027-19 - Dynamic Collectors, Inc. - ContractDYNAMIC COLLECTORS, INC.
790 S MARKET BLVD, CHEHALIS, WA 98532
(360) 748.0420 o (800) 464.3457 o FAx (360) 748.0262
ILI N_C O R PORATE D,'&
THIS CONTRACT made and entered into this I day of ELI Ll�_
Port Orchard Municipal Court, Port Orchard, Washington (hereafter called "COURT") , A by
and Dynamic
Collectors, Inc. (hereafter called "AGENCY"). It is understood that the AGENCY will be principally
liable for compliance with this contract and insuring compliance of its affiliates, if any.
WHEREAS, the COURT holds unpaid judgments, which it desires to have collected; and
WHEREAS, statutory authority exists under RCW 3.02.045 for the assignment of said unpaid judgments
to a licensed collection agency for collection; and
WHEREAS, the AGENCY is duly licensed and bonded to collect said judgments assigned for collection
by the COURT, THE PARTIES AGREE AND CONTRACT AS FOLLOWS:
1. Term and Termination
Either party may terminate this contract within thirty (30) days written notice to the other party or
otherwise as the parties may mutually agree. If at any time a party materially defaults on its
obligations under this contract the injured party may, at its option, send a notice thereof to the party in
default. If such default is not remedied within 15 days of delivery of such notice, the party sending
the notice may thereafter terminate this contract. If the AGENCY should become the subject of
bankruptcy receivership or insolvency proceedings, the COURT may elect to terminate this contract.
Such election shall be effective immediately upon mailing written notice of termination to the
AGENCY. On termination of this contract, the AGENCY shall, on request, furnish the COURT with
any information obtained with reference to the assigned accounts and/or consumer obligated thereon.
This contract shall automatically renew annually unless a desire to renegotiate a new contract is given
by either party.
2. Assignment of Judgments
The AGENCY agrees to accept for collection and the COURT agrees to assign various judgments
that the COURT determines appropriate for collection, upon the terms and conditions set forth herein.
3. Collection Efforts.
The AGENCY shall exercise its best prudent and lawful efforts to secure collections of all accounts
referred.
4. Debts Just and Owing_
The COURT certifies that every account referred will contain accurate information and will be just
and owing, and will not be subject to any valid defense, set-off or counterclaim then known to the
COURT, including that such account or the obligor of such account will not be subject to any
bankruptcy proceeding, stay or discharge as of the time of referral. The COURT shall promptly
inform the AGENCY, in writing, of any notice they receive that concerns any bankruptcy filing by
any consumer, or of any other circumstance which is made known to the COURT, which constitutes a
defense to a collection action.
5. Compliance with Laws.
Collection activities by the AGENCY shall be in strict compliance with all State and Federal laws
existing at the time of collection activity. These laws include, but are not limited to, Chapter 19.16
RCW (the Collection Agency Act), Chapter 19.86 RCW (the Consumer Protection Act), RCW
3.02.045 (governing use of collection agencies by courts of limited jurisdiction), Public Law 95-109
(the Fair Debt Collection Practices Act) and all applicable laws and regulations of the United States
Departments of Postal Services and the Federal Trade Commission and the Federal Service Member's
Civil Relief Act and any applicable state iteration thereof.
6. Le2al Action & Work to be Performed
The AGENCY shall do all work and furnish all equipment, labor and materials necessary to collect
unpaid judgments assigned to the AGENCY by the COURT. The judgments assigned will be chosen
at the sole discretion of the COURT.
6.1. The AGENCY will provide a thirty -day notice for the COURT prior to assigning the judgments
for collections. The AGENCY will bear all expenses for the producing of this notice. This final
notice will be designed to meet the approval of the COURT and will reflect that payment is to be
made to the COURT.
6.2. Additional litigation by the AGENCY will be taken only after reasonable collection efforts have
been made. Unless otherwise agreed, legal costs and fees will be paid by the AGENCY and not
the COURT, and will be recoverable from the consumer where allowed by applicable law, out of
first monies recovered.
