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HomeMy WebLinkAboutAmerican Financial Credit Services/Util r , tpPrc 4o`,� VENDOR SERVICE AGREEMENTik II This Agreement will be effective upon the execution of this document by and between The City of Carmel, Indiana, by and through its Board of Public Works and Safety, at City Hall, 1 Civic Square Carmel, IN 46032, Carmel Utilities and American Financial Credit Services, Inc. at 10333 N. Meridian Street Suite 270, Indianapolis, Indiana 46290(hereinafter referred to as "Client" and "Agency", respectively. WHEREAS, Agency, duly licensed and bonded in the State of Indiana and provides collection services and Client wishes to engage a firm to furnish such services. NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, the parties agree as follows: 1 . Client shall supply Agency with those bad debt accounts, which it desires Agency to collect. Agency shall endeavor to collect those accounts, utilizing acceptable methods and procedures in a professional and ethical manner, in accordance with all federal and state laws. 2. Client agrees to take reasonable efforts to supply Agency with the following information on each account referred for collection via a secure medium agreed upon by the parties: A. Biographical and billing information. B. Action follow-up and balance due information. C. Any other pertinent information or documents upon which the parties shall agree. 3. Client authorizes the reporting of delinquent patient account information to credit reporting institutions; provided, however, that the delinquency shall be reported in the name of the Agency and the Client. When Agency reports a delinquent account to a credit reporting institution, Agency shall be responsible for assuring that subsequent payments received on these accounts are accurately reported when account is paid-in-full. Upon the request of the Client, Agency shall notify the credit reporting institution to remove all information pertaining to these delinquencies from all affected debtor credit records. Agency shall hold Client harmless from any liability for failure to accurately and timely report debtor financial information to such credit reporting institutions. 4. The Client, or its designee, prior to confirmation with a debtor, must approve any settlement and/or compromise of an account referred to Agency by Client unless otherwise authorized in writing by the Client. Where Agency receives a contingency fee, Agency shall pay the applicable court costs to initiate and pursue the litigation process (when approved in writing and in advance by the Client) and shall be solely responsible for recouping these expenses from the debtor through usual court proceedings. Pre/post-judgment interest (may) be assessed against the debtor at a legally acceptable rate pre- established by the Client in writing for pre-judgment interest and as directed by the court for post-judgment interest. Agency shall record, and identify as such, all debit adjustments to debtor account balances resulting from court costs, attorney fees and interest assessments and also identify to which category each assessment or payment is applied. Agency will recoup 100% of the allowed court costs and attorney fees prior to applying monies collected on principle or pre/post-judgment interest ordered by the court. 5. Client authorizes Agency to endorse Client's name on payments received by Agency on accounts placed by the Client and to deposit all collections in a dedicated trust account. Posting of payments to debtor accounts by the Agency will occur within two (2) working days of receipt. Agency will provide the Client with secured online account viewing access for auditing purposes. 6. Monies received by Agency for a debtor billing creating a credit will be refunded within ten (10) working days by the Agency to the debtor and appropriate adjustment to the collection commission will be made. All credit balances and subsequent debit adjustments due to refund will appear on the affected debtor account. 7. Client will not be billed for costs advanced by Agency toward the collection of any account placed with Agency. 8. Agency shall apply monies collected in the following order: towards satisfaction of court costs (if and only to the extent ordered by the court), interest (if applied) and finally, principal. Agency must maintain a record that identifies payments received from the debtor/attorney/court and how such payments were applied to the individual debtor accounts. 9. Client agrees that the Agency will be entitled to its commission on all accounts assigned with the Agency where a debtor payment is received directly by the Client. Agency agrees to adjust any debtor account balance where the Client identifies a payment made prior to assignment with the Agency at no fee to the Client. 2 10. Client may recall any referred account at any time and Agency shall return all files and documents, which Client has referred to Agency, less any copies which Agency needs to retain for its own records. Agency shall be entitled to the agreed compensation on all collections received by Client on all payment arrangements originated by the Agency prior to recall. 11. During the time accounts are placed with Agency, Client agrees to report to Agency in regular monthly intervals any monies received directly from or on behalf of debtor on said accounts. (Use of fax machine is recommended over telephone communication of these payments). 12.Agency agrees to provide to the Client, or his designee, by the tenth (10th) business day of each month, a written accounting for the previous month's activities, including a breakdown of collections, receivables, cancellations, and liquidation percentage by placement month. With that report, Agency shall pay the net remittance to Client for that month. Net remittances not paid to Client within 30 days of the due date of that report shall bear interest at the rate of 1% per month. Agency will also submit a monthly report, which summarizes Client account status changes and will submit to the Client a cross-reference listing that identifies status codes and their descriptions. The Agency agrees to refund all collection fees to debtors who have paid in error, within ten (10) days of being notified by the Client. 