_____________________________, referred to as AGENCY and _____________________________, referred to as CLIENT, agree:
AGENCY represents that it is properly licensed, bonded, with a capable and trained (if required) staff of collectors, and can effect reasonable and lawful effects to collect accounts receivable of CLIENT.
CLIENT shall provide to AGENCY, from time to time, accounts receivable to collect. CLIENT represents that any accounts which it turns over to AGENCY are legally due and owed. CLIENT shall provide upon request to AGENCY source documentation for any and all accounts due, and, verification of any balance due.
AGENCY shall at all times conduct collection activity on behalf of CLIENT in compliance with all lawful regulations and laws and shall hold CLIENT harmless from any claims related to unlawful collection activity. A periodic report of the status of all collections shall be provided to CLIENT by AGENCY at least every _________________________.
AGENCY shall receive a fee of __ percent from all sums collected on behalf of CLIENT. AGENCY may deduct from sums collected its fee; however, all sums which are due to the CLIENT shall be held in a separate trust account. In the event that a debtor returns merchandise, the value for the purposes of the agreement shall be the net sales price received for the same, or if the merchandise is accepted by CLIENT, ___ its wholesale value.
CLIENT shall be entitled to, either itself or through designated agents, auditors and Accountants, conduct audits of the books and records of AGENCY to verify accountings.
CLIENT shall be entitled to withdraw accounts once assigned from AGENCY, however, if any collections are made as related to such accounts shall be reported to AGENCY, and the AGENCY fee paid.
AGENCY shall be responsible for all expenses related to its collection efforts, other than court costs and attorneys fees, if suit is authorized, and expenditure is approved for court costs and attorneys fees. Any suit fees or court costs shall be approved in writing prior to their expenditure.
Dated: _________________
____________________________________________________
By Client
____________________________________________________
By Agency
Collection Agency AgreementReview List
This review list is provided to inform you about this document in question and assist you in its preparation. Signing this agreement establishes the agreement between the parties and prevents any confusion as to the particulars of collections and payments to the parties.
1. Make multiple copies. Give one signed original to each party.
A collection agency agreement is a legal document that outlines the terms and conditions between a business and a collection agency for the purpose of recovering outstanding debts. It typically includes details such as the payment structure, responsibilities of both parties, and the rights and obligations of the debtor. This agreement is important to protect both parties' interests and ensure a smooth and professional debt recovery process.
If you have a written agreement from the collection agency specifying the terms of your repayment plan and you have fulfilled (and are fulfilling) those terms as specified in the agreement, they probably cannot. If the collection agency is empowered by the original creditor to file suit and you do NOT have a written agreement from the collection agency as specified in paragraph one (1) above, they probably can. The laws of your state will prevail.
Yes, a collection agency can file a judgment against you for credit card debt in Texas if you fail to repay the debt. This could result in wage garnishment or liens on your property. It's important to address the debt or negotiate a repayment plan to avoid legal action.
Have the collection agency send a written agreement accepting the settlement or payment amount agreed upon BEFORE rendering any payment(s).
A Commercial Collection Agency is and agency that collects debt on behalf of their clients, same as a consumer collection agency, but a commercial collection agency collects business to business.
No! The only obligation of the collection agency regarding a debt is to accurately report the debt...i.e. balance outstanding, current status, and payment history. However, if you are paying or contemplating paying a collection agency, it would be wise to negotiate a positive outcome...i.e. the total removal of the account from your credit profile in exchange for payment. This should be negotiated prior to paying the collection agency and the agreement should be in writing.
Yes, a collection agency can attempt to collect a debt that was settled by another agency if they believe the debt is valid. However, if the previous agency settled it as 'not valid,' you may dispute the debt with the new agency and provide them with documentation supporting the previous resolution.
The commercial collection agency is used in debt collection in the event a debtor fails to.
A "verbal" agreement isn't worth much. If you don't have a written agreement you can't prove there was any agreement at all. I would contact the business and see if they will document your verbal agreement.
If this occurs, then they may have violated the Fair Debt Collection Practices Act, or they may have generally breached a contract with you. If the violate the Fair Debt act, then you have a lawsuit against them.
If the bill was late enough to be sent to a collection agency, the collection of that bill has been turned over to that collection agency as well.
A Commercial Collection Agency is and agency that collects debt on behalf of their clients, same as a consumer collection agency, but a commercial collection agency collects business to business.
Norwegian National Collection Agency was created in 1990.