HomeMy WebLinkAbout1993-12-14; City Council; 12502; AGREEMENT WITH THE COLLETECH SYSTEMS INC. FOR COLLECTION SERVICESt
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#Y OF CARLSBAD - AGQDA BILL Z Y
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MTG, 12/14/93 AGREEMENT WITH COUECTECH SYSTEMS CITY ATT(
DEPT. FIN INC. FOR COLLECTION SERVICES CITY RIG&
RECOMMENDED ACTION:
Adopt Resolut!on NO. 484% authorhg the Mayor to exeeute an agreement wkh
Collectech Systems Inc. for accounts receivable pre-collection services.
ITEM EXPLANATION;
The Finance Department currently processes the City's accounts receivables which
include billings for paramedic services (ambulance), police services, business tax
audits and lease payments, to name just a few. Ambulance billings account for the
largest and most predktable segment of the receivables (approximately 150 billings
per month). These accounts also have the highest delinquency rates of all the
categories of receivables (3540%). With an average billing for ambulance service
approaching $300, rapid collection on these accounts will bring about faster cost
recovery. The high rate of uncollectibility on these accounts prompted an inquiry
into the use of a collection agency.
Collection agencies generally offer two basic services, a letter-writing service (pre-
collection) and a N1 service collection option (direct collections). With the pre-
collection service, a series of diplomatic letters of increasing intensity are sent to the
customer when the account has been deemed delinquent and the City has exhausted
its own collection efforts. With the direct collection service, the collection methods
are more intense and involve more personal contact between the collection agency
and the customer. Also, skip tracing and legal action may be pursued.
Staff is recommending that we contract for only the pre-collection service at this
time. As the bulk of our receivables are for paramedic services, staff feels that the
pre-collection service is more in line with the City's policies and past practices in
that it is a "softer" collection service than direct collections.
Under pre-collection, the debtor will be sent three letters (see examples in Exhibit
3). The first one states that the debt has been turned over to a collection agency;
the second states that if payment is not made, the debt will be reported to the major
credit reporting agencies; and the third one is from an attorney, once again asking
for payment. While legal action will not be taken as a direct result of pre-collection
efforts, the customer will be made aware that the City may opt to take legal action.
Using this collection procedure, no personal contact will be made with the debtor.
In addition, it is up to the City as to which accounts are assigned to the collection
agency. Thus, we would not be referring any accounts where we had been contacted and the debtor was trying to work out payment.
It is anticipated that pre-collection methods will result in a favorable recovery rate
on most of the City's delinquent accounts. The timely issuance of formal letters,
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PAGE TWO OF AGENDA BILL NO. Id, 50@
including an attorney's letter, from the collection agency should generate additional
phone responses and result in prompt payment on most accounts.
h order to evaluate which collection agency best meets the City's needs, staff met
with representatives from six different collection agencies. From these, three were
selected for further review (Collectech Systems Inc., Transworld Systems Inc. and
The Fallon Agencies). Below is a comparison of these agencies relating to pre-
collection services.
Collectech Transworld Fallon
Standard Cost (600 accounts) $7.95 $7.45 $7.50
Number of letters 3 5 3
Able to customize text? Y Y Y
Credit reporting? Y N N
Billing: prepaid or monthly? Both Both Both
Direct collections available? N (can refer) Y Y
Customer service Very Good Good Very Good
After reviewing all the factors, Collectech Systems Inc. was considered the most
suitable choice for the City's needs. The ability to affect the customer's credit was
a primary consideration in the selection of that agency. A customer's account may be reported to the three major credit agencies (TRW, Equifax and Transunion). The
threat of darnaged credit will not only cause an increase in full payment on accounts
but will also be an incentive for slow payers to respond sooner.
For all three of the agencies noted above, staff checked references focusing mainly
on their other governmental clients. Based on conversations with the clients already
using Collectech, the City can expect to find the agency cooperative and responsive.
The Finance department will review the results of pre-collection efforts on
delinquent accounts and determine if more costly direct collection methods are
warranted in the future. For now, however, the aim is to pursue delinquent
accounts using third-party intervention as soon as possible after the City's initial
billings and use a client-sensitive approach to achieve that result.
