting agency due to client name and /or business /industry.
11. Client agrees to pay Agency its commission regardless where payment/credit is paid or how paymenUcredit is applied
balance of the account assigned for collection. Agency fees are: A) 30% of all principal amounts of
t di
to the outstanding b g
debt recovered without resort to legal action. B) 50% of all principal amounts of debt recovered without resort to legal
action on second placement accounts (accounts that have been assigned to a prior collection service or attomcy. C)
50% of all principal amounts of debt recovered on any account when litigation action has commenced_ Legal action is
deemed to have commenced upon service of a Summons and Complaint or other legal document. D) Agency shall
retain 100% of all interest and/or other amounts allowable by law or contract. E) 50% of all principal amounts of debt
recovered on any account forwarded to an out -of state collection agency or attorney. P) Agency shall retain 100% of all
return check charges and any other litigating or state fees which may apply. Client shall receive 100% of the face value
of the check upon collection. If the check debt is settled for less than balance due then Client and Agency shall each
receive an identical percentage of the settlement amount. Client agrees stop payment checks will be accepted by
Agency as a regular debt with contingency fees identified in A, B, C. D and E. G) Agency may receive 55.00
compensation for any account assigned and Client recalls the account or requests cessation of collection efforts. Client
agrees Agency has authority to settle any amount assigned for collection for 80% or more of the principal balance.
Client agrees to immediately pay Agency upon receipt of monthly invoice any monies due Agency due to reversal of
debtor payment or pay- direct. Client agrees to pay Agency usual contingency fees plus expenses, court costs and /or
attorney fees advanced by Agency when Agency is acting upon Clients written authorization to litigate an account and
Client recalls the account or requests cessation of collection efforts or fails to appear in court for trial testimony for any
reason. Client agrees any unpaid fees due Agency shall accrue interest at the rate of one and one half percent (1.5 %)
per month, and should litigation become necessary to recover money owed Agency shaft be entitled to reasonable
attorney fees. court costs and costs of collection.
12. Agency agrees to obtain written authorization from Client prior to forwarding accounts to anv other collection agency
ini.k„ ?;i..outsidc the State of Colorado.
13. Agency and Client agree authorization to forward accounts may be communicated to either party by email, facsimile or
regular mail.
05/23/2012 08:16 3033168943 RED RIVER RECOVERY PAGE 03
Collection Service Agreement
Page 2
14. This Agreement may be amended or terminated by either party upon thirty (30) days written notification to the other,
however, the provisions of this agreement shall remain in full force and effect with respect to accounts already assigned
to Agency by Client. Termination of this Agreement does not require return of any accounts assigned by Client to
Agency that are presently in "process of collection ". Process of Collection is defined as accounts assigned to Agency
by Client for I - . . nine (9) months, accounts with payment arrangements, forwarded accounts to any other
collection-it-my attorney or any litigated accounts. The Agreement may not be changed orally.
R River C � '
R . o 1 an , Inc. Client 1 -C CO) N.i/, , 4
T it ei :-.... ' . Title: RIM= IL: >
Date: Date: r an v