HomeMy Public PortalAboutPenn Credit Contract 2010.pdfCOLLECTION AGENCY CONTRACT
This Collection Agency Contract (this
day of 11/\.Ct rC
a Pennsylvania corporation (PCC) and
Agreement) is made and entered into this
, 2010, between Penn Credit Corporation,
the City of —TA .b Pe(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:
1. 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. ASSIGNMENT OF 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)
of 2003.
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 3`d 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 (30) 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 term, 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 (30) 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).
9. 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 soley, 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 10 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.
10. GEORGIA SECURITY AND IMMIGRATION COMPLIANCE ACT
The following employee -number category is applicable to Contractor:
()
500 or more employees
100 or more employees
Fewer than 100 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 of O.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 300-10-1-.08 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: Ct+) O- 4)e c_, (S1,Cinoi
Address: C- 0 , ic 0)c l 6%Q) Aire
Address:`�� f�'� �5 tract A 313 z6
Attn: M.G.xi [& P'
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 CL ED -I • RPORA
By(:
Printed Name: Ri-cku-
Title:
Date:
CLIENT
By:
3&S/22:I
11\ .t66
Printed Name: 1 11/1 1 & tJ
Title: i\I\ C, 13 I (2---6
L i J�--
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
1//,,,- has registered with and is participating in a federal work authorization program [any of the
elec ronic 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 %ti rfc-- ,
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
Penn Cred. rporat'on
Officer or Agent of Contractor
�i
Title of Authorize
Printed Name of Authorized Officer or Agent
P i—r1 flip
SUBSCRIBED AND SWORN
BEFORE ME ON THIS THE ��pp
Z 5 DAY OF Mc,r�% , 20ii5�
Notary Public
My Commission Expires: ..0/29.17-0(0
C@IVINIO W C-ALTH or I'&NNSYLVANIA
Notarial Seal
Amanda S. Messner, Notary Public
Dauphin Boro, Dauphin County
My Commission Expires June 29, 2010
,A4o. ciistion of N
Ct?net
Date: 3/ 2,5boto
SUBCONTRACTOR AFFIDAVIT
By executing this affidavit, the undersigned subcontractor verifies its compliance with
O.C.G.A. §13-10-91, 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: