HomeMy Public PortalAbout100_021_PennCreditContractwithInstructions112011 p C d.t
Thank you for participating in GMA's revenue recovery program.We hope this will
provide you with the information needed for Penn Credit to start the process in the
recovery of your outstanding debts.
Instructions:
• Please approve and sign the attached agreement
• NOTE that Exhibits A& B in the agreement relate to the Georgia Security and
Immigration Compliance Act and will be completed and signed by Penn Credit and
returned to you with the final executed agreement
• Complete the contact information below
• Send the signed agreement along with a copy of this completed sheet to Rhett
Donagher at Penn Credit by email at Rhett.Donagher®PennCredit.com or by
regular mail at PO Box 988,Harrisburg, PA 17108-0988
• Penn Credit will return a fully executed copy of the agreement to you for your
records
• Penn Credit staff will contact the"Point of Contact"to begin the process of setting
up your accounts
Required Information:
Government Organization's Name
Type of Debt
Primary Point of Contact
Street Address
City
State
Zip
Contact's Phone Number
Contact's Fax Number
Contact's Email Address
Penn Credit Client Representatives:
Bruce Hower Rhett Donagher
Bruce.Hower®a PennCredit.com Rhett.Donagher®a PennCredit.com
800.800.3328 x3118 800.800.3328 x3003
COLLECTION AGENCY CONTRACT
This Collection Agency Contract(this Agreement) is made and entered into this day of
, between Penn Credit Corporation, a
Pennsylvania corporation (PCC)and (CLIENT)as
part of the Georgia Municipal Association's Debt Collection Service.
WITNESSETH:
WHEREAS, CLIENT provides municipal services to individuals, corporations,
partnerships, and other entities, (Consumers),within Georgia; and
WHEREAS,from time to time,Consumers do not pay CLIENT amounts due to CLIENT
for services rendered (Delinquent Accounts); and
WHEREAS, CLIENT desires for PCC to utilize its efforts to collect past due
amounts from certain Consumers and PCC desires to provide such services, all in
accordance with the terms and conditions set forth in this Agreement.
NOW,THEREFORE, in consideration of the mutual covenants and agreements set forth
below and other good and valuable consideration,the receipt, and sufficiency of which
are hereby acknowledged,the parties agree as follows:
J..SCOPE OF SERVICES
CLIENT retains PCC to collect delinquent accounts,which the CLIENT in its sole
discretion may assign to PCC for collection. Nothing contained in this Agreement
shall be construed as requiring CLIENT to use PCC exclusively or to place any set
number or type of accounts with PCC. PCC agrees to use its best efforts and work
diligently to collect all money due to CLIENT and to forward such money to CLIENT,
all in accordance with the terms and conditions of this Agreement.
2.ASSIGNMENTOF DELINQUENT ACCOUNTS
A. CLIENT shall notify PCC of Delinquent Accounts it wishes to assign to PCC.
PCC will acknowledge receipt of such Delinquent Accounts within five(5)
days of receipt from CLIENT(the"Acknowledgment Date").
B. CLIENT is entitled to withdraw any Delinquent Account,which it may have
placed in error with PCC.Otherwise, Delinquent Accounts referred to PCC
shall remain with PCC for collection until PCC in consultation with CLIENT
determines the account to be uncollectible.
3.PERFORMANCE STANDARDS
A. PCC shall commence collection efforts upon receipt of any Delinquent
Accounts and shall continue such efforts for the entire period such
Delinquent Accounts are held by PCC.
B. PCC shall supervise and direct all collection work, devoting enough
attention and applying the necessary skill and expertise to perform the
work competently and efficiently. PCC shall be solely responsible for the
means, methods,techniques, sequences, and procedures of the collection.
C. PCC shall perform its collection efforts in accordance with all federal, state,
and local laws and regulations including but not limited to the Fair Credit
Reporting Act,Georgia Security and Immigration Compliance Act, and the
Georgia Open Records Act. PCC warrants that it has policies in place to
comply with the"Red Flag Rules" pursuant to the Fair and Accurate Credit
Transactions Act(FACTA)of2oo3.
