Terms and Conditions of Collection Services

4. Credit Bureau Reporting (“CBR”): The rates for all accounts set forth above include all required verifications and fees for reporting eligible accounts to a national Credit Reporting Agency (“CRA” e.g., TransUnion). Only accounts that comply with the FDCPA, FCRA, the individual Credit Reporting Agency and all associated laws and regulations, as determined in the sole discretion of CRM, shall be eligible for CBR. No refund, reduction or adjustment shall be issued or applied to any account that is not eligible for CBR or is deemed not reportable by the CRA. Client hereby authorizes CRM to report all eligible accounts to a CRA. Client may revoke this authorization in writing at any time subject to the provisions of “Termination of Contingent Accounts” located within these Terms and Conditions.

5. Legal Proceedings: CRM shall obtain Client’s written authorization prior to the commencement of legal action on an account. CRM is entitled to its full legal collection fee on any and all funds collected, no matter what the source, upon Client’s authorization to proceed with legal action on said account. Any funds recovered by CRM shall be forwarded to Client, less any and all fees and reimbursable costs due CRM, within forty-five (45) days of receipt. CRM shall deduct the cost of credit card and/or ACH processing fees from any remittance due and owing to Client on a legal account.

6. Client Representations and Warranties: Client (a) agrees to provide truthful and accurate information regarding the debt; (b) shall notify CRM prior to assignment if any account assigned to CRM had previously been forwarded or assigned to any other collection agency, attorney or law firm for collection; and (c) shall inform CRM immediately if they receive any notification or correspondence related to a bankruptcy petition affecting any account assigned to CRM. Client shall inform CRM of any and all direct communication it has with a debtor, attorney or other representative related to any account Client has assigned to CRM. The individual signing the Collection Services Application personally guarantees, on behalf of themselves and any company they represent, all payments to CRM as set forth in these Terms and Conditions. The use of a corporate title shall in no way limit the personal liability of such signatory.

6.1 Interest. Client acknowledges and agrees that, upon assignment of an account to CRM, contractual interest, if any, will not accrue on the amount due for said account while with CRM. In other words, the amount due that would satisfy the account will remain static during CRM’s engagement prior to a lawsuit, if any, being instituted on said account.

7. Authorization to Settle and Endorse: Unless otherwise directed, Client authorizes CRM to settle any account for 90% or more of the face value of the account without further consultation with Client if CRM determines, in its sole discretion, that a discounted settlement is in the best interests of the Client, the respective debtor and CRM. CRM has no obligation to offer any debtor a discounted settlement and may impose time limits and expiration dates on any offer made to a debtor for purposes of obtaining resolution of an account. Any settlement for less than the 90% value must be pre-approved by Client. Client authorizes CRM to accept payment and/or to endorse checks, notes, money orders or drafts on its behalf.

8. Judgment Enforcement: Client hereby authorizes the attorney(s) employed, and/or engaged, by CRM, as Client’s agent(s), to proceed on Client’s behalf with whatever legal action they deem necessary to collect on any judgment assigned to CRM for enforcement and collection. Client is responsible for all out of pocket expenses related to the enforcement of a judgment. CRM may require Client to provide an advance payment of anticipated out of pocket costs of enforcement.

9. Termination of Contingent Accounts: CRM shall have the exclusive right to collect on any contingent fee account for eighteen (18) months from the date of its assignment to CRM. After said eighteen (18) month period, Client may terminate an account by providing written notice to CRM. If Client terminates a contingent fee account within eighteen (18) months of its assignment to CRM, Client shall pay a termination fee equal to 25% of the current face value of said terminated account. If Client terminates an account in which an installment payment plan has commenced, then CRM shall be entitled to its full fee for said account. The assignment by Client of an account previously assigned to CRM to another collection agency, attorney or law firm shall be deemed a termination of said account. If Client authorized legal action on an account, such account may not be terminated without approval by the attorney not to be unreasonably withheld, and subject to payment of all Court costs incurred. Notwithstanding anything herein to the contrary, with respect to any account placed by CRM on a debtor’s credit report, CRM shall be entitled to its full fee, less any termination fee paid to CRM by Client, for any payment(s) received by CRM or Client on any such account up through one hundred eighty (180) days following the statutory expiration date of the account listing on such debtor’s credit report.

9.1 Disputed Accounts: For contingent accounts that are disputed by a debtor, Client must confirm the debt is valid after which CRM shall verify the disputed debt by providing the debtor copies of all relevant documentation as submitted to CRM by the Client. The Client, at CRM’s request, shall provide additional documentation to further substantiate the debt and shall also confirm whether Client has received any payments towards the disputed debt and if Client has applied any discounts, credits or offsets to the disputed debt and promptly confirm the current balance due on the debt. If Client should fail to respond to CRM’s request for confirmation of the current balance due within twenty-one (21) days of said request, Client shall be deemed to have terminated the account in accordance with section 9, Termination of Contingent Accounts, herein.

