HomeMy WebLinkAbout3086 AllianceOne Receivables Management, Inc.
COLLECTION SERVICES AGREEMENT
THIS AGREEMENT is entered into between Bremerton Municipal Court, hereinafter called
"COURT," and AllianceOne Receivables Management, Inc., a Delaware Corporation and a
professional collection agency existing under the laws of the State of Washington, hereinafter
referred to as "AOI," effective June 1, 2004.
For and in consideration of the compensation hereinafter described and the covenants and
conditions herein contained, the parties agree as follows:
1. Assignment of Accounts. COURT will assign to AOI for collection such delinquent
accounts, hereinafter called "accounts," as COURT deems appropriate.
2. Collection Efforts. AOI will use commercially reasonable efforts to collect said accounts,
and will confine its efforts to the highest standard of ethical practice. The COURT and
AOI recognize that the appropriate level of activity may vary according to the type of
account, the account balance and the information available.
3. Debts lust and Owing. COURT 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, 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.
4. Compliance with Law. AOI's collection activities shall comply with federal, state and local
laws, including the Fair Debt Collection Practices Act (FDCPA), where applicable.
5. Legal Action. No legal action will be commenced on any account without written
permission, first obtained, from COURT. Legal action commenced under this agreement
shall be in the name of AOI and not COURT. AOI will promptly advise COURT if any
legal action is contested. COURT will provide evidence as requested by AOI to support
approved legal action, including providing a witness or witnesses for live testimony if
requested. Unless otherwise agreed, legal costs and fees will be paid by AOI and not
COURT, and will be recoverable from the DEFENDANT where allowed by applicable law,
out of first monies recovered.
·:~
i. '. 6. Indemnification. Each party will indemnify and hold harmless the other party from and
~iiii~,: against any and all claims and causes of action, be they meritorious or otherwise, asserted
: ~ against the other party except for claims and causes of action resulting from errors or
· . omissions of the other party, and each will reimburse the other for costs and legal expense
incurred in connection therewith.
7. Severability. In the event any term or condition of this Agreement or application thereof to
any person or circumstance is held invalid, such invalidity shall not affect other terms,
~onditions, or applications of this Agreement which can be given effect without the invalid
term, condition, or application. To this end the terms and conditions of this Agreement are
declared severable.
SERVICES AGREEMENT Page 2
8. Compensation.' Compensation to AOI will be a percentage of the original account balance,
which will be assessed by COURT as a court cost to the account at the time of assignment,
pursuant to RCW 3.02.045, resulting in the ret-am to the COURT of 100% of the original
assigned amounts collected, as follows:
a. For primary referrals after the commencement of this contract, a court cost in the
amount of 35% of the balance of the account will be assessed. AOI will retain a
commission fee of .2537 of the funds collected.
b. The compensation for all accounts assigned and residing in AOI's database under
any prior contrac~ will remain unchanged.
c. AOI will charge interest, at the rate of 12% per annum, on accounts assigned for
collection. All interest collected will be shared equally between COURT and AOI.
d. The court cost will be assessed by COURT by administrative rule and will be
added to the account in AOI's database by AOI's computer system at the time the
account is referred to AOI.
9. Time Payment Collection Program. AOI will continue to provide its time-payment
collection services for non-default obligations due to the COURT through its subsidiary
company Signal Credit Management Services (hereinafter referred to as "Signal"). The
costs of the Signal services will also be assessed by COURT under RCW 3.03.0~5 and
added to the account in Signal's database by Signal as follows:
a. $15.00 Account Set-Up Fee: a one-time charge per defendant to create a payment
plan.
b. $4.75 Monthly Fee: one charge per account per defendant with one case.
c. $8.25 Monthly Fee: one charge per account per defendant with multiple cases.
d. $7.75 Monthly Fee: one charge per account per defendant with one case in "past
due status."
e. $11.25 Monthly Fee: one charge per account per defendant with multiple cases in
"past-due status."
f. Interest will be charged at 12% per annum on the unpaid balance. All interest
collected will be retained by AOI/Signal.
g. Signal service includes monthly statements, phone call for missed or late payment,
and delinquency notices.
h. Upon default by a defendant in the Signal program, Signal will provide a report of
same to COURT, and unless COURT elects to suspend collection efforts, the
account will be forwarded to full collection status.