D. PCC shall provide CLIENT with status reports on all Delinquent Accounts
within 72 hours of written or verbal request for such reports.
4.OBLIGATIONS OF CLIENT
A. At the time CLIENT assigns Delinquent Accounts to PCC, CLIENT shall
provide PCC with the following information with respect to each Delinquent
Account(the"Account Information") provided CLIENT has knowledge of
this Account Information:
i. Payments received by CLIENT on the Accounts;
ii. Notices of any proceedings under the bankruptcy or insolvency
laws of the United States of America or any state relating to the
Accounts;
iii. Notices of any actions or proceedings commenced by any
Delinquent Account Consumer against the CLIENT relating to the
Delinquent Accounts;
iv. Any communications received by CLIENT from the Delinquent
Account Consumer, or the legal representative of any Delinquent
Account Consumer, relating to the Delinquent Account or the
collection of the Delinquent Account; and
v. Any credits or other forgiveness granted by CLIENT with respect to
any Delinquent Account.CLIENT agrees that all such information
shall be true and accurate to the best of its knowledge.
B. CLIENT shall have a continuing obligation to provide PCC any new or
additional Account Information with respect to the Delinquent Accounts as
soon as such information becomes known to CLIENT.
5.COLLECTIONS; PAYMENTS
A. CLIENT agrees to pay PCC, as its sole compensation, a contingency fee
equal to the following:
16.5%for Accounts Aged less than two years from the last date of service
and 19.0%for Accounts Aged greater than two years from the last date of
service on all collections made without the need for litigation.
In addition, PCC agrees that it shall not be entitled to commission on
Delinquent Accounts, which have been withdrawn from PCC pursuant
to Section 2B of this Agreement; except to the extent that the payment
directly resulted from the collection efforts of PCC.Otherwise, PCC shall
be entitled to payment of any contingency fees without limitation as to the
time at which CLIENT receives payment on the accounts.
If the debtor returns to the CLIENT for the purpose of reestablishing utility
service after PCC's collection efforts have been dormant for ninety(90)
days, PCC will not be entitled to its collection fee on those accounts.
B. Collections made by PCC on Delinquent Accounts will be deposited
immediately into a trust account maintained in a reputable bank. Such
collections held in trust by PCC, shall be the property of CLIENT and not
available for any other use by PCC.
C. All collections made by PCC on CLIENT's accounts will be remitted in full,
(Gross Remit), by the fifteenth of each calendar month, accompanied
by a remittance advice.The remittance advice shall contain a list of the
Consumer's name, account number, amount collected, and whether the
payment was made directly to PCC or CLIENT, and fee due PCC.CLIENT
agrees to remit monies due PCC within thirty(30)days of receipt of invoice.
D. Collections made by PCC and remitted to CLIENT by PCC in which a check
is returned unpaid by the bank, shall be reported on the remittance advice
as a minus payment and minus collection fee.CLIENT will notify PCC when
a check is returned by the bank unpaid on a payment made directly to
CLIENT on which CLIENT has paid PCC the collection fee due. PCC will list
such returned check on the next statement as a minus payment and minus
collection fee.
6.INSURANCE REQUIREMENTS
PCC agrees to maintain the following insurance coverage:
A. Personal Injury Liability Insurance, including errors and omissions in the
amount of five million per claim&aggregate per year
B. Comprehensive General Liability Insurance, including contractual liability in
the amount of one million per occurrence,two million aggregate
C. Worker's Compensation and Occupational Disease Insurance, including
Employer's Liability Insurance in the amount of one million each accident/
one million E.L. disease, each employee
D. Automobile Liability Insurance(owned or non-owned) in the amount of one
million Bodily Injury(Each person), one million property damage
E. Twenty-five thousand Surety Bond as required by statute
F. Commercial Crime in the amount of two million limit,two million 3rd Party
G. Ten million excess/umbrella liability
7.TERM
A. This Agreement shall be effective as of the date shown and continue in
effect until either party gives notice of termination. Either party may
terminate this agreement upon giving thirty(3o)days prior written
notice thereof to the other party setting forth the effective date of such
termination.Agency will return all referred accounts within 120 days
after termination of the contract upon written request by CLIENT,with
the exception of accounts currently paying or scheduled to pay within a
reasonable time.Agency will receive its fee on any payments it receives for
CLIENT on retained accounts after termination of this Agreement.
