Collection Service Agreement

 

 

AGREEMENT

 

COLLECTION OF DELINQUENT ACCOUNTS

 

 

THE AGREEMENT entered into between __________________  (hereinafter referred to as the “Client”) and Delta Management Group, Inc. and its subsidiaries.

 

 

WITNESSETH:

 

WHEREAS, Client may have unpaid accounts which it may desire Delta Management Group, Inc. to collect and Delta Management Group, Inc. is qualified to collect such unpaid accounts and desires to handle such accounts as may be referred by Client, each upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HERIN CONTAINED, THE PARTIES HERETO DO AGREE AS FOLLOWS:

 

1)  Delta Management Group, Inc. agrees to undertake the collection of such accounts as Client decides to place with Delta Management Group, Inc. for the purpose of collection, and to use due diligence and employ such lawful means, methods and procedures as in its judgement, discretion, and experience it believes will best effect the collection of such accounts.  It is understood that Client, while interested in Delta Management Group, Inc. recovering a satisfactory percentage of those accounts placed with it for collection, is also desirous of maintaining its reputation and image on the highest possible level.

 

2)  Delta Management Group, Inc. agrees that Client will not be liable for any expense incurred by Delta Management Group, Inc. incidental to the settlement or the realization of the accounts placed with Delta Management Group, Inc. for collection except as herein provided.

 

3)  Client agrees that the settlement perimeters are_______% for Delta Management Group, Inc. to settle these accounts.  However, if account is past statute, Delta Management Group will try for the highest possible return and use it’s discretion on settlements.               

 

4)  Delta Management Group, Inc. agrees to indemnify and hold Client harmless against any and all liability, cost and expenses including attorney fees, occasioned by claims or suits for loss or damages arising out of the acts of the agents, servants or employee of Delta Management Group, Inc. during the term of this agreement.  Conversely, Client agrees to indemnify and hold Delta Management Group, Inc. harmless against all liability, cost and expenses including attorney fees, occasioned by claims or suits for loss or damages arising out of the acts of the agents, servants or employees of Client during the term of this agreement, including, without limitation, claims under paragraph 6, hereof.  The party receiving such notice shall promptly give notice of its intention to defend such claim, failing which the party seeking indemnification may engage counsel, whose fees and expenses shall be covered by this paragraph.  Each party agrees to cooperate fully with the other in the defense of any claim subject to this paragraph and not to settle or compromise any such claim without the consent of the other.

 

5)  Delta Management Group, Inc. agrees to remit monthly to Client the net amount of all monies received by Delta Management Group, Inc. on the accounts placed with it by client, after deduction of the commissions and fees payable pursuant to Paragraph 7 hereof.  Delta Management Group will mail to Client on the 24th business day of each month, the collection remittance from the previous month. 

 

6)  The Client agrees to advise Delta Management Group, Inc. immediately of payments made directly to Client to indemnify and hold Delta Management Group, Inc. harmless against any and all liability, loss and expenses including attorney fees, occasioned by claims or suits for loss or damages arising out of failure by Client to notify Delta Management Group, Inc.

 

7)  Delta Management Group’s commission is negotiable depending on the amount and age of the account.  Delta Management Group has the right to endorse for deposit and collection, in the name and on behalf of the Client, checks received on accounts placed for collection and to deduct from these checks, its authorized charges.

 

8)  Delta Management Group, Inc. agrees to close and return to Client each account if and when it is judged to be uncollectible.

 

9)  The Agreement may be terminated by either party at any time upon thirty (30) days written notice to the other of its election to do so. 

 

10)  It is agreed that upon termination of this Agreement, Delta Management Group, Inc. may retain for collection any account upon which partial payment has been made, or arrangements with the delinquent party have been established, until payment is made in full.

 

11)  Neither Delta Management Group, Inc. nor any of its agents or employees shall advertise or otherwise represent that Delta Management Group, Inc. is or has been in any way in the employment of the Client.  It is understood that Delta Management Group, Inc. is an independent contractor.

 

12)  Collector shall use all reasonable means and diligent efforts to promptly recover all account deficiencies assigned by Client to the Collector.  Collector agrees to provide proper storage, care, and diligence in handling all accounts and files assigned by Client to Collector.

 

 

 

Client:  _________________________                                        Delta Management Group, Inc.

 

 

By:  _____________________________                                    By:  ___________________________

                                                                                                                Nancy R. Backus

 

Title:  ___________________________                                      Title: Chief Executive Officer 

Address: _________________________                                    Delta Management Group 

_________________________________                                   2499 Rice Street, Suite #245

_________________________________                                   St. Paul, MN  55113

Phone:  ___________________________                                   Phone  (651) 481-9548