for Collection Services
Name:_________________________________ Contact Name:____________________________
CAPITAL GROUP, INC., a Utah corporation, hereinafter
referred to as "AGENCY" and ________________________________________________,
hereinafter referred to as "CLIENT", agree that CLIENT's delinquent
accounts (the "Accounts") placed with AGENCY are uncontested
and subject to the term and conditions of the following agreement between
of AGENCY in collecting the Accounts shall be in compliance with all
applicable Federal, State and Local laws and shall be courteous and
businesslike, consistent with the image and reputation of CLIENT.
collected by AGENCY on Accounts shall be deposited immediately in
a separate trust account maintained in a bank, the deposits of which
are insured by the FDIC, for CLIENT as well as AGENCY'S other clients
(the "Trust Account"). AGENCY is authorized to endorse,
tender, deposit and negotiate checks received from or in behalf of
debtors and drawn in favor of CLIENT pursuant to this agreement.
sums received by AGENCY on the accounts will be remitted to CLIENT,
less AGENCY'S Collection Fees (as such term is defined in Section
6 below), within 30 days of verification that said payment has cleared
debtor's bank account. In the event CLIENT receives any sums in payment
of an Account directly from or in behalf of a debtor after AGENCY
has commenced work to collect the Account, CLIENT shall report such
collection to AGENCY and AGENCY shall invoice CLIENT for the amount
of the Collection Fee due on its next monthly statement.
month monies are received, AGENCY will prepare a monthly statement
containing the names, dates and principle payments that were received
by AGENCY or CLIENT during the month. Any Collection Fees due AGENCY
as a result of payments received directly by client from debtors are
due and payable to AGENCY upon receipt of the statement by CLIENT.
AGENCY has the right to offset such fees against sums received by
it on the Accounts.
event a check is received directly by CLIENT on an Account and the
check is returned unpaid to CLIENT after CLIENT has paid AGENCY the
Collection Fee due, CLIENT shall report such returned check to AGENCY.
AGENCY will list such returned checks on the next statement as a deduction
from the amount of the Collection Fee due and payable by CLIENT for
that month 's statement.
agreed and understood that AGENCY will charge a collection fee of
33% (thirty three percent) for all accounts placed for collection.
In the event that legal intervention is required, the fee will be
50% (fifty percent). AGENCY may assess additional interest and collection
fees against any accounts placed for collection. Client understands
that AGENCY is entitled under this agreement to keep as compensation
any monies received over 66% of the principle balance placed, for
non-legal status accounts. For legal accounts, AGENCY is entitled
to keep all monies received over 50% of the principle balance. All
monies paid over and above the base principle placement balance shall
be considered earned compensation by AGENCY for its services under
agrees to advance all court costs on Accounts referred for civil legal
collection action. CLIENT agrees that, with respect to any given Account,
AGENCY may reimburse itself for such advanced court costs and legal
fees and shall deduct its Collection Fee out of the sums collected
on such Account. The balance after such deductions shall be remitted
to CLIENT. In addition, AGENCY shall retain any other amounts awarded
by the court and collected from the debtor, such as attorney fees
and court costs awarded by the court. AGENCY will not receive any
reimbursement for court costs or other fees advanced by it with respect
to Accounts for which no sums are collected on the Account.
is not requested to furnish information concerning the Accounts placed
with AGENCY to any credit bureaus.
warrants that all Accounts placed with AGENCY are valid and legally
enforceable debts and are not disputed or subject to defense, offset,
set off, counterclaim or bankruptcy proceedings, unless otherwise
disclosed in writing to AGENCY by CLIENT. CLIENT shall immediately
notify AGENCY, in writing, of any disputes or payments or bankruptcy
notifications received by CLIENT subsequent to placement of an Account
with AGENCY. CLIENT shall be liable and shall indemnify, defend and
save AGENCY harmless from and against any and all suits, actions,
claims and demands, costs, actual damages, expenses and attorney fees
incurred in connection with any Account that is disputed by the debtor
or alleged to be subject to any defense, offset, set off, counter
claim or bankruptcy proceedings.
is not obligated to file suit in connection with Accounts placed with
it pursuant to this Agreement. AGENCY is not liable for claims that
become barred by any statute of limitations while in AGENCY's possession.
AGENCY reserves the right to close and return Accounts at such time
as AGENCY makes a determination to do so.
Agreement may be terminated by either party upon giving sixty (60)
days prior written notice to the other party. Termination or cancellation
of this Agreement by either party shall have no effect on the collection,
enforcement or validity of any accrued obligations owing between the
parties, nor shall it have an effect on AGENCY'S right to receive
Collection Fees in connection with paying Accounts, as well as the
right to recover any court costs advanced on Accounts as set forth
in Section 7 hereof. Should Client terminate this agreement, it is
agreed and understood that agency will not return accounts that are
then set up for payment or legal action pending until all monies have
been collected and received by agency from debtor.
- All notices
given or required by this Agreement shall be sent by United States certified
or registered mail; postage prepaid, by a nationally recognized overnight
counter service, which shall be addressed to Western Capital, 11075
South State Street, Suite 12B, Sandy, Utah 84070. It is further understood
that AGENCY is and will be acting and occupying the status of an independent
contractor and not the status of an agent (except as defined in paragraph
7) or employee of CLIENT.
is entered into by and between AGENCY and CLIENT, THIS _____________day
of _______________________ 200____ by their duly authorized and empowered
PRINT THIS AGREEMENT, SIGN IT, AND FAX A COPY TO
WESTERN CAPITAL AT 1-800-865-4197
MAIL THE ORIGINAL