B. The Agreement shall terminate absolutely and without further obligation
on the part of the CLIENT at the close of the calendar year in which it is
executed and at the close of each succeeding calendar year for which it
may be renewed.The total obligation of the CLIENT for the calendar year
of execution and in each calendar year renewal tenn, if renewed, shall be
determined by the services utilized by CLIENT as the purchaser of such
services pursuant to Section 1.The Agreement shall obligate the CLIENT
only for those sums payable during the calendar year of execution or for
those sums payable in the individual calendar year renewal term.Title to
any supplies, materials, equipment or other personal property of PCC or its
subcontractors shall remain in PCC or its subcontractors.
8.CREDIT BUREAU REPORTING
A. PCC will report Delinquent Accounts with an initial placement balance
greater than $50 to the Credit Bureaus(collectively, "Credit Bureau")thirty
(3o)days after the Acknowledgment Date.
B. Based on Account Information PCC receives from CLIENT and information
PCC has in its possession, PCC shall keep Credit Bureau informed of
changes in the status of Delinquent Accounts.
C. Disputed accounts will be reported as disputed in accordance with the Fair
Credit Reporting Act(623(a)(3): Duty to provide notice: If the completeness
or accuracy of any information furnished by any person to any consumer
reporting agency is disputed as to such person by a consumer,the person
may not furnish the information to any consumer reporting agency without
notice that such information is disputed by the customer).
g.INDEMNIFICATION
A. As allowed by Georgia law,CLIENT shall defend, hold harmless and
indemnify PCC, its shareholders, officers and employees against any and
all liabilities, claims, damages, costs,judgments and expenses, including
attorney fees, sought or asserted against PCC, its shareholders, officers
and employees of PCC arising out of the collection activities of PCC if
such liabilities, claims, damages, costs,judgments or expenses are based
primarily or solely, in whole or in part, upon any of the following:
i. Any actions by CLIENT, its officers, employees or contractors,
including any other collection agency; or
ii. Inaccuracy in any Account Information supplied by CLIENT to
PCC, or failure by CLIENT to supply Account Information to PCC,
including the failure to provide updated Account Information as it
becomes available.
B. PCC shall defend, hold harmless and indemnify CLIENT, its affiliates,
shareholders, officers and employees against any and all liabilities, claims,
damages, costs,judgments and expenses, including attorney fees, sought
or asserted against CLIENT, its affiliates, shareholders, officers and
employees of CLIENT arising out of the collection activities of PCC if such
liabilities, claims, damages, costs,judgments or expenses are based or
alleged to be based, in whole or in part, upon any of the following:
i. Any actions by PCC, its officers, employees or contractors; or
ii. Failure by PCC to relay Account Information supplied by CLIENT to
PCC to Credit Bureau.
C. The obligations of CLIENT and PCC under this Section 9 shall be continuing
obligations of CLIENT and PCC, as the case may be, and shall specifically
survive the termination of this Agreement or any other agreement between
CLIENT and PCC.
io. GEORGIA SECURITY AND IMMIGRATION COMPLIANCE ACT
The following employee-number category is applicable to Contractor:
()5oo or more employees
()ioo or more employees
() F ewer than soo employees
Contractor agrees that, in the event Contractor employs or contracts with any
subcontractor(s) in connection with the covered contract, Contractor will secure
from the subcontractor(s)such subcontractor(s') indication of the employee-
number category applicable to the subcontractor.
Contractor attests compliance with the requirements ofO.C.G.A. 13-10-91 and Rule
300-10-1-.02 by the execution of the contractor affidavit attached as Appendix A
as shown in Rule 300-10-1-.07, or a substantially similar contractor affidavit, which
document is attached to and made a part of the contract.