10. Remittance. Payments on COURT accounts made to AOI will be remitted by AOI to
COURT, less AOI's portion, on a weekly basis.
11. ~gotiable Instruments. COURT authorizes AOI to endorse checks or other instruments
payable to COURT and deposit same into a trust account separately maintained by AOI.
COURT further authorizes AOI to send notices of dishonor or other notices on COURT's
behalf for dishonored instruments, to assess and collect any permissible dishonored
instrument fees, and to retain any recovered fees, whether such instruments .were issued
before or after assignment of the account.
12. Account Audits. COURT may audit AOl's records pertaining to accounts assigned for
collection at any time during business hours upon reasonable notice.
Revised 04/04
SERVICES AGREEMENT Page 3
13. Term and Termination. This agreement will remain in effect until terminated by either
party. Any assignments by COURT and work performed by AOI prior to the signing of
this Agreement is specifically approved by the parties and ratified by this Agreement. This
Agreement may be terminated in whole or in part from time to time when deemed by the
COURT or AOI to be in its best interest. Termination of work hereunder shall be effected
by delivering to a party a Notice of Termination thirty (30) days prior to the specified
effective date, detailing the extent to which performance of work under this Agreement is
terminated.
14. Non-discrimination. AOI, in its collection efforts, will not discriminate against any
Defendant on the basis of race, color, creed, religion, sex or national origin. AOI will
comply with the requirements of the Americans with Disabilities Act of 1992, and all
regulations interpreting or enforcing said Act.
15. Beneficiaries to Contract. This Agreement is entered into for the benefit of COURT and
AOI. No third-party beneficiaries are intended to be created or are created hereunder, and
no other party can derive any benefit or right herefrom.
16. Entire Agreement. This Agreement constitutes the entire understanding between AOI and
COURT regarding services provided to COURT by AOI, and may not be modified except
by written agreement signed by both parties.
IN WITNESS WHEREOF, the parties have executed this contract on the date last written be ~v.
ADDRESS /ADDRESS:
6565 Kimball Drive, Suite 200 239 4~ Street
P. O. Box 2449 Bremerton, WA 98337-1875
Gig Harbor, WA 98335
Revised 04/04
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+ Contract Number 3086
+
+Vendor Name ALLIANCE ONE (FORMERLY ALLIED CREDIT)
+Subject COLLECTION SERVICES
Department MUNI COURT
Status Code PRO
+ Amount
+ Begin Date 04/24/1989
Insurance End Date
Type Amount Review Date 12/01/2003
$1000000.00
GL $2000000.00
AL $1000000.00
+ Insurance Total $4000000.00
+ Insurance Review Date 06/01/2004
+
Comments YR TO YR CHECK W/PENNY IN DECEMBER
+
ALLIED CREDIT COMPANIES
Our People Make The Difference
COLLECTION SERVICES AGREEMENT
THIS CON'FRACT, is made and entered into between Br~m~rton Municipal Cou~t
hereinafter ca]led "C~ent,' and ALLIED CREDIT COMPANIES, hereinafter called "ACC."
WITNESSETH:
That in consideration of the payments, convenants and agreements hereinafter
mentioned and attached and a part of this contract to be made and performed by the parties
hereto, the parties hereto convenant and agree as follows:
I. WORK TO BE PERFORM]ED: ACC shall do all work and furnish all equipment, labor,
and materials necessery to collect unpaid fines and forfeitures for accounts turned over to them
by Client. ACC shall provide all forms and postage as required.
II. Tllv[E OF COMMENC~ OF CONTRACT: The work to be performed under this
Contract shall commence ~'~ ~ ~,~ .19 ~,~-'
rtl. TEKMINATION: This Contract may be terminated by either party upon thirty (30) daye
advance written not~ce to the other party.
