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Home My WebLink About12-110 - Armada Corp - Collection Services12 -110 Council Approval NIA PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into this 3D 1b day of AAA between CITY OF TUKWILA (Hereinafter called Client) and ARMADA CORP. a Washington corporatio (Hereinafter called Collector). WITNESSETH WHEREAS, the Client has need of a collection service to be performed by an experienced and qualified collector for the purpose of collecting past due accounts owing Client. WHEREAS, it is the intent of this agreement that the accounts assigned to the Collector by Client shall be assigned at the sole discretion of the Client. 1. Contract Document. The contract documents consist of this agreement, together with exhibits attached, if any. 2. Work to be performed. The Collector shall do all work and furnish all equipment, labor and materials necessary to collect accounts assigned to Collector by Client. The Collector shall provide all forms and postage as required. 3. Time of Commencement. The services to be performed under this agreement shall commence on the day of o�0 /a 4. Termination. This agreement may be terminated by either party upon thirty (30) days advance written notice to the other party. Waiver of breach by any party shall not be deemed a waiver of any subsequent breach. 5. Assignment for Legal Action. In the event Collector determines legal action is necessary on any account, Client shall execute the assignment form provided by Collector and return it along with any requested documentation on the specified account. First monies recovered shall reimburse collector for any directly related expenditures. 6. Compensation for Collector Services. It is understood that all collection charges shall be added by the Collector to the amount assigned by the Client, pursuant to the authority of RCW 3.02, so that the Client shall receive one hundred percent (100 of all fines, forfeitures, costs or penalties. The add on collection fee shall be equal to forty percent (40 of the principal amount assigned by the Client and shall be retained by the Collector together with any lawfully assessed attorney's fees as remuneration for services. Payments received on accounts shall be applied proportionately to the principal and fees so that Client and Collector are compensated concurrently. Interest will be assessed to the accounts referred by the Client from the date of referral to the Collector at the rate of twelve percent (12 per annum. All interest collected on the assigned amount shall be shared equally between the Collector and the Client. The Client, at its discretion, may elect to refer criminal accounts to the Collector for collection. Criminal accounts shall be subject to the same collection fee as non criminal referrals, however Collector shall maintain separate accounting for such assignments. 7. Accounting and Payments by Collector. Monies collected shall be credited to interest, fees, and principal after court costs have been recovered. Collector shall supply sufficient reported information at the time of remittance to allow Client to make independent verification as to total amounts collected and any remaining balances. 8. Remittance Requirements: The parties agree to the following remittance schedule, subject to mutual modification. Collector shall: a. Submit a weekly remittance check and report with alpha accounting of amounts paid, balance due, Client case number and, if paid in full, whether final payment was made by check or cash. b. Provide a listing each day through electronic methods, showing accounts which have received a payment resulting in full satisfaction of the obligation. C. Collector shall reference the Client's case number as the identification number for all collection accounts on remittance reporting. I 0 (�L� 9. Compromises and Collection Costs. Collector has no authority to and will not engage in compromise settlement arrangements without prior authorization from Client. Client shall have no responsibility for uncollected costs advanced by Collector. 10. Reporting. Collector will provide an acknowledgement to Client immediately after accounts are assigned. The report may be provided by mail, facsimile transmission, or through Internet methods. Additionally, Collector will provide Client with various progress reports showing all accounts assigned to Collector as required by Client. Client may audit Collector's records pertaining to accounts assigned for collection after providing reasonable notice consisting of five days to Collector. 11. Indemnification. The Collector agrees and covenants to indemnify, defend and save harmless the Client, its officers, agents, and employees against and from any loss, damage, costs, charge, expense, liability, claims, demands or judgments, of whatsoever kind or nature, whether to persons or property arising wholly out of any act, action, neglect, omission, or default on the part of the Collector, its subcontractors and/or employees, except only such injury or damage as shall have been caused by or resulted from the sole negligence of the Client. In the case of any suit or cause of action, the Collector hereby agrees and covenants to assume the defense thereof and to pay any and all costs, charges, attorney fees and other expenses and any and all judgments that may be incurred or obtained against the Client. The Collector shall obtain and keep in force continually during the term of the agreement comprehensive general liability insurance coverage in the amount of at least One Million Dollars ($1,000,000). The Collector shall provide the Client with evidence of such insurance coverage. 