Fidelis Recovery Management, LLC

Fidelis Collection Contract


RECEIVABLES COLLECTION AGREEMENT

 

This Agreement is made this  (the “Effective Date”), by . (the “Client”) and (the “Collector”).

CLIENT INFORMATION

Business Legal Name:  

Physical address:   

City / State / Zip:     

Contact name:    Position:     

Phone:   E-Mail:    

Website:      

 


COLLECTOR INFORMATION

Business Legal Name:  Fidelis Recovery Management, LLC State of Incorporation/Organization:  Georgia

Physical address: 2221 New Market Parkway, Ste 108           City:  Marietta  State: GA    Zip:  30067

Mailing address: 2221 New Market Parkway, Ste 108            City:  Marietta   State: GA    Zip:   30067

Date business started:  6/3/2013                                                 Federal ID or EIN#: 46-2892707

Contact name:  Adam Elder                                                       Position:      President

Phone:  (404) 800-5270               E-Mail: a.elder@fidelisrecovery.com    

 


  1. RECEIVABLES COLLECTION AGREEMENT

Collector shall provide, for and on behalf of the Client, collection services in respect of Claims in accordance with all the terms and conditions set forth herein.


  1. DEFINITIONS

As used herein, the following terms shall have the following meanings:

“Claim(s)” – means the delinquent accounts referred by the Client to Collector for collection pursuant to this Agreement.
“Collector” – means Fidelis Recovery Management, LLC.
“Commission(s)” – means the amounts to which Collector shall be entitled, which are contingent fees based upon a percentage of the Collections received on Claims and are described in Section 5 below.
“Collections” – means the aggregate proceeds collected by Collector in payment of a Claim.
“Nonpaying Claim(s)” – means any Claim not subject to a payment arrangement or that has not had a payment made on the Claim for ninety (90) days.
“Recalled Claim(s)” – means Claims the Client has recalled from Collector in accordance with the terms of Section 3 below.
“Trust Account” – means accounts segregated from accounts containing operating funds.


  1. ASSIGNMENT OF CLAIMS
    1. COLLECTION ACTIVITIES. Client is responsible for providing to Collector complete account information on Claims.
    2. PREVIOUSLY PLACED CLAIMS. All Claims heretofore and hereafter placed by the Client with Collector shall be placed subject to the terms and conditions of this Agreement.
    3. COLLECTION EFFORTS. Collector will exert diligent efforts to collect, all Claims held by Collector for collection in accordance with ethical and legal collection practices during the entire term of this Agreement and during all periods during which Collector is providing collection services for any Claims.
    4. Client may at any time and from time to time recall any Claim that is a Nonpaying Claim and that has not been referred for litigation.  Any recall of a Claim must be requested by the Client in writing (the “Recall Notice”). Collector shall receive a Commission on any payment made on a Recalled Claim within thirty (30) days of the date of Recall Notice. Collector will, within five days following the date of the Recall Notice, return to Client any documents received from Client relating to any Recalled Claim. Collector shall have the right to recover any costs of litigation if Collector and Client determine that a Claim referred for litigation may be recalled.
    5. ADDITIONAL ASSISTANCE. During the term of this Agreement, and for one year following the date on which Collector ceases collection efforts on all Claims, Collector will provide Client with any assistance which Client may request regarding any Claim, whether open, returned or recalled.  Such assistance is expected to include answering questions regarding Collector’s contacts with debtors, preparing and filing satisfactions, releasing garnishments and liens, etc.
    6. REASSIGNMENT OF CLAIMS. Any Claim closed and returned by Collector or recalled by Client may be assigned by Client with a secondary agency for additional collection efforts.
    7. PROPRIETARY RIGHTS. All Claims placed by Client with Collector are, and shall continue to be, the exclusive property of Client and are placed with Collector only for the purpose of Collections, unless the Client is located in a “right of assignment” state.  In the event the Client is located in a state that is a “right of assignment” state, the Collector shall not proceed with the collection of a Claim until the Claim has been assigned to the Collector pursuant to state law.  Collector will reassign to Client, within 5 days of the Recall Notice, any Recalled Claim that was previously assigned by Client to Collector pursuant to this paragraph.  Collector will reassign to Client, within 5 days of the termination of this Agreement (or within six months of such termination with respect to any Claims that Collector continues to collect pursuant to Section 4), all Claims that were previously assigned by Client to Collector pursuant to this paragraph.
    8. INSOLVENCY OF OBLIGOR. In the event that any proceeding is filed under the Bankruptcy Code by or against any obligor under a Claim after the placement of the Claim with Collector, the Collector shall promptly return such Claim to Client upon Collector’s notice of the proceeding and will notify Client of all pertinent details of such proceeding (i.e. case number, chapter, court district and division, date filed, etc.).
    9. LEGAL PROCEEDINGS. Collector shall not institute any legal proceeding on any Claim or refer any Claim to an attorney without the prior written consent of  
    10. COURT COSTS. If legal proceedings are approved on a Claim as provided in paragraph 3.9, Client shall pay the court costs. 