10. Termination of Flat Fee Accounts: Client may terminate a flat fee account at any time and for any reason. No refunds shall be due and owing for any flat fee account terminated by Client.

11. Termination or Discontinuance of Charged-Off Accounts: If Client has assigned a Charged-Off debt account, it must provide to CRM the information required for substantiation of the debt in accordance with Federal, State and/or local law or government regulations. Client expressly understands and agrees that if it fails to provide such information upon request from CRM and, as a result, CRM is unable to respond to a request for substantiation of the account in compliance with 23 NYCRR 1 or other applicable law or government regulation, then CRM has the sole and unfettered right to permanently extinguish that debt account. Upon such occurrence, Client shall owe CRM a termination fee equal to 10% of the current face value of the account.

12. Termination of Services: Either party may terminate all services upon thirty (30) days prior written notice to the other party. The “Termination Date” shall be deemed thirty (30) days from the date of receipt of the notice by the other party. Client’s Termination of Services shall not in any manner whatsoever supersede, negate or relieve Client of their obligations and liabilities as described under Termination of Contingent Accounts and/or Termination or Discontinuance of Charged-Off Accounts.

13. Payment of Fees and Direction of Funds Collected: CRM is entitled to its full fee on any and all funds collected, no matter what the source, following assignment of the account to CRM. Any funds recovered by CRM shall be forwarded to Client, less any and all fees and reimbursable costs due CRM, within forty-five (45) days of receipt. For Flat Fee Accounts, CRM shall deduct the cost of credit card and/or ACH processing from any remittance forwarded to Client. Upon receipt by Client of any funds collected on accounts that have been assigned to CRM, Client shall immediately notify CRM of receipt of said funds. If Client defaults on its obligation to notify CRM as stated herein and/or pay any amounts due CRM within forty-five (45) days of Client’s receipt thereof, CRM shall be entitled to liquidated damages in the amount of 50% of the total amount collected by Client on said account with interest accruing at 1.5% per month on any past due balance from the date of Client’s receipt of said funds. Client shall be responsible for any fees incurred by CRM as a result of a debtor’s returned or unpaid (NSF) check. Notwithstanding anything herein to the contrary, if Client fails to notify CRM of receipt of funds on any account it has assigned to CRM and, as a result thereof, CRM continues collection efforts in violation of the FDCPA, FCRA or any other law or regulation, Client shall be liable for any and all penalties and/or fines levied against CRM in addition to any costs incurred by CRM as a result of CRM’s response to or defense of same.

14. Indemnification: Client shall indemnify and hold harmless CRM and its employees, officers, shareholders, assigns and agents (each, an “Indemnified Party”) from and against any and all claims, losses and expenses of any nature, including legal expenses incurred to enforce CRM’s rights and remedies hereunder, or for investigation, prosecuting or defending any action or threatened action, arising out of or relating to these Terms and Conditions or the transactions contemplated hereunder or the use of proceeds therefrom other than any claims, losses and expenses resulting from CRM’s own negligence and/or willful misconduct. Notwithstanding anything herein to the contrary, if Client provides inaccurate or false information to CRM on any account that CRM reports to a CRA and, as a result thereof, any Indemnified Party is accused, investigated and/or found to be in violation of the FDCPA, FCRA and/or any other applicable rule, law or statute, Client shall be wholly liable for any and all resulting fines, costs and expenses incurred or levied against CRM. This section shall survive termination of services.

15. No Guaranty of Outcome: These Terms and Conditions shall not be construed as a promise or guaranty of any particular outcome with respect to any account assigned to CRM. No matter the outcome, Client remains responsible to perform all of its responsibilities set forth herein.

16. Governing Law: These Terms and Conditions shall be governed by the laws of the State of New York. The provisions of this section shall survive termination of any services.

17. Severability: In the event that any Section or portion of these Terms and Conditions shall be held invalid or unenforceable for any reason, it shall not in any way invalidate, affect or impair the remainder of these Terms and Conditions, it being the intention of the parties that these Terms and Conditions shall be binding upon and enforceable against both parties to the extent permitted by law.

18. Amendment: We have the right to change these Terms and Conditions and will post the changes on our website. Changes will only apply to accounts assigned to us on or after the effective date of any change as related to pricing and fees. All other Terms and Conditions shall apply as in effect at the time the account was assigned to CRM or the subject action was taken on the account.

The Terms and Conditions described on this page are effective as of: January 01, 2023.

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