Loading...
HomeMy WebLinkAbout6008 Da ), -- � DYNAMIC COLLECTORS, INC. 1 a T 790 S MARKET BLVD. CHEHALIS, WA 98532 COLLECTORS 1'°C.•/. • (360) 748-0420 0 (800) 464-3457 0 FAX (360) 748-0262 - ACCOUNTS RECEIVABLE MANAGEMENT THIS CONTRACT made and entered into this 1 q th day of 9 , 2019 by City of Bremerton for the Municipal Court, Bremerton, Washington(hereafter calle "CITY")and Dynamic Collectors, Inc. (hereafter called"AGENCY"). It is understood that the AGENCY will be principally liable for compliance with this contract and insuring compliance of its affiliates, if any. WHEREAS,the CITY holds unpaid judgments, which it desires to have collected; and WHEREAS, statutory authority exists under RCW 3.02.045 for the assignment of said unpaid judgments to a licensed collection agency for collection; and WHEREAS, the AGENCY is duly licensed and bonded to collect said judgments assigned for collection by the CITY, THE PARTIES AGREE AND CONTRACT=AS FOLLOWS: 1. Term and Termination. Either party may terminate this contract within thirty(30)days written notice to the other party or otherwise as the parties may mutually agree. If at any time a party materially defaults on its obligations under this contract the injured party may, at its option, send a notice thereof to the party in default. If such default is not remedied within 15 days of delivery of such notice,the party sending the notice may thereafter terminate this contract. If the AGENCY should become the subject of bankruptcy receivership or insolvency proceedings,the CITY may elect to terminate this contract. Such election shall be effective immediately upon mailing written notice of termination to the AGENCY. On termination of this contract,the AGENCY shall, on request, furnish the CITY with any information obtained with reference to the assigned accounts and/or consumer obligated thereon. This contract shall automatically renew annually unless a desire to renegotiate a new contract is given by either party. 2. Assignment of Judgments. The AGENCY agrees to accept for collection and the CITY agrees to assign various judgments that the CITY determines appropriate for collection, upon the terms and conditions set forth herein. 3. Collection Efforts. The AGENCY shall exercise its best prudent and lawful efforts to secure collections of all accounts referred. 4. Debts Just and Owing. The CITY certifies that every account referred will contain accurate information and will be just and owing, and will not be subject to any valid defense, set-off or counterclaim then known to the CITY, including that such account or the obligor of such account will not be subject to any bankruptcy proceeding, stay or discharge as of the time of referral. The CITY shall promptly inform the 1 AGENCY, in writing, of any notice they receive that concerns any bankruptcy filing by any consumer, or of any other circumstance which is made known to the CITY, which constitutes a defense to a collection action. 5. Compliance with Laws. Collection activities by the AGENCY shall be in strict compliance with all State and Federal laws existing at the time of collection activity. These laws include, but are not limited to, Chapter 19.16 RCW(the Collection Agency Act), Chapter 19.86 RCW(the Consumer Protection Act),RCW 3.02.045 (governing use of collection agencies by courts of limited jurisdiction), Public Law 95-109 (the Fair Debt Collection Practices Act)and all applicable laws and regulations of the United States Departments of Postal Services and the Federal Trade Commission and the Federal Service Member's Civil Relief Act and any applicable state iteration thereof. 6. Legal Action &Work to be Performed The AGENCY shall do all work and furnish all equipment, labor and materials necessary to collect unpaid judgments assigned to the AGENCY by the CITY. The judgments assigned will be chosen at the sole discretion of the CITY. 6.1. The AGENCY will provide a thirty-day notice for the CITY prior to assigning the judgments for collections. The AGENCY will bear all expenses for the producing of this notice. This final notice will be designed to meet the approval of the CITY and will reflect that payment is to be made to the CITY. 6.2. Additional litigation by the AGENCY will be taken only after reasonable collection efforts have been made. Unless otherwise agreed, legal costs and fees will be paid by the AGENCY and not the CITY, and will be recoverable from the consumer where allowed by applicable law, out of first monies recovered. 6.3. In the event that a defendant resides in another state,the judgment assigned from the CITY may be forwarded to another collection agency with which the AGENCY has a Business Associates Agreement so long as the CITY receives notification of the forwarded judgment or the judgment assigned from the CITY may be cancelled as an alternative. 