FISCAL IMPACT:
Staff was able to negotiate a very competitive price and will be charged only $6.00
per account for the first 1,000 accounts (2% of the average ambulance billing).
There are approximately 500 old accounts from fiscal year 1992-1993 which will
be assigned. In addition, it is expected that about 50 accounts per month will be
turned over for pre-collection on a regular basis. At that rate of usage, the 1,000
accounts would last approximately one year. Mer that time, if the service proves
satisfactory, the City would need to negotiate new terms.
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- PAGE THREE OF AGENDA BILL NO. )& 5° s
As the cost will be recovered through increased revenue to the City, staff is
recommending that funds in the amount of $6,000 be appropriated for the service
with an increase in the estimated revenues for paramedic services for a like amount.
This would result in no net change in the general fund balance.
EXHIBITS:
1. City Council Resolution No. 93-332 authorizing the Mayor to execute an
agreement with Collectech Systems Inc. for accounts receivable pre-collection
services.
2. Agreement between the City of Carlsbad and Collectech Systems Inc. for pre-
collection services.
3. Copies of sample pre-collection letters.
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RESOLUTION NO. 9 3 - 3 32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, CONTRACTING WITH COLLECTECH SYSTEMS, INC. TO PROVIDE CERTAIN
COLLECTION SERVICES AND APPROPRIATING FUNDS
WHEREAS, the City of Carlsbad has a large number of delinquent
accounts which do not respond to the City's collection efforts; and
WHEREAS, the City has determined that pre-collection services provided
by a collection agency would improve the collection rate on the delinquent accounts;
and
WHEREAS, the City has received proposals from three collection
agencies and has selected Collectech Systems Inc. as the agency that would best
serve the City's needs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Carlsbad, California, as follows:
1.
2.
That the above recitations are true and correct.
That the Mayor of the City of Carlsbad is authorized to sign an
agreement between the City of Carlsbad and Collectech Systems Inca for pre-
collection services.
3. That the fees and compensation for said services shall not exceed
$6,000 and shall be as described in the Agreement between the City of Carlsbad and
Collectech Systems Inc.
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4. That $6,000 is hereby appropriated from the general fund to
cover the cost of the service and estimated revenues in the general fund are hereby
increased by a like amount.
5. That at the conclusion of the first year, the Finance Department
shall report on the results obtained and make a recommendation for future use, if
appropriate and desirable, to the City Council.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council on the 14th day of DECEMBER , 1993, by the following vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finn
NOES: None
ABSENT: None
ATTEST:
ALETHA L. MUTENKRANZ, City Clerk (SEAL)
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AGREEMENT
THIS AGREEMENT, made and entered into as of the &hay of4 lbfih 19~
by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to
as "City", and Collectech Systems, Inc., hereinafter referred to as "Consultant".
RECITALS
City requires the services of a collection agency to provide certain collection services
for the City's delinquent accounts receivable; and Consultant possesses the necessary skills
and qualifications to provide the services required by the City;
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Consultant agree as follows:
1. CONSULTANT'S OBLIGATIONS
As specified in Attachment A to this agreement.
2. CITY OBLIGATIONS
As specified in Attachment B to this agreement.
3. PROGRESS AND COMPLETION
The work under this contract will begin within ten (10) days after receipt of
notification to proceed by the City and be completed within 24 months of that date.
Extensions of time may be granted if requested by the Consultant and agreed to in writing
by the Finance Director. The Finance Director will give allowance for documented and
substantiated unforeseeable and unavoidable delays not caused by a lack of foresight on
the part of the Consultant, or delays caused by City inaction or other agencies' lack of
timely action.
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4. FEES TO BE PAID TO CONSULTANT
The total shall not exceed the fee payable according to Paragraph 6, "Payment of
Fees," and shall be $6,000. No other compensation for services will be allowed except
those items covered by supplemental agreements per Paragraph 7, "Changes in Work."
5. DURATION OF CON'TRACI'
This agreement shall extend for a period of 24 months from date thereof.