      4. TERMINATION

  1. TERM. The term of this Agreement shall commence upon the Effective Date and shall continue until terminated pursuant to Section 4.2 below.
    1. TERMINATION. This Agreement may be terminated as follows:
      1. NON-PERFORMANCE. By any party immediately upon the failure of the other party to perform any term, covenant or condition contained in this Agreement, including, but not limited to, timely remittances and payments to Client.
      2. MISREPRESENTATION. By any party immediately if any representation, covenant or warranty made by the other party in this Agreement, or any written report, certificate or other instrument in writing furnished to the terminating party, shall have proved to have been inaccurate in any material respect as of the date or dates with respect to which it is deemed to have been made.
      3. INSOLVENCY. By any party immediately if the other party shall have applied for or consented to the appointment of a custodian, receiver, trustee or liquidator of all or a substantial part of its assets; a custodian shall have been appointed with or without consent of the other party, the other party is generally not paying its debts as they become due; has made a general assignment for the benefit of creditors; has been adjudicated  insolvent; or has filed a voluntary petition in bankruptcy, or a petition or an answer seeking reorganization or an arrangement with creditors or to take advantage of any insolvency law, or an answer admitting the material allegations in a petition in any bankruptcy, reorganization or insolvency proceeding; or taken corporate action for the purpose of effecting any of the foregoing; or an order, judgment or decree shall have been entered, without the application, approval or consent of the other party by any court of competent jurisdiction approving a petition seeking reorganization of the other party, or appointing a receiver, trustee, custodian or liquidator of the other party, or a substantial part of its assets and such order, judgment or decree shall have continued un-stayed and in effect for a period of forty-five (45) consecutive days; or a petition in bankruptcy shall have been filed against the other party and shall not have been dismissed for a period of thirty (30) consecutive days, or if an Order for Relief has been entered under the Bankruptcy Code, or if the other party shall have suspended the transaction of its usual business.
      4. NOTICE. By Client upon 30 days’ prior written notice to Collector.

EFFECT TERMINATION. In the event of the termination of this Agreement, unless such termination was by Client pursuant to paragraphs 4.2.1., 4.2.2. or 4.2.3., Client agrees to allow Collector to continue collection services, and to receive the Commissions agreed upon herein, on all Claims which are in repayment or have documented payment arrangements for a period no longer than six months following the date of termination.  


            5.   COMMISSIONS AND PAYMENTS

Date of Service:

Percentage Rate

Settlement Percentage

Less than 1 Year

35%

80%

1 – 2 years

40%

70%

2+ Years

45%

Open

  1. AGE OF CLAIM. As used in the table above, “age of claim” is based upon the record date of last payment or, if no such date is available, the original open date/ or contract date.
  2. COMMISSION. The Collector’s Commission for its services hereunder (on each Claim shall be the applicable Percentage Rate) set forth in the table above (based upon the age of the Claim as set forth in the table above) multiplied by the Collections on such Claim, whether collected by Collector or paid directly to Client on Claims placed with Collector. The Collector’s Commission covers all Collector costs and expenses including but not limited to: salaries of all employees of Collector in all functions, telephone, letter, and mailing costs, costs for reporting delinquent accounts receivables to credit repositories, costs for purchase of credit bureau reports and consumer information, costs associated with computer operations and the maintenance of records; insurance premiums, bank charges, and costs charged by state agencies.
  3. DIRECT PAYMENTS. Client will provide Collector with electronic media current statements of all direct payments on Claims submitted to the Collector hereunder and made to Client, it being understood that in computing the Collector’s Commission, credit will be given to Collector for such direct payments
  4. SETTLEMENT. Collector is authorized to make a cash settlement on any Claim placed with Collector that is for no less than (the applicable Settlement Percentage (based upon the age of the Claim as set forth in the table above) of the outstanding balance of such Claim provided the settlement amount is paid within sixty (60) days from the date the settlement is reached and the Claim is more than six months delinquent.  All other settlements must receive prior written approval of Client, except if such settlement is made in court and is approved, in person or over the telephone, by an authorized Client representative.