6.3. In the event that a defendant resides in another state, the judgment assigned from the COURT
may be forwarded to another collection agency with which the AGENCY has a Business
Associates Agreement or the judgment assigned from the COURT may be cancelled as an
alternative.
7. Insurance and Surety Requirements.
For the duration of this contract, the AGENCY shall maintain in full force and effect and shall
provide evidence of all insurance required by Port Orchard Municipal Court, including, but not
limited to, evidence of insurance against personal injury liability, comprehensive general liability,
workers compensation and automobile liability insurance. Available upon request.
Additionally, the AGENCY will provide a fidelity bond in the sum of $1,000,000.00. Available upon
request.
S. Claims against Client.
Neither the AGENCY, nor the AGENCY'S attorneys shall be responsible for providing the COURT
with legal representation to defend the COURT against any claims, counterclaims or third -party
claims asserted against the COURT, whether asserted in response to a collection lawsuit initiated by
the AGENCY or otherwise.
9. Cancellation of Accounts.
Any judgments referred to the AGENCY may be withdrawn by the COURT at any time, unless legal
action has been commenced by the AGENCY. Notification of withdrawal may be verbal, but shall be
verified in writing prior to the next report date. In the event a judgment is withdrawn by the COURT,
no fee will be due to the AGENCY for col lection efforts on said judgment.
10. Uncollectible Accounts.
In the event an account is deemed uncollectible by the AGENCY, it may be returned to the COURT
together with an explanation of why it is uncollectible.
11. Hold Harmless Clause.
The AGENCY agrees to indemnify and hold the Clerk of the Court, Port Orchard Municipal Court
and all elected officials, employees and agents of the Port Orchard Municipal Court harmless from
and against any and all claims, demands, liabilities, judgments, losses and expenses, including but not
limited to court costs and reasonable attorney fees occasioned by, arising out of related to, or in
connection with any negligent or willful action or omission of the AGENCY or its employees and
agents in the performance of the herein described. The COURT will indemnify and hold harmless the
AGENCY, subsidiary or affiliated companies and divisions, and their officers, agents, owners,
attorneys and employees from any claims arising out of or as a result of the negligent acts or
omissions of the COURT, its employees or agents; and specifically agrees to indemnify and hold
harmless from and against all claims resulting from errors in account information furnished to the
AGENCY by the COURT.
12. Agency Compensation.
COURT will receive 100% of the principal amount placed with the AGENCY when judgments are
paid in full.
The AGENCY will leave a $5.00 balance on the judgment principal portion owed until all collection
fees, interest charges and legal costs or fees have been paid in full.
Collection fees shall be added by the COURT onto judgments assigned to the AGENCY at the time
of assignment. The AGENCY shall retain payment for services performed as set out hereafter:
The fee will be based on the assigned judgment amount per RCW 19.16.500. If the amount is
$100.00 or less, the COURT will assign a fee equal to the full amount. Judgments over $100.00 will
be assigned a fee of 50% of the assigned amount. Judgments over $100,000.00 will be assigned a fee
of 35% of the assigned amount.
Partial payments will be split between the COURT and the AGENCY as follows: Payments shall be
applied first to all costs and fees incurred by the AGENCY, including, but not limited to: filing fees,
ex parte fees, attorney fees and mailing and postage fees. Remaining payments shall be applied at a
rate of 60% to the COURT and 40% to the AGENCY.
13. Interest Charues.
Upon assignment to collection, interest shall accrue on all account amounts, including, but not limited
to, court costs and/or collection fees, at the rate of 12% percent per annum. Accrued interest shall be
calculated by the AGENCY, collected by the AGENCY and remitted by the AGENCY as follows:
100% of accrued interest to the COURT prior to the AGENCY commencing legal action and 100% of
interest accrued after the AGENCY has commenced legal action shall be retained by the AGENCY.