IV. l~ SCHEDULE: Client shall pay ACC for performance of the work deso'ibed in and
required by the doounents as follows:
a. Monetary assessments fines and/or infractions levied by Client.
b. Rate Structure: Upon placement of an account by Client with ACC, Client will
assess a collection fee to the account in the amount of $0% of the b~lance of the
account. ACC will c~ge a fee of 33-1/3% of the funds collected, resulting in a
100% payback of the original account balance.
c. ACC will remit to Client the total amount collected, less the appropriate fee.
cl. All accounts shall be deemed to have been assigned to ACC upon receipt of the
accounts by ACC from Client.
Funds collected by ACC shall be paid to Client on or before the fifteenth (15) day of each month
for collections made the preceeding month. Payments to Client shall be for the total a.mount
collected, less the appropriate fee. ACC shall supply su~.ficient documentation with monthly
payment to ~]ow independent verification of total amounts collected and 'calculations of
appropriate f~es with_held. In the event additional reports are deemed necessary in the future
for further breakdown purposes, ACC will be willing to work with Client to provide necessary
reports. Client may aunt ACC!s records pertaining to accounts assigned for collec~on with
provision of reasonable notice.
V. INDEMNIFICATION: ACC agrees a.nd convenants to indemnify, defend and eave
harmless Client and its officers, agents, and employees against and from any loss, damage,
costs, charges, expense, liability, cl'~, demands, or judgments, of whatsoever kind of nahum,
whether to persons or property arising wholly or partially out of an act, action, neglect,
omission, or in default on the part of ACC, their subcontractors and/or employees, except only
such injur~' of damage as shall have been caused by or resulted from the sole negligence of
Client.
ACC shall obtain and keep in force conl~nually during the term of the contract comprehensive
general HabilJ~y insurance coverage in the amotmt of at least One M~l~on Dollazs ($1,000,000.00).
ACC will supp]y to Client a copy of their coUed~on agency Hcense within 30 days of the signed
con~rect.
VI. ASSIGn: Neither pa_,~y ~o ~ agreement shall assign th~ agreement, nor any
interest, ttghL or responsibility arL~ing heregn, without the written consent of the other party.
VII. ACC, in its collection efforts, will not d~scrkmLnate against any debtor on the bas~ of
race, color, creed, religion, sex or nal~onal origin. ACC will comply with the requirements o[ the
Americans w~th DLsab~es Act of 1992, and all regulations interpreting or enfor~ng sa~d Act.
Th~ Agreement constitutes the entire tmderetamd~g between ACC a_nd the umders~gned Client
regarddmg terms amd cond~elons as they perta~ to all collection services provided to Client by
ACC amd may not be changed or modified except by written agreement signed by both part~es.
IN WITNESS WI-I~REOF, the par~es h~reto have execa~ed this conl=ract
at ~,_~ ~,~ ~. ~ ~ ~a~t.'~ , on the date L~st written below.
' '(CITY'ANI~ ~TAT~
ALLIED CREDIT COMPANIF_S CLI~NT:~ ~ ~g~W~.~
4/ 4
ADDENDU~ TO PROFESSZONAL SERVICES AGREEMENT
WHEREAS, the CITY OF BREMERTON and ALLIED CREDIT, Port
Orchard, Washington, a collection agency, heretofore entered into
a Professional Services Agreement dated April 17, 1989, and
WHEREAS, the parties desire to extend the Professional
Services Agreement for an additional three year term;
NOW, THEREFORE, in consideration for the mutual covenants set
forth below, the parties agree as follows:
I.
The term of the Professional Services Agreement, executed by
the parties hereto on April 17, 1989, shall be extended from April
24, 1992, to April 24, 1995.
II.
The City of Bremerton and Allied Credit agree that all
provisions of the original Professional Services Agreement, which
are not in conflict to this Addendum to Professional Services
Agreement, shall remain in full force and effect.
IN WITNESS WHEREOF the parties hereto have executed this
Addendum to Professional Services Agreement the date and year
indicated.
ALLIED CREDIT
~'.OI. IIS MENTOR, Mayor
ATTEST:
KATHLEEN McCLUSKEY, Clerk
' l IAHiR. SIEVERS, City Attorney
CITY OF BREMERTON
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this 17 day
of April , 1989 , between the City of Bre-
mertcn', a municipal corpora~ion (hereinafter called City),
and Allied Credit, Port Orchard, Washington, a collection
agency (hereinafter called Contractor).