6. PAYMENTOFFEES
A payment of $6.00 per letter-set, up to a maximum of 1,000 letter-sets, is due
monthly based on usage.
7. CHANGESINWORK
If, in the come of the contract, changes seem merited by the Consultant or the City,
and informal consultations with the other party indicate that a change in the conditions
of the contract is warranted, the Consultant or the City may request a change in contract.
Such changes shall be processed by the City in the following manner: A letter outlining
the required changes shall be forwarded to the City by Consultant to inform them of the
proposed changes along with a statement of estimated changes in charges or time schedule.
A supplemental agreement shall be prepared by the City and approved by the City
according to the procedures described in Carlsbad Municipal Code Section 3.28.172. Such
supplemental agreement shall not render ineffective or invalidate unaffected portions of the
agreement.
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8. COVENANTS AGAINST CONTINGENT FEES
The Consultant warrants that their firm has not employed or retained any company
or person, other than a bona fide employee working for the Consultant, to solicit or secure
this agreement, and that Consultant has not paid or agreed to pay any company or person,
other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or
any other consideration contingent upon, or resulting from, the award or making of this
agreement. For breach or violation of this warranty, the City shall have the right to annul
this agreement without liability, or, in its discretion, to deduct from the agreement price
or consideration, or otherwise recover, the full amount of such fee, commission,
percentage, brokerage fees, gift, or contingent fee.
9. NONDISCRIMINATION CLAUSE
The Consultant shall comply with the state and federal laws regarding
nondiscrimination.
10. TERMINATION OF CONTRACT
In the event of the Consultant's failure to prosecute, deliver, or perform the work
as provided for in this contract, the City may terminate this contract for nonperformance
by notifying the Consultant by certified mail of the termination of the Consultant. The
Consultant, thereupon, has five (5) working days to deliver said documents owned by the
City and all work in progress to the Finance Director. The Finance Director shall make a
determination of fact based upon the documents delivered to City of the percentage of
work which the Consultant has performed which is usable and of worth to the City in
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having the contract completed. Based upon that finding as reported to the City Manager,
the Manager shall determine the final payment of the contract.
11. DISPUTES
If a dispute should arise regarding the performance of work under this agreement,
the following procedure shall be used to resolve any question of fact or interpretation not
otherwise settled by agreement between parties. Such questions, if they become identified
as a part of a dispute among persons operating under the provisions of this contract, shall
be reduced to writing by the principal of the Consultant or the City Finance Director. A
copy of such documented dispute shall be forwarded to both parties involved along with
recommended methods of resolution which would be of benefit to both parties. The City
Finance Director or principal receiving the letter shall reply to the letter along with a
recommended method of resolution within ten (10) days. If the resolution thus obtained
is unsatisfactory to the aggrieved party, a letter outlining the dispute shall be forwarded
to the City Council for their resolution through the Office of the City Manager. The City
Council may then opt to consider the directed solution to the problem. In such cases, the
action of the City Council shall be binding upon the parties involved, although nothing in
this procedure shall prohibit the parties seeking remedies available to them at law.
12. SUSPENSION OR TERMINATION OF SERVICES
This agreement may be terminated by either party upon tendering thuzy (30) days
written notice to the other party. In the event of such suspension or termination, upon
request of the City, the Consultant shall assemble the work product and put same in order
for proper fling and closing and deliver said product to City. In the event of termination,
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the Consultant shall be paid for work performed to the termination date; however, the total
shall not exceed the lump sum fee payable under paragraph 4. The City shall make the
final determination as to the portions of tasks completed and the compensation to be made.
13. STATUS OF THE CONSULTANT
The Consultant shall perform the services provided for herein in Consultant's own
way as an independent contractor and in pursuit of Consultant's independent calling, and
not as an employee of the City. Consultant shdl be under control of the City only as to
the result to be accomplished, but shall consult with the City as provided for in the request
for proposal.
