Loading...
HomeMy WebLinkAbout5.938 Original Contract 5. q 3/8 ~^ I \ AGREEMENT FOR COLLECTION SERVICES CITY OF PORT ANGELES, hereinafter referred to as "Client", agrees to utilize such services in accordance with the following terms and conditions: 1. Client will refer for collection services only those accounts certified to be just and owing and will supply Merchants Credit Association, hereinafter referred to as "MCA", upon request, with documentation supporting each debt assigned. 2. MCA collection activities shall be in compliance with federal, state, and local laws with adherence to the Fair Debt Collection Practices Act (FDCPA). 3. Client authorizes MCA to endorse checks payable to Client for the purpose of deposit into a separate trust account maintained by MCA for its clients. 4. MCA will prepare a remittance monthly displaying all payments received for the previous month containing account names, numbers, and dates payments were received. 5. Any settlement must be approved by the Client prior to the actual settlement with the debtor. 6. MCA's commission rate is 33% of the principal assigned as allowed pursuant to RCW 19.16.500. Client will notify consumer by letter of its intention to refer account to a collection agency as per RCW 19.16.500.2. MCA will add the 33% collection fee which will be retained by the agency as our commission. The principal amount assigned, when collected, will be returned in full to Client. Payments will be applied proportionally to principal and collection fee as paid. MCA advances all courts costs. MCA will retain all costs and attorney fees without limitation and these shall not apply to the contingency. 7. Client agrees to notify MCA immediately of payments received by them on accounts placed for collection. 8. Statements will be sent to Client monthly displaying all payments received for the previous month, corresponding account names, numbers, and dates payments were received. Collection contingency fees due MCA on any statement to Client are due and payable within 30 days of receipt of statement by Client. MCA has the right to offset any such fees unpaid after 90 days against collections made on Client's accounts. 9. MCA will add interest to accounts placed for collection at the rate allowable bylaw. Interest will be retained by MCA. merchants credit association p.o.box 7416 bellevue, wa 98008 2245 152nd aye ne / redmond, wa 98052 phone: (425) 643-2613 / 1-800-755-1107 / fax: (425) 643-8546 medical/hospital/dental / healthcare / professional/retail/commercial ~11l;j ~ HEALTHCARE CLIENT Y.RVICES DIVISION ~o~:4~' 1m".,', i! \~~~.,; '.~.V,: <tItIfATIO~" 10. MCA will not institute legal actions on debts without first receiving Client's written authorization to do so. Costs and attorney's fees incurred by MCA in litigation will be recovered from first monies collected by MCA prior to remitting to Client so that MCA's out of pocket expenses will be resolved first. Advanced court costs are the responsibility of MCA. 11. Credit Reporting... Collection account placements will be made with two national credit-reporting bureaus under MCA's contract. 12. Acknowledged accounts recalled from MCA shall retain the right to commissions on all paying accounts. In the event suit has been filed and Client cancels or revokes the assignment of any claim, Client agrees to pay MCA the 33% agreed commission together with any court costs and attorney fees actually expended by MCA. Client agrees to indemnify and hold MCA harmless in the case of a countersuit, or separate suit, based on the Client's negligence or wrongful act. Client further agrees to secure its own legal counsel at its sole expense in the event any claim is commenced against Client in any suit filed by MCA. Client is not responsible for court costs and attorney fees unless account is recalled before fees are collected. 13. All accounts placed with MCA are covered by our state-licensing bond and our ACA International professional liability insurance coverage. MCA is solely responsible for the employment, acts, omissions, control and direction of its employees. MCA shall defend and hold Client harmless against any claims, demands, or causes of action that may be asserted due to collection activity by MCA. Additionally, each party will be responsible for claims by a third party against the other based on the actions of its employees including the responsibility to hold the other harmless against any resulting judgments. 14. MCA agrees that all files and Client information we may be given access or exposed to while performing work under this contract shall be kept strictly confidential. MCA agrees not to sell or share any consumer information obtained from Client with third parties, other than credit reporting agencies in accordance with this contract. MCA further agrees that any consumer information provided by Client or acquired by MCA in the course of performing our work shall be used only to carry out the intended purposes for which the information was originally provided or acquired. 15. TERMINATION: This agreement may be terminated by either party on a 90 day notice in writing to the other, or otherwise as they may mutuallyagree; subject, however, to the retention of certain accounts on which payments are in process, or on which a schedule of payments has been arranged, or upon which suit has been brought, such account shall remain with MCA until it is clearly established they have become inactive by reason of debtor's continued failure to pay. Any such retained accounts shall be clearly identified, together with the arrangements made. . This agreement constitutes the entire understanding between MCA and the undersigned Client regarding terms and conditions as they pertain to all collection services provided to Client by MCA and may not be changed or modified except by written agreement signed by both parties. ....--- TITLE: Finance Director ADDRESS: PO Box 7416 Bellevue, WA 98008 ADDRESS: 321 East 5th Street Port Angeles, WA 98362 (800) 755-1107 DATE: q rC~t DWQ/akh DATE: (360) 457-0411 It/7/09 , I * - Contract shall be null and void if not fully executed by all parties within 30 days of contract date.