        6.  TRUST ACCOUNTING

  1. Upon receipt of funds obtained as a result of collection services hereunder, Collector will immediately deposit such funds in a segregated Trust Account maintained in a reputable bank insured by the FDIC and such funds shall be held in trust by the Collector as the sole and exclusive property of Client. Such funds shall not be used or be available for use by Collector for any purpose whatsoever.
  2. By the fifth (5th) day of each month, in arrears, the Collector shall remit to the Client all amounts collected by Collector on all Claims during the previous month, including a detailed report by Claim of payment activity and an invoice for all Commissions earned and court costs incurred during the prior month. Client shall remit to Collector, within thirty (30) days of receipt of Collector’s report and invoice, all Commissions and court costs due Collector pursuant to the terms hereof.
  3. Collector’s trust account records shall be available for inspection by Client or its agents at any time during normal business hours and the Collector hereby grants to Client permission for Client employees or authorized Client agents to enter the Collector’s premises during the term of this Agreement, and for one year following the date on which Collector ceases collection efforts on all Claims, for the purpose of reviewing such records and making extracts therefrom and copies thereof during normal business hours. 

         7. REPRESENTATIONS, COVENANTS AND WARRANTIES

  1. COMPLIANCE. Collector has obtained and shall keep in place all licenses and permits required by applicable federal, state and local laws and regulations, has posted and will keep in place all bonds required by applicable federal, state and local laws and regulations, has complied and will comply with all applicable federal, state and local laws and regulations, including without limitation those required of collection agencies, and is and will remain a duly licensed collection agency.  Collector shall not use any method prohibited by applicable law or regulation in collecting Claims.
  2. STATUS Collector is duly organized, validly existing and in good standing under the laws of the state of its formation. This Agreement has been duly authorized, executed and delivered by Collector and Collector has the requisite power and authority to execute, deliver and perform this Agreement.  This Agreement constitutes the valid, legal and binding agreement of Collector, enforceable against Collector in accordance with its terms.
  3. IMDEMNITY.
    1. Client shall indemnify and hold harmless Collector, its directors, agents, employees, servants, and officers against and in respect of any and all liabilities, costs, expenses (including reasonable attorney’s fees), judgments, damages, claims, demands, actions, or proceedings, by whomsoever asserted, including, without limitation, account holders with respect to Claims, any person or persons who prosecute or defend any action or proceedings, representative of or on behalf of a class or interest group, or any governmental instrumentality, body or agency, department or commission, or any administrative body or agency having jurisdiction pursuant to any applicable statute, rule, regulation, order or decree, arising out of, connected with or resulting from any breach by Client of any its representations, warranties, covenants or agreement under this Agreement or the negligence of Client in connection with this Agreement.
    2. Collector shall indemnify and hold harmless Client, its agents, employees, servants, officers and investors against and in respect of any and liabilities, costs, expenses (including reasonable attorney’s fees), judgments, damages, claims, demands, actions, or proceedings, by whomsoever asserted, including, without limitation, account holders with respect to Claims, any person or persons who prosecute or defend any action or proceedings, representative of or on behalf of a class or interest group, or any governmental instrumentality, body or agency, department or commission, or any administrative body or agency having jurisdiction pursuant to any applicable statute, rule, regulation, order or decree, arising out of, connected with or resulting from any breach by Collector of any of its representations, warranties, covenants or agreement under this Agreement, or any action or inaction by Collector, its agents, employees, servants or officers undertaken during the course of executing its duties.
  4. INSURANCE. Collector shall, during the term of this Agreement and for one year following the date on which Collector ceases collection efforts on all Claims, maintain in effect: an Error and Omissions Liability Policy with coverage in an amount of $1,000,000 per occurrence, a Blanket Crime Bond (Employee Fidelity Policy) with coverage in the amount of $1,500,000, and General Commercial Liability and Workers Compensation coverage in such amounts determined by the Collector.  Collector shall provide Client with certificates of insurance and copies of policies and bonds upon request.
  5. REPORTS. Collector shall submit to Client such periodic or other reports as the Client shall reasonably request.  Collector shall make available to Client for review all forms, letters and other written correspondence used to communicate with Claim obligors, as well as written materials and procedures which specifically pertain to the collection of Client Claims.
  6. AUDITS AND INSPECTIONS. Collector shall maintain its records as to each Claim placed by Client with Collector in such a manner as to be reviewed by Client.  The Collector’s premises and records shall be available for inspection by Client or its agents during normal business hours and the Collector hereby grants to Client permission for Client employees or authorized Client agents to enter the Collector’s premises with five days’ prior notice for the purpose of reviewing such records and making extracts therefrom or copies thereof and for evaluating Collector’s performance.