The Consultant is an independent contractor of the City. The payment made to the
Consultant pursuant to the contract shall be the full and complete compensation to which
the Consultant is entitled. The City shall not make any federal or state tax withholdings
on behalf of the Consultant. The City shall not be required to pay any workers'
compensation insurance on behalf of the Consultant. The Consultant agrees to indemnify
the City for any tax, retirement contribution, social security, overtime payment, or workers'
compensation payment which the City may be required to make on behalf of the
Consultant or any employee of the Consultant for work done under this agreement.
The Consultant shall be aware of the requirements of the Immigration Reform and
Control Act of 1986 and shall comply with those requirements, including, but not limited
to, verifying the eligibility for employment of all agents, employees, subcontractors and
consultants that are included in this agreement.
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14. CONFORMITY TO LEGAL REOUlREMEWTS
The Consultant shall at all times comply with the guidelines set forth by the Federal
Fair Debt Collections Practices Act.
15. OWNERSHIP OF DOCUMENTS
All reports as herein required are the property of the City, whether the work for
which they are made be executed or not. In the event this contract is terminated, all
reports shall be delivered forthwith to the City. Consultant shall have the right to make
one (1) copy of the reports for hisher records.
16. HOLD HARMLESS AGREE~NT
The City, its officers, and employees shall not be liable for any claims, liabilities,
penalties, fines, or any damage to goods, properties, or effects of any person whatever, nor
for personal injuries or death caused by, or resulting fkom, any intentional or negligent
acts, errors or omissions of Consultant or Consultant's agents, employees, or
representatives. Consultant agrees to defend, indemnify, and save free and harmless the
City and its officers and employees against any of the foregoing claims, liabilities, penalties
or fines, including liabilities or claims by reason of alleged defects in any plans and
specifications, and any cost, expense or attorney's fees which are incurred by the City on
account of any of the foregoing.
17. ASSIGNMENT OF CONTRAfl
The Consultant shall not assign this contract or any part thereof or any monies due
thereunder without the prior written consent of the City.
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18. SUBCONTRACITNG
The Consultant shall not subcontract any of the work to be performed under this
agreement.
19. PROHlBITED I"EREST
No official of the City who is authorized in such capacity on behalf of the City to
negotiate, make, accept, or approve, or take part in negotiating, making, accepting, or
approving of this agreement, shall become directly or indirectly interested personally in this
contract or in any part thereof. No officer or employee of the City who is authorized in
such capacity and on behalf of the City to exercise any executive, supervisory, or similar
functions in connection with the performance of this contract shall become directly or
indirectly interested personally in this contract or any part thereof.
20. VERBAL AGREE~NT OR CONvERsATlON
No verbal agreement or conversation with any officer, agent, or employee of the
City, either before, during or after the execution of this contract, shall affect or modify any
of the terms or obligations herein contained nor entitle the Consultant to any additional
payment whatsoever under the terms of this contract.
21. SUCCESSORS OR ASSIGNS
Subject to the provisions of Paragraph 16, "Hold Harmless Agreement," all terms,
conditions, and provisions hereof shall inure to and shall bind each of the parties hereto,
and each of their respective heirs, executors, administrators, successors, and assigns.
22. EFFECTIVEDATE
This agreement shall be effective on and from the day and year first written above.
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23. CONFLICT OF INTEREST
The Consultant shall file a conflict of interest statement with the city clerk in
accordance with the requirements of the City's conflict of interest code. The disclosure
category shall be categories 3. Business Entity Income, and 4. Business Position.
24. INSURANCE
The Consultant shall obtain and maintain policies of general liability insurance,
automobile liability insurance, and a combined policy of workeis compensation and
employers liability insurance from an insurance company authorized to do business in the
State of California which meets the requirements of City Council Resolution No. 91-403
in an insurable amount of not less than one million dollars ($1,000,000) each, unless a
lower amount is approved by the City Attorney or the City Manager. This insurance shall
be in force during the life of this agreement and shall not be canceled without thirty (30)
days prior written notice to the City sent by certified mail.
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The City shall be named as an additional insured on these policies. The Consultant shall
fbrnish certificates of insurance o the City before commencement of work. Executed by
Consultant this [/3-JR day of LA9ql.
CONSULTANT:
OFFICER:
Collectech Systems, Inc.