7. Insurance and Surety Requirements. For the duration of this contract,the AGENCY shall maintain in full force and effect and shall provide evidence of all insurance required by City of Bremerton for the Municipal Court, including, but not limited to, evidence of insurance against personal injury liability, comprehensive general liability,workers compensation, employer's liability and automobile liability insurance. Available upon request. Additionally,the AGENCY will provide a fidelity bond in the sum of$1,000,000.00. Available upon request. 2 8. Claims against Client. Neither the AGENCY, nor the AGENCY'S attorneys shall be responsible for providing the CITY with legal representation to defend the COURT against any claims, counterclaims or third-party claims asserted against the CITY, whether asserted in response to a collection lawsuit initiated by the AGENCY or otherwise. 9. Cancellation of Accounts. Any judgments referred to the AGENCY may be withdrawn by the CITY at any time. However, the CITY shall reimburse the AGENCY for any and all legal fees and costs incurred or awarded to the AGENCY.Notification of withdrawal may be verbal, but shall be verified in writing prior to the next report date. 10. Uncollectible Accounts. In the event an account is deemed uncollectible by the AGENCY, it may be returned to the CITY together with an explanation of why it is uncollectible. 11. Hold Harmless Clause. The AGENCY agrees to indemnify and hold the Clerk of the Court, City of Bremerton for the Municipal Court and all elected officials, employees and agents of the City of Bremerton for the Municipal Court harmless from and against any and all claims, demands, liabilities,judgments, losses and expenses, including but not limited to court costs and reasonable attorney fees occasioned by, arising out of related to,or in connection with any negligent or willful action or omission of the AGENCY or its employees and agents in the performance of the herein described. The CITY will indemnify and hold harmless the AGENCY, subsidiary or affiliated companies and divisions,and their officers,agents, owners, attorneys and employees from any claims arising out of or as a result of the negligent acts or omissions of the CITY, its employees or agents; and specifically agrees to indemnify and hold harmless from and against all claims resulting from errors in account information furnished to the AGENCY by the CITY. 12. Agency Compensation. CITY will receive 100% of the principal amount placed with the AGENCY when judgments are paid in full. The AGENCY will leave a$5.00 balance on the judgment principal portion owed until all collection fees, interest charges and legal costs or fees have been paid in full. Collection fees shall be added by the CITY onto judgments assigned to the AGENCY at the time of assignment. The AGENCY shall retain payment for services performed as set out hereafter: The fee will be based on the assigned judgment amount per RCW 19.16.500. If the amount is $100.00 or less,the CITY will assign a fee equal to the full amount. Judgments over$100.00 will be assigned a fee of 50%of the assigned amount. Judgments over$100,000.00 will be assigned a fee of 35%of the assigned amount. Partial payments will be split between the CITY and the AGENCY as follows: Payments shall be 3 applied first to all costs and fees incurred by the AGENCY, including, but not limited to: filing fees, ex parte fees, attorney fees and mailing and postage fees. Remaining payments shall be applied at a rate of 60%to the CITY and 40%to the AGENCY. 13. Interest Charges. Upon assignment to collection, interest shall accrue on all account amounts, including, but not limited to, court costs and/or collection fees, at the rate of 12%percent per annum. Accrued interest shall be calculated by the AGENCY, collected by the AGENCY and remitted by the AGENCY as follows: 100% of accrued interest to the CITY prior to the AGENCY commencing legal action and 100% of interest accrued after the AGENCY has commenced legal action shall be retained by the AGENCY. Any criminal accounts assigned to collection, shall not accrue interest. Criminal restitution amounts must be assigned as a separate account in order to accrue interest. The AGENCY reserves the right to stop charging interest on payroll deductions and post-dated payment plans. The CITY must receive full payment in order to close a case. The CITY authorizes the AGENCY to either waive or reduce interest as a negotiation tool. 14. Change in Law. Should there be changes in laws or through the CITY'S policies which prescribe/allow a different method for receiving collection fees,the AGENCY shall modify its methods accordingly. 