WILLIAMS, CHARLES & SCOTT, LTD. (WCS) will act as the collection agency for The Creditor in regard to collection claims as set forth pursuant to corporate fees outlined in the rates schedule provided. Additionally, other terms of the agreement are as follows.
WCS’ understands that there is great importance for Client retention as well as recovery for Creditor. All efforts will be made to recover the funds due while maintaining the opportunity for continued business relationship between Creditor and its debtor clients. It is imperative for WCS to understand that when “full payment” is not a likely possibility, that creating ‘options’ of payment for the Creditor to decide can greatly help increase their cash flow and profit margins. WCS understands that in all likelihood, it will be competing against other creditors, so it is vital for communication and efforts be optimized to effectuate collection demands.
As the agent of Creditor, WCS is authorized to place claims with an attorney listed and bonded by a reputable Law List Publisher, and in such event WCS will promptly notify Creditor of the name and address of such attorney. Unless expressly authorized by Creditor, no attorney is to commence suit on Creditor’s behalf. WCS’s employment as Creditor’s agent is with the understanding that any attorney with whom WCS may place Creditor’s claim is a direct representative of Creditor and Creditor reserves the right to communicate directly with such attorney. Creditor agrees that WCS won’t be liable for losses incurred by the acts by attorney.
Suit Fees and Court Costs
Suit Fees are the commissions of Local Counsel based upon recovery of an account. These are deducted from WCS’s collection fees as per above. While Counsel reserves the option to request advancement of suit fees from Creditor, all efforts to eliminate said advancement of suit fees on Creditor’s behalf will be effectuated by WCS in earnest, but cannot be guaranteed. WCS will request advancement of Court Costs from Creditor based upon the recommendations of Counsel to initiate suit on behalf of Creditor.
WCS is authorized to endorse for deposit and collection in the name of Creditor, to its “Trust Account”, remittances received on accounts which Creditor has placed with WCS for collection, and deduct from such receipts authorized charges, remitting the difference to Creditor the Friday of the week of twenty one (21) days from clearance of such receipts.
Direct Re-Payments to Creditor
Creditor agrees to pay commissions to WCS, should any debtor, placed for collection by Creditor, pay Creditor directly. Creditor agrees to promptly remit funds to WCS within 30 days upon receipt of invoice sent to Creditor by WCS via standard mail or electronic delivery (fax / email.).
As the agent of Creditor, WCS will work to recover all outstanding funds owed to Creditor. In cases where a settlement offer has been provided to WCS by the debtor entity, WCS will only accept such settlement offer with the express written or verbal approval from Creditor.
Creditor will receive verbal and written updates on all pertinent matters with each account from the staff of WCS. Creditor is able to inquire about placed accounts at any time. Reporting will include, but not be limited to monthly, mailed (or emailed) status reports, individual emails, phone calls, and / or faxes.
Interest fees can be added to each placement account as outlined in the Creditor’s contract and as governed by law. While WCS will work in earnest to recover these fees, it will act on its own accord to recover the principal balance as its primary objective. In such cases where interest fees are recovered, it will invoice Creditor for 100%.
In such an event where the Debtor has signed a personal guarantee for products and/or services rendered by Creditor, WCS will use this contractual obligation to its fullest potential.
Collection fees can be added to each placement account as only outlined in the Creditor’s contract and as governed by law. While WCS will work in earnest to recover these fees, it will act on its own accord to recover the principal balance as its primary objective. In such cases where collection fees are recovered, it will invoice Creditor for ½ of the amount of said, non-principal remittance.
Revocation and Termination
- As the Agent of Creditor, WCS will work to recover all outstanding funds owed to Creditor on a contingency basis. Creditor agrees not to unilaterally revoke any and all claims that it has authorized WCS to work as its’ Agent, unless it has come to the verifiable conclusion that WCS is not working to recover ‘in earnest’ on behalf of Creditor. In such circumstance, Creditor reserves the right for claim revocation and WCS would not be entitled to its’ service fee.
- In such a situation where Creditor wishes to terminate agreement, despite proven recovery efforts effectuated by WCS on behalf of Creditor, Creditor agrees to compensate WCS based upon applicable WCS service fees against the current balance of the account.
- In the event that account is presented for litigation to Creditor and not approved for suit, WCS will charge Creditor 5% (min $250.00) as legal liquidation fee upon the following events being met: a) The debtor remains in business, B) The debtor is domiciled in the US, C) The principal account balance is greater than $3,500.00.
- In such cases where recovery is doubtful or unfruitful legal action is likely, WCS will suggest the account be closed and written off to profit and loss to reduce further Creditor expenditures on the account. In the event that the matter is eventually paid in the future, Creditor agrees to compensate WCS per its commission schedule
Credit Card Payment
WCS is able to introduce the option of debit or credit card payments to your debtors when other recovery means have been exhausted. As with all credit card processing services, there are associated transaction fees. Under these terms, WCS will pass on a 3.5% transaction fee to Creditor.
Return of Merchandise
In the event Creditor accepts the return of merchandise for credit, whether in full or partial satisfaction, Creditor agrees that WCS’ commission will be charged on 1/2 of the applicable WCS collection fee.