By:BIj /y-y --J Z
M anK o hPresident F
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L?-/Y- f3 I, y
By:
Brad Jadwi , Executive Vice President I
ration of the State of California
ATTEST:
Aletha L. Rautenkranz, City Clerk
APPROVED AS TO FORM:
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Ronal CityL ~. ~ "4
By:
/y36/73 Deputy City Attorney
ATTACHMENT A 0
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A NEW TECHNOLOGY IN ACCOUNTS RECEIVABLES MANAGEMENT
COLLECTECH SYSTEMS, Inc.
Key Account Proposal
For
Lisa Hildabrand
CITY OF CARLSBAD
By: David S. Varney
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NEW YORK CHICAGO LOS ANGELES ATLANTA PHOENIX DALLAS SEATTLE SAN FRANCISCO ANAHEIM RALEIGH WASH
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A NEW TECHNOLOGY IN ACCOUNTS RECEIVABLES MANAGEMENT
INTRODUCTION
COLLECTECH SYSTEMS, Inc. is designed to be the most advanced, flexible, and
cost effective method of pursuing your delinquent accounts receivable.
There are many "collection agencies" available offering various services. However,
the effectiveness of every collection agency is not so much what they say or do;
rather it's the impact they have and what they potentially represent. In order to
simplifl this concept, we have broken it down into three categories:
THIRD PARTY INTERVENTION
- The impact of dealing with a dis-interested party unconcerned about my
- Knowing that a collection agency is concentrating solely on recovering
situation.
th~s debt.
THE FEAR OF DAMAGED CREDIT. - The fear 7 years of damaged credit. - The fear of losing ones hancial freedom. - The fear of having to rely on cash purchases only.
THE FEAR OF ATTORNEY INVOLVEMENT - The fear of not knowing how far legal action will be pursued. - The agonizing anticipation of costly legal fees.
These key leverages used in a controlled manner have proven to effect collections
after normal internal efforts have been exhausted.
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NEW YORK CHICAGO LOS ANGELES ATLANTA 0' PHOENIX DALLAS SEATTLE SAN FRANCISCO ANAHEIM RALEIGH WASH
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ES MANAGEMENT
RESULTS
The COLLECTECH SYSTEM has an unparalleled track record in the collection
industry. After only four years the organization has set new standards in terms of
overall collection recoveries, minimal cost per dollar invested, and outstanding
customer service.
The performance of our system has enabled thousands of clients to benefit from the
combination of powefi collection technology and an attitude towards flexibility
that has made this program work in a variety of situations.
Competition has been neutralized by test after test of COLLECTECH's program
against all other major agencies.
Corporations such as XEROX, WASTE MANAGEMENT, PAGENET, BFI and
PACTEL all employ sophsticated collection resources. Each one of them, and
many more, rely on the COLLECTECH SYSTEM to play a significant role in the
challenge of improving all aspects of their collection goals.
COLLECTECH's mission is in sync with your goals, which is to collect as much
internally, thereby reducing your bad debt and the need for costly outside
percentage agencies.
COLLECTECH is a licensed collection agency and member of the American
Collectors Association operating within the Federal Fair Debt Collection Practices
Act and FTC. Since our inception there have been no formal complaints issued by
these firms. Annual placements average $80 million. Collection recoveries are an
average of 40%. Cost per dollar collected averages .04 cents.
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NEW YORK CHICAGO LOS ANGELES ATLANTA PHOENIX DALLAS SEATTLE SAN FRANCISCO ANAHEIM RALEIGH Lbk:-
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A NEW TECHNOLOGY IN ACCOUNTS RECEIVABLES MANAGEMENT
COLLECTECH SYSTEMS, Inca
Features
* Third Party Intervention
COLLECTECH provides third party intervention that brings to bear the full impact
of a collection agency without the negative connotation such as hgh commission,
negative impact on your customer and your established public image.
* CashFlow
Each time we contact your customers, we include specific instructions to remit a
cashiers check or money order directly to you, thereby directly increasing your cash
flow. Conventional agencies can hold your funds for up to 60 days earning interest,
before remitting to you.
