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Collection Agreement

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Collection Agreement

File Type: Word      Price: $4.99        


Summary: Sometimes, when all internal collection efforts are exhausted, it becomes necessary to hire an outside agency or collection specialist to recover the debt owed. This collection agreement formalizes such an arrangement and documents the terms and conditions of the agreement including the responsibilities of both parties and remittance / payment directions.


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       The foregoing Collection Agreement is (Company Name) this day of , ________ , by and between (COMPANY NAME) Collection Agency, LLC, located at ________________________________________________, through the authorization of _________________, President, hereinafter known as AGENCY, and , located at , hereinafter known as CLIENT, sets forth the following terms and conditions:

The AGENCY agrees to:

  • Carry out reasonable collection efforts for accounts placed in compliance with all applicable federal, state, and local laws.
  • Remit all monies collected, less any applicable commissions, to the CLIENT by the 15th of each month for all funds received for the previous calendar month, including a monthly statement detailing same.
  • Maintain privacy and confidentiality of any information obtained during the regular course of performing debt collections relative to accounts placed with AGENCY by CLIENT.
  • Provide periodic status reports for all placements, up to and including quarterly activity reports.
  • Notify CLIENT in the event settlement (below authorized percentage) and/or legal remedy is recommended for placed accounts. 

The CLIENT agrees to:

  • Immediately cease all direct collection efforts and provide a copy of any and all documentation that will enable the verification of debt upon request of a debtor or AGENCY.

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