13.Agency will utilize a "net remittance" method as agreed upon by the Client unless the Client receives payment directly from debtor and therefore owes a balance due Agency, Client agrees to pay Agency collection fees herein agreed upon within thirty-five (35) days from the receipt of the Agency's statement/invoice. 14.Agency will handle all communications regarding the accounts referred from Client and will not refer any party back to the Client unless instructed to do so by the Client. Agency requests for information (itemization of charges, "paid prior" investigation and disputes) will be submitted in writing to the Client. Agency requests which have not been satisfied within thirty (30) days will be brought to the attention of the Client, or his designee, for appropriate resolution. 15. Client agrees to supply Agency with the name(s) of a contact party at Client's place of business whom Agency may contact as the need arises to discuss any account referred by the Client. 16. This Agreement shall be effective on the date herein specified and remain in effect until terminated by either party as set forth herein. Either party may 3 terminate this Agreement upon providing thirty (30) days prior written notice to the other party unless Agency/Client violates this Agreement, or any federal or state laws regulating this Agreement, in which case this Agreement will terminate immediately. 17. In the event that either party terminates this Agreement and Client recalls accounts previously placed with Agency, Agency shall, at no cost to the Client, cease collection activities on said recalled accounts and return said recalled accounts to Client utilizing an updated status report on all accounts. Said report will include debtors name, loan number, updated balance due and most recent address and telephone number. Agency shall also forward to Client within ten (10) days of receipt by Agency all collections received by Client minus the agreed compensation rate. The Agency agrees to refund all collection fees to debtors who have paid in error, within ten (10) days of being notified by the Client. 18. During the term of this Agreement and for a period of twelve (12) months after the expiration of the Agreement, Client or its designee shall have the right upon reasonable notice to inspect and audit the books and records of Agency for the purpose of assuring Agency's compliance with the provisions of the Agreement. Agency shall cooperate in any such inspection or audit. 19.Agency agrees to comply with Client policy and all State and Federal statutes and regulations concerning the confidentiality of any debtor records or debtor information, which may be provided to the Agency pursuant to this Agreement. Agency further agrees to indemnify, defend and hold Client harmless from liability for the improper disclosure of debtor information by Agency, its agents or subcontractors or any other failure to comply with applicable law. 20. Each party shall protect, defend, indemnify and hold harmless the other party from and against all claims, losses, demands, damages and causes of action (including reasonable attorney fees) arising or in any way resulting from the willful or negligent acts or omissions of the party and its agents and employees. 21 .This Agreement contains the complete and final agreement between the parties with respect to its subject matter and supersedes all prior arrangements and understandings, oral and written, between the parties. 22.The Agreement shall be binding upon and shall insure to the benefit of both parties and their successors and permitted assigns. This Agreement may be amended or modified only by a written instrument signed by both parties. 23. Notice. Any notices required or permitted in the Agreement to be given shall be given in writing and shall be delivered (a) in person, (b) by certified mail, postage 4 prepaid, return receipt requested, (c) by facsimile, or (d) by a commercial overnight courier that guarantees next day delivery and provides a receipt, to the following: If to Agency: American Financial Credit Services Inc 10333 N. Meridian Street Ste 270 Indianapolis, IN 46290 Attn: Noel Williams, Director If to Client: The City of Carmel Utilities 760 Third Avenue SW Carmel, IN 46032 Attn: John Duffy, Director 24. This Agreement may not be assigned by Agency without the Client's prior written consent. ADDENDUM A SERVICES AND OBLIGATIONS Client agrees to utilize the Agency's first placements collection program. Contingency Fee: First Placement Collection Program (Recovery) 27% of principle balance due, added to all account placements and paid by the debtor. Contingency fees will only be retained by the Agency when the principle balance due is recovered. Legal Resolution: Pre-legal preparation services (employment verification or personal assets) and court filing fees are provided at no additional cost to our Clients. Legal services (and attorney referrals) are provided by AFCS in addition to pre-legal preparation, but the costs for legal services are based on the Client's service agreement policies. If the Client consented (in writing) to assume responsibility for court cost, attorney fees and pre/post- judgment interest; the cost of our legal services (court allowed) are added to the outstanding balance or subsequent judgment. If the Client did not sign a service agreement that includes responsibility for legal costs, the (court allowed) expenses will be retained by AFCS (referred attorney) out of any monies collected on the outstanding balance or subsequent judgment. AFCS will not pursue legal action on any guarantor account balance without prior signed approval from our Client. Attorney Firm: Bleecker, Brodey and Andrews 9247 N. Meridian Street, Suite 101 Indianapolis, Indiana 46260 (888) 574-0700 (phone) http://www.bbanda.com/ 6 IN WITNESS WHEREOF, the parties have executed this Collection Agreement on the date set forth below. American Financial Credit Services Inc. By: /1(26 -- — Date: �-28 —iDe Noel Williams, Director CITY OF CARMEL, INDIANA BY ITS BOARD OF PUBLIC WORKS AND SAFETY James Brainar , P esiding Officer Date: 4 la / i( A-4 M ry n Burke, Memb r Date: 1./ - -� r l Lori 1Nat , Member Date: l 6D f it ATTEST: n Diana L. Cordray, IA C Clerk-Treasurer