* Credit Reporting (Optional at no extra charge)
As part of our progressive collection approach, we included the threat of being
reported to the major credit reporting agencies; TRW, Transunion, Equifax, and
the eventual reporting of those accounts that do not respond positively.
* Legal Correspondence (Optional at no extra charge)
A professional Attorney demand can be used as the final contact. .
* Audit Demand
A letter sent by COLLECTECH on client's letterhead to supersede the
COLLECTECH SYSTEM and allow the customer a final opportunity to respond
before being contacted by your collection agency. This audit letter can be
automated in the collection process.
* "Thank You" Notes
Professional "Thank You" notes sent upon request to those accounts that do respond
positively.
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NEW YORK CHICAGO LOS ANGELES ATLANTA PHOENIX DALLAS SEATTLE SAN FRANCISCO ANAHEIM RALEIGH WASHI
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A NEW TECHNOLOGY IN ACCOUNTS RECEIVABLES MANAGEMENT
Features
(continued)
* Public Image
Unlike conventional agencies, The COLLECTECH SYSTEM was designed to
salvage those customer relationships that you deem worth saving. This unique
quality of the program is helpful in maintaining your established public image.
* Time Driven Collections
The first collection contact in our program is made within 48 hours of receipt of
your mformation. If necessary, subsequent contact will automatically follow in 13
day intervals. Total collection time frame is 26 days (or can be adjusted to meet
your needs).
* Placements
Account information submitted via: - Re-printed transmittal tickets. - Statement or Billing copy - Magnetic Tape - Micro Diskette
* Monthly Reports - Acknowledgment reports provided on a monthly basis listing all accounts
- A Completion Report sent at the end of each month listing current month
placed within a given month.
and inception to date statistical information.
* Reassignment
As part of our full service, we can quickly and conveniently reassign your accounts
that remain unpaid at the end of our series.
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NEW YORK @ CHICAGO * 10s ANGELES @ ATLANTA @ PHOENIX @ DALLAS @ SEATTLE @ SAN FRANCISCO @ ANAHEIM @ RALEIGH @ WASH11
- __ - - - - __ - - ___ ___ - - - _ - - - -- ---- -
- Calabasas, CA 91302
818-222-4193
(ON DEMANDS) -
DEMAND
DEMAND
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(IF DIFFERENT THAN ABOVE)
CONTACT ADDRESS
(IF DIFFERENT THAN ABOVE)
THIS AGREEMENT is between COLLECTECH SYSTEMS INC., a California Corporation, home office at 23945 Calabasas Road, Calabasas CA 91
and the business or individual above named as client. In consideration of the mutual covenants contained herein, the parties agree as folk
1- COLLECTECH SYSTEMS will provide client with the means to assign the number of accounts specified in the above order form
in the space labeled “Quantity of Letter Sets.” Each account will be assigned at the flat rate shown in the order form space
labeled “Price Per Letter Set.”
2- COLLECTECH SYSTEMS will attempt to contact and collect assigned account balances by sending demand letters to the name and address supplied by client. The maximum number of demand letters sent to any one account is determined by client’s selection
of a particular letter set; Le., a related series of collection demand letters.
3- Client represents and warrants that all accounts placed with COLLECTECH SYSTEMS are presently due, owing, and unpaid. Client further agrees to notify COLLECTECH SYSTEMS within 10 days of receipt of payments on accounts assigned to COLLECTECH
SYSTEMS and whether such payments constitute payment in full.
4- Client agrees to pay for each order placed with COLLECTECH SYSTEMS the “Total This Order” amount shown. This amount consists
of a letter cost determined by multiplying the Quantity of Letter Sets times the Price Per Letter Set plus any custom letter series
charges, or specified “Other Charges,” that may have been incurred.
5- Collectech reserves the right to offset any dollars owed with collections recovered thru Collectech or any of the contingency fee
agencies it may utilize on behalf of the client.
6- In the event it is necessary to bring any action, claim, or proceeding to enforce or interpret the terms of this agreement, the
prevailing party shall be entitled to reasonable but not less than actual attorney’s fees, costs, and necessary disbursements in addition to any other relief to which that party may be entitled. Any amounts due COLLECTECH SYSTEMS under this agreement
shall bear interest from due date at the rate of 10% per annum.