15. Payments to CITY from Other Source. A payment made on behalf of a consumer directly to the CITY on an assigned account will be promptly reported to the AGENCY by the CITY. 16. Bankruptcy. When an account becomes subject to bankruptcy proceedings,the AGENCY will cancel the account back to the CITY. 17. Reports and Remittance Schedule. The AGENCY and the CITY agree to the following reports and remittance schedule, subject to mutual modifications: 17.1. The AGENCY shall furnish the CITY with a computerized acknowledgment of the assigned judgments within a reasonable period of time following receipt of the same. The acknowledgement shall include an ALPHA listing by name of judgment consumer, court assigned case number, amount assigned,total number of judgments and total dollar amounts assigned for collection. 17.2. The AGENCY will remit payment to the CITY weekly. 17.3. The AGENCY will furnish the CITY with a report indicating all judgments currently assigned to the AGENCY upon request. The CITY will be provided online access to assigned judgments if desired. 4 18. Compromises. The AGENCY will not engage in compromise settlement arrangements without the permission from the CITY on any judgment turned over(with the exception of interest adjustments). The CITY shall have no responsibility for uncollected costs advanced by the AGENCY. 19. Trust Fund Account. The AGENCY shall deposit all sums received in payment of assigned judgments in a trust account maintained at Security State Bank. All such funds shall be held in trust as the sole and exclusive property of the CITY and shall not be used or available for any use by the AGENCY for any purpose whatsoever; or in any way co-mingled with the assets of the AGENCY. Such funds will continue to be the funds of the CITY until remitted or otherwise transferred. The CITY authorizes the AGENCY to endorse cashier's checks and money orders made payable to the CITY for the purpose of deposit into said trust account. 20. Waiver. Failure to enforce any provision of this Contract shall not be deemed a waiver of that provision. Waiver of any right or power arising out of this Contract shall not be deemed waiver of any other right or power. 21. Severability. In the event any term or condition of this Contract or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other terms conditions, or applications of this Contract which can be given effect without the invalid term, condition, or application. To this end the terms and conditions of this Contract are declared severable. 22. Notices. All notices, requests, demands, consents and other communications hereunder shall be in writing and shall be deemed to have been duly given when either(a) personally delivered; or(b) when deposited via certified mail, return receipt requests, postage prepaid to the intended recipient set forth below: If to the AGENCY: Dynamic Collectors, Inc. Attn: Kevin Klumper 790 S. Market Blvd. Chehalis, WA 98532 If to the CITY: City of Bremerton for the Municipal Court Attn: Dawn Williams 550 Park Ave. Bremerton, WA 98337 Phone: (360) 473-5260 23. Record Inspection. The CITY and its staff shall have access to the books, documents,papers and records of the AGENCY; which are directly pertinent to this Contract. The AGENCY shall allow inspection of such information upon request from the CITY. 5 24. Audit. The AGENCY will permit the CITY to audit court assigned judgments. Audits will be done at the AGENCY'S office on any accounts pertinent to this agreement. The AGENCY will be notified one week in advance that the CITY personnel will be conducting an audit and a time set for said procedure that is convenient for the AGENCY and the CITY. 25. Nondiscrimination. In doing the work herein described,the AGENCY shall not discriminate on the basis of race, religion, sex, sexual orientation, age,national origin, disability or any other protected class consideration. 26. Beneficiaries to Contract. This Contract is entered into for the benefit of the CITY and the AGENCY. No third-party beneficiaries are intended to be created or are created hereunder and no other party can derive any benefit here from. 27. Entire Contract. This Contract constitutes the entire understanding between the AGENCY and the CITY regarding collection services provided to the CITY by the AGENCY, and may not be modified except by written agreement signed by both parties. This Contract supersedes any prior Contract, unless incorporated herein by reference. 28. Choice of Law and Venue. This Contract shall be interpreted according to the laws of the State of Washington. Any judicial action to resolve disputes arising out of this Contract shall be brought in Kitsap County Superior Court. In WITNESS WHEREOF,the parties have executed the Contract on this I C f h day of 2019. DYNAMICUCOLLECTORS, INC. CITY OF BREMERTON FOR THE MUNICIPAL COURT BY: X / J BY: � ��CGI d"�'AD Kevin lumpe =,1 11 .UY1 X.c„1 Printed Name:rl. I.LL)n a); 1110,_1-7-6 President Title: Co u r}{ y_-46-ti-I-)-)tir13+,0-6—Cc-ND ADDRESS: ADDRESS: 790 S. Market Blvd. 550 Park Ave. Chehalis, WA 98532 Bremerton, WA 98337 , DATE: — I 1 CA DATE: -1-1 q - ) q ATTEST: Printed Name: TB Court Administrator 6