Commercial Rates & Terms
All Rates Are Contingent
AGENCY will undertake through proper and lawful means the collection of all accounts CLIENT chooses to refer to AGENCY for collection (the “Assigned Accounts”). It is expressly understood that the Assigned Accounts are not concurrently assigned to any other third party for the purpose of collection. Referral of Assigned Accounts to AGENCY shall be at CLIENT’S option. AGENCY agrees to accept for collection all Assigned Accounts referred by CLIENT on the terms and conditions set forth herein.
All rates are contingent. Fees will be due on all accounts collected, whether paid direct to creditor or to agency, or on accounts withdrawn after our demand has been made. Commissions will also be charged on claims settled by the return of merchandise. Cedar Financial (hereinafter known as “Agency”) may retain in its entirety all lawful sums including but not limited to collection fees and interest collected over the principal amount assigned by creditor. A discovery fee (one half the normal rate) will be charged if our efforts reveal an account has been paid prior to our undertaking collection. Agency is authorized to deposit collections and may deduct charges from remittance checks.
CLIENT or AGENCY may terminate this Agreement with or without cause by providing the other party with thirty (30) calendar day’s written notice. AGENCY will cease further collection activity and terminate all Assigned Accounts within thirty (30) calendar days from date of the termination notice. Notwithstanding termination of this Agreement, AGENCY will be entitled to all Fees for any Assigned Account returned to Client. AGENCY has the option to retain all legal files and Assigned Accounts for which the debtor is making regular partial payments or assigned accounts with a status of Promise to Pay (“PRP”) within thirty (30) calendar days of receipt of a termination notice, AGENCY will prepare a final report of the status of all Assigned Accounts at the time of Agreement termination in a format mutually agreed upon by AGENCY and CLIENT.
No legal action will be filed without CLIENT’S authorization. If suit is necessary and recommended by the attorney CLIENT will be informed of the additional charges required for advanced costs and fees. Contingency fee will be courted separately and expected to be higher than the rates described herein to compensate the attorney. CLIENT shall be responsible for all court fees, filing fees and other incidental legal costs reasonably incurred in connection with Authorized Litigation (“Litigation Costs”). AGENCY will invoice CLIENT for its estimate of Litigation Costs at the time of requesting Authorized Litigation. AGENCY shall not be required to initiate Authorized Litigation unless CLIENT has paid AGENCY in full for any invoiced Litigation Costs. If CLIENT does not consent to propose Authorized Litigation, AGENCY will return the Assigned Account relating to such proposed Authorized Litigation without charge.
Scope of services: Creditor desires to employ, and hereby employs, agency to perform collection services on unpaid deficiency balances including but not limited to: any and all commercial (B2B) customer accounts or other customer accounts (interchangeably referred to as debts) under the terms and conditions set forth. Agency’s status is and shall remain as independent contractor.
AGENCY understands and agrees that any information provided by CLIENT on the debtor will be used solely for the purpose of resolving the Assigned Account. CLIENT also understands and agrees that all information provided by AGENCY to CLIENT is proprietary and secret and, therefore, shall remain confidential. Such proprietary information shall include, but is not limited to, fees paid, reports, statements, proposals, contracts
Upon receiving notice, oral or written, that a debtor has petitioned for bankruptcy relief, AGENCY shall obtain the case number, district, type (Chapter) of bankruptcy, the date filed, and the debtor’s attorney’s name and address, and shall communicate such information to CLIENT. Client agrees to immediately report to agency all bankruptcy notices received by client directly.
AGENCY shall not make any appearance, file any court document, or perform any services on such bankrupt accounts except to obtain and provide information to the CLIENT as stated herein.
Payment arrangements and partial payments: In the interest of liquidating debts at the earliest possible time, agency shall be authorized to offer partial payment plans to pay off the debt.
NO RECOVERY, NO FEE. Agency fee is contingent upon successful recovery of the amount paid. An advance non-refundable fee in the amount of $750 is required to initiate our services for any client with a single claim placement valued under USD$10,000. The fee is applied and deducted from any future earned commission by agency.
Statute of limitations: Agency shall not be liable to creditor for the expiration of any applicable statute of limitations on any account.
Blanket settlement: Creditor authorizes agency to compromise or settle any assigned account in full for the assigned or current balance. Any other settlement or compromise must have the approval of creditor.
Either party may assign its rights or delegate or subcontract obligations hereunder without the prior express written consent of the other. AGENCY may unilaterally, and without the consent of CLIENT, assign, delegate or subcontract its rights hereunder to an affiliate or parent company.
Hold harmless: Agency agrees to indemnify and hold harmless creditor and its agents, officers, and employees from and against any and all claims, damages, losses, actions, and causes of action including reasonable attorney’s fees, resulting from and arising out of agency’s efforts. Creditor agrees to indemnify and hold harmless agency and its agents, officers and employees from and against any and all claims, damages, losses, actions, and causes of action including reasonable attorney fees, to the extent caused by creditor’s negligence.
In the event that either party shall be prevented from performing any of its obligations due under the terms of this Agreement by an act of God, by acts of war, terrorism, riot or civil commotion, by an act of State, by strikes, fire, flood, or by occurrence of any other event beyond the control of the parties such as failures or fluctuations in electrical power, heat, light, telecommunication lines or telephones, that party shall be excused from any further performance of the obligations and undertakings set forth under the terms of this Agreement.
CLIENT agrees that he will not disparage AGENCY in any manner harmful to the AGENCY’S business or business reputation. CLIENT further agrees that he will not represent himself or hold himself out as a current employee, consultant or officer of AGENCY, or as holding any other current position with AGENCY. However, nothing herein shall preclude CLIENT from honestly representing himself as AGENCY’S client, provided that CLIENT does not make such representations in such a manner that they would cause a reasonable person to believe that CLIENT is authorized to speak for or act on behalf of AGENCY or that CLIENT retains any active operational role with AGENCY. AGENCY agrees that it will not disparage CLIENT in any manner harmful to the CLIENT’S reputation.
Any dispute arising out of or in connection with this Agreement that cannot be settled through direct discussions between the parties shall be settled by arbitration before three neutral arbitrators (selected from a panel of persons having experience and knowledge of collection services, at least one of which arbitrators shall be an attorney) from the American Arbitration Association in accordance with its Commercial Arbitration Rules. Such arbitration shall be located in Los Angeles, California
If you are directly contacted by the accounts payable/debtor which is in collection process, please advise said debtor to contact Agency (Cedar Financial) to discuss further.