7- All block orders must be used within 24 months.
8- Reorder payment terms: All or any reorders will be subject to the same enforcement procedures as stated in this agreement.
9- COLLECTECH SYSTEMS reserves the right to chanoe the text or format of our demands in order to comply with the guidelines set forth by the Federal Fair Debt Collections Practices Act.
Date
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COLLECTECH . Q CRLECTECH SYSTEMS WC.-AII Rits R&EPJM (w. 6/92)
- - - - - - - s BEEN SENT TO YOU BY A COLLEC AGENCY
EXHIBIT 3
coii~c rcHTiWrEm Iuc. w
C1'ent Name ABC COMPANY, INC. -;~;3..$; <- .
(8 18) 222-5863
Calabasas. CA 91302
23945 Calabaras Rord w $1,000.00
Social Securlty No
AgencV Account NO 12345 005000 0025
Client Ref No
5 5 5 - 4 4 - 3 3 3 3
ABC-123
Notice Dated 10/10/91
JOHN SMITH
1234 DEBTOR STREET ANYWHERE, ANY STATE A good credit reputation takes years to build Don't leopardrze L yows over this past due account
COLLECTECH SYSTEMS, INC. is a licensed collection agency. This is an attempt to collect a debt. Any infomution obtained will be used lor that purpose.
Our client has asked us to contact you about the past due amount shown above.
Please be advised that we have been authorized to pursue collection
and are committed to make whatever efforts are necessary to effect collection.
SEND YOUR CHECK OR MONEY ORDER, FULL AMOUNT DUE.
We have pre-addressed the lower, tear-off portion of this letter
convenience.
When your obligation has been paid in full, we will clear this record from our files.
THANK YOU.
PAYABLE TO OUR CLIENT FOR THE
to our client and have included a return envelope for your mailing
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Dabtorlame: JOHN SMITH ?
1234 DEBTOR STREET 2 - - - $1,000.00
Social Security No
Client Ref No ABC-123
5 5 5 - 4 4 - 3 3 3 3
Aiw Account No
Nonce Dated 10/10/91
12345 005000 0025 n 2
2
- ABC COMPANY, INC.
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Client Phone 213-111-2222 3
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y1 111 MAIN STREET i ANYWHERE, ANY STATE
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I- 3 IMPORTANT Return this portion of the nonce together with your ayment in the envelope provided for our convenlenc q his will ensure prompt, accurate hanhng upon recell
COLLECTION DEPARTMENT
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Unless you notify this office within 30 da s after receiving this notice that you dispute the valid of this debt or an portion thereof, this o&ce will assume this debt is valid. If you notify this off! in writing within JO days from receiving this notice, this office will: obtain verification of the de
name and address of the original creditor, if different from the current creditor.
YOU MUST VALIDATE YOUR DISPUTE BY PROVlDlNG THE FOLLOWlNG INFORMATION:
or obtain a CODY of a judgment and mail you a copy of such jud ment or verificatjonl If you reguc this office in writing within 30 days after receiving this notice, 8 is office will provide you with i
. . .The amount disputed
. . .Client ref. no. *
. . .A ency account number . . . B our client's name
. . .A brief explanation of why you believe the disputed amount to be incorrect.
*Indicated portions of the required information are shown on the face of this letter.
- M 3tN I I U TUU CIT A LuLLtt.. n fiuu.b 1 H I-.-..- --
.l oi
~p;;.:.. :. . aim .. .:,. . * . . . ABc COMPANY, INC.
COUECTECHS T TEMS IIIIC.
8
0 $1,000.00
Nabca Datsd: 10/10/91
(8 18) 222-5863
23!34S Wabuu
Calabarar, CA 9 CJJplA Wnty No.: 5 55 - 44 - 33 3 3
~geneyh~t~~ 12345 005000 0025
ABC-123 Client Ref No
JOHN SMITH
1234 DEBTOR STREET
ANYWHERE, ANY STATE
so llerd to build, 90 easy fo F
CoUEcfrm SYSTEW, INC. k I lkmal colkctkn 19lclcy. Thk ir an mrrpt to coikct I kbt Anv informrtbn obtrind will ba ud for that purporr.
