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Creditor Advocates operates primarily as a third party debt collector working on behalf of business clients to collect their delinquent and defaulted receivables on a contingency basis. Business clients (“Clients”) are businesses with delinquent or defaulted receivables (“Accounts”) owing from consumers or other businesses (“Debtors”), of which Accounts were obtained by either 1) the extension of credit offered in connection with a product or service, and/or 2) allowable by law. This General Collections Terms of Service provides additional details not otherwise provided in the Collection Agreement or other agreements.
Payment Negotiation. Client agrees to give Creditor Advocates, and its agents, full and exclusive authority to accept, negotiate, and recover amounts due, and accept payment devices in Client’s name for the purpose of recovering any amounts due on such Accounts.
Fees and Commissions. Based on the amount of money received due to collection efforts (“Collections”), Creditor Advocates charges a commission rate based on the percentage of principal amount received, whether collected at its location, the Client’s location, or otherwise. Creditor Advocates may offer different rate structures depending on the account’s age since origination, owing balance, or if the account was placed with another agent, such as a law firm. The Client’s rate will be the highest applicable fee specified in the Collection Agreement. The rate will apply to any amounts paid to the date and active payment plans as of the date of withdrawal. Debtors may be charged interest or fees for non-sufficient funds, payment transaction fees, collection fees, convenience fees, attorney fees, court costs, writ of execution, garnishment costs, process server, legal fees and other expenses (“Interest and Fees”) incurred during the recovery of the Account and permitted in the agreement creating the debt or allowable by law. Collections on Interest and Fees shall be retained in whole by Creditor Advocates, or its agents, prior to remittance to Client. Clients may elect to instruct Creditor Advocates to take special action on specific accounts on which it would be charged for the cost of providing that specific action.
Payment Remittance. When Debtor Account Payments are received, they will be itemized and summarized into an “Invoice Remit” and sent along with a consolidated payment on a monthly basis. For each principal payment amount received at Creditor Advocates, or its agents, the payment amount minus its commissions, or the net amount, will be Due Client. For each payment received at the Client’s location, the commission amount will be Due Agency. Any previously remitted net payment amount or commissions collected which subsequently resulted in an NSF, chargeback, refund, or other payment credits (“Returned Payment”) will offset Due Agency or Due Client depending on the primary party affected. Any Returned Payments at the Client’s location after placement or in which the amount received was $0.00 and would increase the balance of the Account shall be added to the owing balance. Any Interest or Fees collected at the Client’s location shall be Due Agency in whole. Creditor Advocates will hold Client’s share of amounts collected in Trust until remitted. Client agrees to grant Creditor Advocates a security interest in, as well as a right of offset against any Collections. The remittance amount to Client shall be the net amount of Due Client offset by the amount Due Agency and any previous Client amount due. If Due Agency plus any Client Amount Due exceeds Due Client, then the Client shall be billed for those amounts.
Credit Terms. Net 30 days from invoice date. You grant us Recovery Authorizations concerning funds you are obligated to repay us.
High Risk Transactions. Clients with little history, low number of Accounts placed for collections, high number of disputed accounts, high number of returned accounts based on client requests, or other risk factors may contribute a Client to being categorized as potentially High Risk. Creditor Advocates reserves the right to alter credit or remittance terms, at its option and without advanced notice, for high value payment transactions on Accounts from High Risk Clients or any payment above $10,000. If terms to mitigate the risk cannot be agreed upon between Creditor Advocates and Client, the payment will be returned to the Debtor or forwarded to the appropriate government entity.
Client Collection Efforts. After an Account has been placed for collections, Client agrees to cease further collection efforts, including but not limited to calls or other notifications sent to Debtor. Debtors should be referred to Creditor Advocates for all communications concerning the Debtor’s Account placed for collections. Client can provide information concerning the debt upon the Debtor’s request, at its option.
Account Placement, Validation and Verification. Before collections begin, Clients are sent a summary and access to view Accounts Placed. Client shall verify the validity of Accounts placed for collection and promptly notify Creditor Advocates upon detection of any inaccuracies.
Prompt Notification of Account Changes. Client shall notify Creditor Advocates promptly and within 30 days upon receipt of payment received at Client’s location or any other account adjustments affecting the balance or status of the Account.
Supporting Documentation. Upon request, Client agrees to provide documentation supporting the amount due for any given Account for the purpose of responding to a dispute, inventory audits, or compliance reviews.