WITNESSETH:
IN CONSIDERATION of the payments, covenants and
agreements hereinafter mentioned and attached and made a part
of this agreement to be made and performed by the parties
hereto, the parties hereto convenant and agree as follows:
I. CONTRACT DOCUMENTS. The contract documents consist of
this agreement, the Proposal submitted by the Contractor -
attachment "A", Certificate of Insurance - attachment "B",
Collection Agency License attachment "C". Copies of each
of these documents are attached hereto and by this reference
incorporated herein as a part of this agreement. Collection
activities shall be in compliance with U. S. Public Law
95-109 and Chapter 19.16 R.C.W., State of washington. The
Contractor is a member of the American Collectors Association
and subscribes to its code of ethics.
II. WORK TO BE PERFORMED. The Contractor shall do all work
and furnish all equipment, labor and materials necessary to
collect unpaid fines and forfeitures for accounts turned over
to them by the City. The Contractor shall provide all forms
and postage as required.
III. TIME OF COMMENCEMENT AND DURATION OF AGREEMENT. The
work to be performed under this agreement shall commence
April 24' 1989. The term of this agreement
shall be three (3) years.
IV. TERMINATION. This agreement may be terminated by either
party upon thirty (30) days advance written notice to the
other party.
v. AGREEMENT FEE SCHEDULE. The City shall pay the
Contractor for performance of the work described in and
required by the agreement documents as follows:
a. Rate Structure: Upon placement of an account by
City with Contractor, City will assess a collection fee to
the account in the amount of 50% of the balance of the
Professional Services Agreement
~Page Two
account. The Contractor will charge a fee of 33 1/3 of funds
collected, resulting in a 100% payback to the City of the original
account balance.
b. Contractor will remit to City the total amount
collected, less the appropriate fee, twice a month.
c. All accounts shall be deemed to have been assigned
to the Contractor upon receipt of the accounts by the
Contractor from the City.
The fees associated with the work performed by the Contractor
shall remain in effect for the agreement period. Payments to
the City shall be for the total amount collected, less the
appropriate fee. The Contractor's fee shall be deducted from
the amount collected on an equally prorationed basis.
VI. AUDITING, REPORTS. The Contractor shall supply
sufficient documentation with monthly payment to allow
independent verification of total amounts collected and
calculation of appropriate fees withheld. In the event
additional reports are deemed necessary in the future for
further breakdown purposes, the Contractor will be willing to
work with the City to provide the necessary reports. The
City may audit the Contractor's records pertaining to
accounts assigned for collection with provision of reasonable
notice.
VII. INDEMNIFICATION. The Contractor agrees and convenants
to indemnify, defend and hold harmless the City and its
officers, agents, and employees against and from any loss,
damage, costs, charge, expense, liability, claims, demands or
Judgments, of whatsoever kind or nature, whether to persons
or property arising wholly or partially out of any act,
action, neglect, omission, or default on the part of the
Contractor, his subcontractors and/or employees, except only
such injury or damage as shall have been caused by or
resulted from the sole negligence of the City. In case any
suit or cause of action shall be brought against the City on
account of any act, action, neglect, omission or default on
the part of the Contractor, his agents, subcontractors and/or
employees, the Contractor hereby agrees and convenents to
assume the defense thereof and to pay any and all costs,
charges, attorney fees and other expenses and any and all
Judgments that may be incurred or obtained against the City.
viii. INSURANCE. The Contractor shall obtain and keep in
force continually during the term of the agreement
comprehensive general liability insurance coverage in the
Professional Services Agreement
Page Three
amount of at least Five Hundred Thousand Dollars ($500,000)
naming the City as co-insured. The Contractor shall provide
the City with a Certificate of Insurance as evidence of such
insurance coverage.
IX. ASSIGNMENTS. Neither party to this agreement shall
assign this agreement, nor any interest, right or responsi-
bility arising herein, without the written consent of the
other party.
IN WITNESS WHEREOF, thi~gree~etn is signed by the
parties this :/~ day of
' /
ALLIED CREDIT CITY OF BREMERTON
Cont~a~to~ - - z I z j
Attest:
Approved ~ to
BREM
/