12. Assignment of Interest. Neither Client nor Collector may assign this agreement nor any interest, right or responsibility arising from this agreement without the written consent of the other party. 13. For account flow information see attachments A and B. DATED this r day of TJYI� CITY OF TUKWILA i� BY: v cJ ARMADA CORP. BY: Mindy Reese Account Executive EXHIBIT A ter, is an emrnpk, Ae tuW process may ner to be mLtfied. Timing and frequency of phone contactlinoticec are at the di:zcWtion of --tzff. htid Denwid Follow -up Ren FoOm-up Demand EForts Sent Phone Cab Letter Phone Cal Notice Conbnue -V da�-- 30 days 15 days 15 d 15 drys 30 dap tc Dred �W by F clestaner No Response t, (Check for assets) gat -Proc4- Exhibit B The steps in your standard collection The City of Tukwila can feel secure knowing that with every account that is referred, Armada's efforts attain the highest level of collection results by utilizing the most prudent and effective strategies. If accounts are listed electronically using Armada's secure web portal they will be appear as new accounts in the system within twenty -four hours. Note: accounts sent late Friday may be loaded Monday morning The successful collection of past due accounts is contingent upon how each account is handled within the collection process. Armada's customizable "Account Flow Manager" is an integral and comprehensive component of the collection system. Through years of our own experience and with the consultation with each client, Armada is able to tailor account handling procedures that can bring exclusive benefits to each client. By utilizing a decision tree process the "Account Flow Manager" determines the exact handling procedure for each account as it enters the system. It then daily monitors and then manages the collection process to maximize the highest recovery efforts on each account from start to finish. Be assured that Armada's system parameters maintain full compliance with all federal, state and local laws. In addition, Armada's policy is that no legal action can be taken without prior written consent of the client. How often does a collector review each account? Armada assures that every account within the collectors Work In Process (WIP) list is handled frequently within the system parameters. The active accounts in the database are worked at least every fourteen days. Each office branch manager is responsible for reviewing daily each collector and their productivity to ensure that accounts are worked as the "Account Flow Manager" determines. When situations warrant a collector may change the process to facilitate the collection of the account. Armada has a standard 'minimum work frequency' of one consumer contact every two weeks or as the law allows until the account is resolved or it qualifies for the timed account reprocess recovery procedure. What is the collector to supervisor ratio? It ranges from two to seven. Each of the 6 Armada offices has a branch manager who is responsible for the collectors. By having a presence in communities throughout the region and state, we believe that we can reach your customers with a degree of effectiveness and consistency that others cannot match. This is a benefit for The City of Tukwila since Armada's database may contain information that will allow for more effective collections. How are the letters generated? Initially, the "Account Flow Manager" decision tree process generates the letters. There are many data elements that are used in determining which letter(s) to send and at what intervals. Authorized collectors do have the ability to request a legally approved letter from time to time and only when the situation requires it. Who has the authority to send letters? Trained authorized staff only. Are letters approved by a state authority? No. Armada's letters are approved by legal counsel and are FDCPA compliant. Are the letters unique for different situations? Yes, What is the process and schedule for monitoring accounts by supervisors? Each supervisor reviews the collector strategy reports daily. How do you handle disputes? When an account is disputed Armada by law electronically reports the disputes to the credit bureaus daily. Office management reviews each disputed account. The client is then notified of the dispute and the proper process of verification and comment is started. Based on the validity of the dispute the account is either cancelled or the recovery process proceeds. Full documentation for each account is stored. All activity including automated letters, manually entered collector notes, system generated "Account Flow Manager" activity is date and time stamped. What qualifies an account for legal action? When the consumer: (used only as a last resort) a. Ability to pay (has an asset —job, bank account etc.) b. Refuses to pay (or even make payment arrangements)