Account Overpayments. Debtor Account Payments received by Creditor Advocates resulting in an overpayment shall be either applied to another related Creditor Advocates Debtor’s Account, refunded by Creditor Advocates, or follow the applicable Unclaimed Funds process. For payments received by Client resulting in an overpayment and the Account is in a legal status, Client shall confirm the Account balance with Creditor Advocates before following their internal refund process.
Unclaimed Funds. Client agrees and allows Creditor Advocates to follow Minnesota’s, or the applicable state’s, Unclaimed Funds process for uncashed checks to Clients and Debtor overpayments on their Accounts.
Portal Users. Creditor Advocates provides online portal access for its Client’s use to aid in the management of their accounts. Clients shall approve user access to its data and inform Creditor Advocates when a user’s access should be withdrawn.
Taxes. Client is responsible for determining any and all taxes assessed, incurred, or required to be collected, paid, or withheld for any reason on all Collections.
Termination. Clients reserve the right to cancel and have their accounts returned at anytime. Upon written notice of termination to Creditor Advocates, all Accounts will be closed and returned within 30 days. Accounts with active payment plans or under active litigation will remain open unless otherwise specified by Client. In this case, Client agrees to pay the Fees and Commissions and any costs associated with withdrawal of Accounts under active litigation at the time of request. Creditor Advocates reserves the right to cancel and return Client’s Accounts at anytime, for any reason, without penalty, and without further costs to Client.
Indemnification. Creditor Advocates agrees to indemnify and hold Client harmless from any and all claims to the extent such claims were caused by the Creditor Advocates' negligent acts, errors or omissions and those of its owners, officers, employees, contractors, subcontractors or consultants or anyone for whom the Creditor Advocates is legally liable, and arising from the services that are the subject of this Agreement. Client must notify Creditor Advocates promptly and within 7 days of any such claim. Creditor Advocates is not obligated to indemnify Client in any manner whatsoever for Client's own negligence. The Client agrees to indemnify and hold Creditor Advocates harmless from any and all claims to the extent such claims were caused by the Client's negligent acts, errors or omissions and those of its owners, officers, employees, contractors, subcontractors or consultants or anyone for whom the Client is legally liable, and arising from the services that are the subject of this Agreement. The Client shall indemnify and hold Creditor Advocates harmless from any and all claims related to amounts not permitted by law placed for collections. The Client is not obligated to indemnify Creditor Advocates in any manner whatsoever for Creditor Advocates' own negligence.
Representations and Warranties. Client represents and warrants that it is a legal entity organized, validly existing and in good standing under the laws of the state of its organization, and whose receivables are expressly authorized and permitted by law. Creditor Advocates represents and warrants that it is a legal entity organized, validly existing and in good standing under the laws of the state of its organization.
Health Information Privacy and Security. Creditor Advocates and Client agree that they will be responsible for complying fully with the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), and all the rules and regulations thereto governing privacy and security. The parties further agree to take such actions, including without limitation entering into the Business Associates Agreement, as necessary or advisable to ensure that terms will comply with HIPAA. Client agrees to adopt Creditor Advocates HIPAA Business Associate Agreement, unless and until superseded by another agreement.
Compliance with 501(r). Client will notify Creditor Advocates if their Accounts require compliance with 26 US Code 7805 Par. 2. Section 1.501(r). If applicable, the parties further agree to take such actions, including without limitation amending agreements, as necessary or advisable to ensure compliance with 26 US Code 7805 Par. 2. Section 1.501(r).
Offices, Records and Books of Account. Client shall provide Creditor Advocates at least sixty (60) days written notice prior to changing its “principal place of business” (as such terms are used in the UCC) and the office where it keeps its records concerning Accounts placed with collections.
ESign Disclosure and Consent. ESign Digital Signature allows Creditor Advocates to provide Client with an electronic means to complete a signature. Client agrees to read and consent to Creditor Advocates ESign Disclosure and Consent.
Privacy and Confidentiality. Client and Creditor Advocates agree not to disclose Confidential Information received by the other party, including non-public information, trade secrets, business methods, procedures, reports, except except to the extent disclosure is required by Applicable Law or necessary to perform its obligations.
Retention. Creditor Advocates shall retain certain Account information to comply with applicable laws governing its services. Maintenance of security around this information shall survive termination.
Severability. Wherever possible, each provision of the Collection Agreement, other agreements, or terms of service shall be interpreted in such manner as to be effective and valid under applicable law. If any provision is prohibited by or invalid under such law, then such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions.
Survivability. The following sections shall survive termination: Credit Terms, Supporting Documentation (for compliance purposes), Unclaimed Funds, Taxes, HIPAA, Retention, Privacy and Confidentiality, and Severability.