Debt Collection Agreement Form

DEBT COLLECTION AGREEMENT FORM

This Debt Collection Agreement ("Agreement") is made and entered into as of Effective Date: by and between Collector Name: , an entity type: Individual Organization, Principal Address: ; and Client Name: , an entity type: Individual Organization, Principal Address: .

RECITALS

WHEREAS, Client is the owner or assignee of certain delinquent receivables and accounts described in Schedule A and desires to retain Collector to pursue collection of such receivables on the terms set forth herein; and

WHEREAS, Collector is duly licensed and experienced in the collection of delinquent accounts and represents that it will perform collection services in compliance with applicable federal, state and local laws and regulations governing debt collection; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the collection, remittance and disposition of collected funds.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Accounts" means the delinquent receivables identified by Client and accepted by Collector for collection pursuant to this Agreement, as initially described in Schedule A and supplemented from time to time in writing.

1.2 "Net Collections" means total cash collected by Collector on an Account less only: (a) refunds to payors required by law, (b) payments to third-party vendors authorized in writing by Client, and (c) payment card processing fees actually incurred in processing card payments.

2. APPOINTMENT; SCOPE

2.1 Appointment. Client hereby appoints Collector as its agent to collect the Accounts on the terms set forth in this Agreement. Collector accepts such appointment and agrees to use commercially reasonable efforts to collect the Accounts.

2.2 Authority. Collector is authorized to contact debtors, negotiate settlements, obtain payments, enter into payment plans on behalf of Client where specifically authorized in writing, and to endorse checks or other instruments delivered in payment of an Account for deposit to a Collector-controlled account pending remittance. Collector shall not compromise the principal balance of any Account for an amount in excess of the settlement authority set forth in writing by Client without prior written approval.

3. COLLECTION PROCEDURES

3.1 Account Submission. Client shall deliver to Collector a list of Accounts in electronic or hard copy form in the format agreed by the parties. Collector may, in its sole discretion, reject any Account within ten (10) business days of receipt by providing written notice to Client and shall return rejected Account files with reasons for rejection.

3.2 Collection Standards. Collector shall conduct collections in a commercially reasonable manner, consistent with industry practices and in full compliance with all applicable laws and regulations, including restrictions on communications and use of consumer information.

4. FEES, RETAINERS AND REMITTANCE

4.1 Remittance. Collector shall remit to Client Net Collections attributable to Accounts, less Collector's fees and authorized deductions, on a monthly basis unless otherwise agreed in writing. Remittances shall be accompanied by an accounting showing gross collections, itemized deductions, and Net Collections for each Account.

4.2 Retainer. Client shall pay Collector a retainer in the amount of Retainer Amount: if required by Collector. The retainer shall be applied to fees and expenses in the order agreed and any unused portion refunded upon termination consistent with Section 10.

5. REPORTING, RECORDS AND AUDIT

5.1 Reporting. Collector shall provide Client with periodic reports detailing collections activity, charges, and disposition of each Account in a format reasonably acceptable to Client.

5.2 Records. Collector shall maintain complete and accurate records of all collection activity and shall retain original documents and settlement agreements for a minimum of three (3) years following final disposition of the Account or such longer period as required by applicable law.

6. COMPLIANCE WITH LAW

Collector shall comply with all applicable federal and state laws governing debt collection, privacy and consumer protection in the performance of its duties, including but not limited to requirements concerning permissible communications with debtors and the handling of personal information. Collector shall immediately notify Client of any regulatory inquiry or claim arising out of Collector's collection activities.

7. CONFIDENTIALITY

Each party shall keep confidential all non-public information obtained from the other party in connection with this Agreement and shall use such information solely for performance under this Agreement. This obligation shall not apply to information that is publicly available other than by breach of this Agreement or that is required to be disclosed by law.

8. INDEMNIFICATION; INSURANCE

8.1 Indemnification by Collector. Collector shall indemnify, defend and hold harmless Client from and against any and all losses, liabilities, damages, judgments, and expenses (including reasonable attorneys' fees) arising from Collector's gross negligence, willful misconduct, or material breach of this Agreement.

8.2 Indemnification by Client. Client shall indemnify, defend and hold harmless Collector from and against liabilities arising from the inaccuracy of account information supplied by Client, including the validity or enforceability of the underlying debt, except to the extent caused by Collector's misconduct.

9. TERM; TERMINATION

9.1 Term. This Agreement shall commence on the Effective Date and continue for an initial term of Term Length: unless earlier terminated as provided herein.

9.2 Termination. Either party may terminate this Agreement upon thirty (30) days' prior written notice to the other party. Termination shall not affect obligations accrued prior to the effective date of termination, including payment of fees owed to Collector for collections made prior to termination.

10. NOTICES

11. AMENDMENT; WAIVER; COUNTERPARTS

No amendment to this Agreement shall be effective unless made in writing and signed by both parties. No waiver of any breach shall be effective unless in writing. This Agreement may be executed in counterparts, each of which shall be an original and all of which together shall constitute one instrument.

12. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

12.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Governing State: without regard to its conflicts of law principles.

12.2 Entire Agreement. This Agreement, together with any schedules or addenda executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, whether written or oral.

12.3 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable by a court of competent jurisdiction, such provision shall be severed and the remainder of the Agreement shall remain in full force and effect.

13. MISCELLANEOUS PROVISIONS

13.1 Relationship of Parties. Collector is an independent contractor and nothing contained herein shall be construed to create a partnership, joint venture, agency other than as set forth in this Agreement, or employer-employee relationship between the parties.

13.2 Assignment. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party, provided that Collector may assign this Agreement to an affiliate or in connection with a sale of substantially all of its assets without Client's consent.

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