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VENDOR SERVICE AGREEMENTik
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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.
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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
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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
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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/
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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(
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M ry n Burke, Memb r
Date: 1./
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Lori 1Nat , Member
Date: l 6D f it
ATTEST:
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Diana L. Cordray, IA C Clerk-Treasurer