YOU have been given notice of this claim as required by law. Although duly demanded, this account has not been paid-
IF THIS MATTER IS NOT BESOLVED WITH OUR CLIENT, YOUR ACCOUNT WILL
BE REPORTED TO THE THREE MAJOR CREDIT REPORTING AGENCIES; TRW, EQUIFAX AND TRANSUNION. THIS ACTION WILL AFFECT YOUR CREDIT.
SEND YOUR CHECK OR MONEY ORDER, PAYABLE TO OUR CLIENT, FOR THE 5 FULL AMOUNT DUE.
We have pre-addressed the lower, tear-off portion of this letter t our client and have included a return envelope for your convenienc
When your obligation has been paid in full, we will clear this record from our files.
Thank you.
JOHN SMITH DJbrllrm - N
rg !?
6 $1,000 * 00 r 555-44-3333 - N
sarrlsaunyNo'' 12345 005000 002
Agmq AecMt No.: ABC-123
10/10/91
8 WM.Na:
213 -111-2222 P Notic8 w: rn w
ahtphorr a
B a
2
2 ABC COMPANY, INC.
I 111 MAIN STREET Y
0 z COLLECTION DEPARTMENT
llImn~~dtbraplier.Idrrvvimyp.
~ i*-st - ANYWHERE, ANY STATE I- !
N m 9
2 0 0 7=- -y 'g*T%-atm f3k
I <
Unless you notify this office within 30 d after receiving this notice that yw dispute the wlidi of thb debt wan portion tbmf, this o x 'e will assume this debt is valid. If you notify th&aiYk in writing within JO day^ fr~m receiving this notice, this office will: w verificatior, of t~ dei (xwcatian. IfyOuaqlJe this office in writing w*thin 30 &ys after receiving this will provide you @h tl name and addm of the original creditw, if different from the curenf uedtcu.
YOU MUST VALlOAlE YOUR DISWTE BY PROV/DlNG THE FOLLOWING INFQM770N:
(x obtain a copy of a ju@mt and marl you a copy of
. . .The amount disputed
. . .C/knt ref. no.
, , .Apcy account number . . . ow client's name *
. . .A brief exp&nation of why yw believe the disputed amant to be incorrect
*
*Indicated poltions of the required inbmatbn are shown an the face of this letter.
4 0 e .
I
LAW OFFICES v
1314 G Street Jack B Lamb (1924-1992) LAMB & MICHAEL Modesto California 95:
William H Michael A Professional Corporatlon (209) 578-41 11
LindaS Leong FAX (209) 578-4969
JOHN SMITH DATE : 10/10/91
1234 DEBTOR STREET ANYWHERE, ANY STATE NOW DUE: $1,000.00
REF: 12345-005000-0025
RE: ABC COMPANY, INC. REF #: ABC-123
This office has been retained by Collectech Systems, Inc. They k. asked us to contact you about this debt. Note that any informati obtained from you will be used for the purpose of collecting this debt.
is not received within 30 days frcm the date of this letter, we shall assume the debt is valid. verification of the debt will be provided.
We have not reviewed the merits of this claim, however, it has bf our experience that customers who delay payment until court actic compels them to meet their obligation, seldom anticipate the additional costs they may incur. Besides court costs, fees and charges, there are additional losses and distractions measured ii time, aggravation and expense that can easily be more costly tha the original debt.
If litigation were to be undertaken, it would be referred to a 1
attorney, in accordance with appropriate state statutes. Please demonstrate your willingness to resolve this matter voluntarily
remitting the full amount due.
Very truly yours,
LAMB & MICHAEL
If a written dispute of the debt amount or any portion of
Upon receipt of a dispute,
h&/J*
William H. Michael
m/gP
PAYMENT TO: ABC COMPANY, INC.
COLLECTION DEPARTMENT
111 MAIN STREET
ANYWHERE, ANY STATE
CONTACT: 213-111-2222