Contractor agrees that, in the event Contractor employs or contracts with any
subcontractor(s) in connection with the covered contract, Contractor will secure
from such subcontractor(s)attestation of the subcontractor's compliance with
O.C.G.A. 13-10-91 and Rule 300-10-1-.02 by the subcontractor's execution of
the subcontractor affidavit shown in Rule 300-to-1-.o8 or a substantially similar
subcontractor affidavit, and maintain records of such attestation for inspection
by the City at any time. Such subcontractor affidavit shall be made a part of the
contractor/subcontractor agreement."
11. MISCELLANEOUS
A. PCC shall not transfer, assign, sell, or convey any Delinquent Accounts to
any other collection agency without the prior written consent of CLIENT.
B. All notices required to be sent under the terms of this Agreement shall be
sent to CLIENT and CLIENT's legal regional council addressed:
CLIENT
Address
Address
Attn
and to PCC addressed:
Penn Credit Corporation
916 South 14th Street
Harrisburg, PA 17104
Attn: Richard S.Templin, President
Such designations may be changed at any time by either party giving
written notice of a new name and/or address.
C. This Agreement shall be construed under the laws of the State of Georgia.
D. Wherever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law. If any
such provision of this Agreement shall be determined to be invalid or
unenforceable, such provision shall be ineffective to the extent of such
prohibition or invalidity without invalidating or otherwise affecting the
remaining provisions of this Agreement.
E. This Agreement may be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original and all of which
counterparts of this Agreement taken together shall constitute but one and
the same instrument.
F. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, successors and assigns.
G. Headings used in this Agreement are for convenience only and shall not
affect the construction of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed and entered into this
Agreement as of the date first set forth above.
PENN CREDIT CORPORATION
By
Printed Name
Title
Date
CLIENT
Printed Name
Title
Date
Approved as to form
By City Attorney
Exhibit A
CONTRACTOR AFFIDAVIT AND AGREEMENT
By executing this affidavit, the undersigned contractor verifies its compliance with
O.C.G.A. §13-10-91, stating affirmatively that the individual, firm, or corporation
which is contracting with the City of has registered with
and is participating in a federal work authorization program [any of the electronic
verification of work authorization programs operated by the United States Department
of Homeland Security or any equivalent federal work authorization program operated
by the United States Department of Homeland Security to verify information of newly
hired employees, pursuant to the Immigration Reform and Control Act of 1986(IRCA),
P.L. 99-603], in accordance with the applicability provisions and deadlines established
in O.C.G.A. §13-10-91.
The undersigned further agrees that,should it employ or contract with any subcontractor(
s) in connection with the physical performance of services pursuant to this contract with
the City of ,contractor will secure from such subcontractor(
s) similar verification of compliance with O.C.G.A. §13-10-91 on the Subcontractor
Affidavit provided in Rule 300-10-01-.08 or a substantially similar form.
Contractor further agrees to maintain records of such compliance and provide a
copy of each such verification to the City of at the time the
subcontractor(s) is retained to perform such service.
EEV/Basic Pilot Program User Identification Number
BY:Authorized Officer or Agent Date
Penn Credit Corporation
Title of Authorized Officer or Agent of Contractor
Printed Name of Authorized Officer or Agent
SUBSCRIBED AND SWORN
BEFORE ME ON THIS THE
DAY OF
Notary Public
My Commission Expires
Exhibit B
SUBCONTRACTOR AFFIDAVIT
By executing this affidavit, the undersigned subcontractor verifies its compliance with
O.C.G.A. § 13-1 0-91, stating affirmatively that the individual, firm or corporation
which is engaged in the physical performance of services under a contract with the
Georgia Municipal Association, Inc. on behalf of the City of
has registered with and is participating in a federal work authorization program [any
of the electronic verification of work authorization programs operated by the United
States Department of Homeland Security or any equivalent federal work authorization
program operated by the United States Department of Homeland Security to verify
information of newly hired employees, pursuant to the Immigration Reform and
Control Act of 1986(IRCA), P.L.99-603], in accordance with the applicability provisions
and deadlines established in O.C.G.A. §13-10-91.
EEV/Basic Pilot Program User Identification Number
By
Title
Date