  1. CONFIDENTIALITY

Each party (as “Recipient”) may have access to, and each party (as “Owner”) may provide to the other party, information that the Owner regards as confidential or proprietary. “Confidential Information” includes information of a commercial, proprietary or technical nature and, with respect to the Client, information related to the obligors under Claims.  Confidential Information must be held in confidence and disclosed only to those employees or agents whose duties reasonably require access to such information. Recipient shall protect the Owner’s Confidential Information and prevent the unauthorized use, disclosure or duplication of such Confidential Information. In the event of any disclosure or loss of, or inability to account for, any of owner’s Confidential Information, Recipient must promptly notify Owner in writing. If Recipient is required by a court or governmental authority having proper jurisdiction to disclose any Confidential Information, Recipient must promptly provide to the Owner notice of such request to enable the Owner to seek an appropriate protective order.  Recipient is required to develop appropriate security measures for the proper storage, disposal and destruction of Confidential Information.  Upon expiration of Recipient’s limited right to use the Confidential Information or the termination of this Agreement, Recipient must return all physical embodiments thereof to Owner or, with Owner’s written permission, Recipient may destroy the Confidential Information.


  1. MISCELLANEOUS
  1. GOVERNING LAW. This Agreement shall be governed by and construed in accordance by the laws of the State of Georgia, without reference to conflicts of law principles. In the event that any legal proceedings are commenced with respect to any matter arising under this Agreement, the parties specifically consent and agree that the courts of the State of Georgia and/or the Federal Courts located in the State of Georgia will have exclusive jurisdiction over each of the parties and over the subject matter of any such proceedings, and that the venue of any such action will be in Fulton County, Georgia.
  2. NOTICE Any notice required or permitted hereunder shall be in writing and shall be deemed to have been duly given (i) upon hand delivery, (ii) on the third day following delivery to the U.S. Postal Service as certified mail, return receipt requested and postage prepaid, (iii) on the first day following delivery to a recognized overnight courier service, fee prepaid and return receipt or other confirmation of delivery requested, or (iv) upon confirmation of receipt by the party to receive such notice, of an e-mail sent to the e-mail address of such party. Any such notice shall be delivered or sent to a party at its address or e-mail address as set forth for such party on the first page hereto, or to such other address as may be designated by a party in a notice given to the other from time to time in accordance with the terms of this paragraph. A copy of any notice sent to Client shall be simultaneously sent to: Client
  3. SURVIVAL The provisions of sections 3.5, 3.6, 3.7, 4, 6, 7, 8 and 9 of this Agreement shall survive termination of this Agreement.
  4. AMENDMENTS Any amendments or modifications must be agreed to in writing by both parties.
  5. RELATIONSHIP OF PARTIES. The parties to this Agreement are independent contractors to one another and nothing in this Agreement shall be deemed to create a relationship of principal and agent between the parties. Additionally, nothing in this Agreement shall be construed to create an employer/employee, master/servant or partnership/joint venture relationship between the parties. Each party shall be exclusively responsible for selecting, supervising and compensating its own employees and/or representatives in the performance of their responsibilities under this Agreement. Neither party shall have the authority to bind the other or to transact business in the name of the other or to make representations or promises on behalf of the other except as it is expressly granted under this Agreement.
  6. AMENDMENTS Any amendments or modifications must be agreed to in writing by both parties.
  7. OTHER This is the entire Agreement between the parties with respect to its subject matter, and any previous or contemporaneous understanding is merged herein. Captions are included for convenience only and have no substantive significance. This Agreement shall not be assigned or transferred by Collector without Client’s prior written consent, nor shall any of the duties or responsibilities of Collector be assigned or transferred. Subject to the preceding sentence, all terms of this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties hereto, and their heirs, legal representatives, successors and permitted assigns. Time is of the essence of this Agreement.

[Signature Page Follows]

 

Signed by Adam Elder
Signed On: August 7, 2015

Fidelis Recovery Management, LLC http://www.fidelisrecovery.com
Signature Certificate
Document name: Fidelis Collection Contract
Unique Document ID: a206f2f55f6e2ff25909cadbf984a2d503301404
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2015-08-07 09:05:32 -05Document Fidelis Collection Contract
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2015-08-07 09:05:32 -05Document signed by Adam Elder - Sales@fidelisrecovery.com
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