Any criminal accounts assigned to collection, shall not accrue interest. Criminal restitution amounts
must be assigned as a separate account in order to accrue interest. The AGENCY reserves the right to
stop charging interest on payroll deductions and post-dated payment plans.
The COURT must receive full payment in order to close a case. The COURT authorizes the
AGENCY to either waive or reduce interest as a negotiation tool.
14. Change in Law.
Should there be changes in laws or through the COURTS policies which prescribe/allow a different
method for receiving collection fees, the AGENCY shall modify its methods accordingly, upon
instruction from the COURT.
15. Payments to COURT from Other Source.
A payment made on behalf of a consumer directly to the COURT on an assigned account will be
promptly reported to the AGENCY by the COURT.
16. Bankruptcy.
When an account becomes subject to bankruptcy proceedings, the AGENCY will cancel the account
back to the COURT.
17. Reports and Remittance Schedule.
The AGENCY and the COURT agree to the following reports and remittance schedule, subject to
mutual modifications:
17.1. The AGENCY shall furnish the COURT with a computerized acknowledgment of the assigned
judgments within a reasonable period of time following receipt of the same. The
acknowledgement shall include an ALPHA listing by name of judgment consumer, court
assigned case number, amount assigned, total number of judgments and total dollar amounts
assigned for collection.
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17.2. The AGENCY will remit payment to the COURT mmTdtiy.
17.3. The AGENCY will furnish the COURT with a report indicating all judgments currently
assigned to the AGENCY upon request. The COURT will be provided online access to
assigned judgments if desired.
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18. Compromises.
The AGENCY will not engage in compromise settlement arrangements without the permission from
the COURT on any judgment turned over (with the exception of interest adjustments). The COURT
shall have no responsibility for uncollected costs advanced by the AGENCY.
19. Trust Fund Account.
The AGENCY shall deposit all sums received in payment of assigned judgments in a trust account
maintained at Security State Bank. All such funds shall be held in trust as the sole and exclusive
property of the COURT and steal I not be used or available for any use by the AGENCY for any
purpose whatsoever; or in any way co -mingled with the assets of the AGENCY. Such funds will
continue to be the funds of the COURT until remitted or otherwise transferred. The COURT
authorizes the AGENCY to endorse cashier's checks and money orders made payable to the COURT
for the purpose of deposit into said trust account.
20. Waiver.
Failure to enforce any provision of this Contract shall not be deemed a waiver of that provision.
Waiver of any right or power arising out of this Contract shall not be deemed waiver of any other
right or power.
21. Severability.
In the event any term or condition of this Contract or application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other terms conditions, or applications of
this Contract which can be given effect without the invalid term, condition, or application. To this
end the terms and conditions of this Contract are declared severable.
22. Notices.
All notices, requests, demands, consents and other communications hereunder shall be in writing and
shall be deemed to have been duly given when either (a) personally delivered; or (b) when deposited
via certified mail, return receipt requests, postage prepaid to the intended recipient set forth below:
If to the AGENCY: Dynamic Collectors, Inc.
Attn: Kevin Klumper
790 S. Market Blvd.
Chehalis, WA 98532
If to the COURT: Port Orchard Municipal Court
Attn: Sharon Ells
216 Prospect St
Port Orchard, WA 98366
Phone: (360) 876-1701
23. Record Inspection.
The COURT and its staff shall have access to the books, documents, papers and records of the
AGENCY; which are directly pertinent to this Contract. The AGENCY shall allow inspection of
such information upon request from the COURT.
24. Audit.
The AGENCY will permit the COURT to audit court assigned judgments. Audits will be done at the
AGENCY'S office on any accounts pertinent to this agreement. The AGENCY will be notified one
week in advance that the COURT personnel will be conducting an audit and a time set for said
procedure that is convenient for the AGENCY and the COURT.
25. Nondiscrimination.
In doing the work herein described, the AGENCY shall not discriminate on the basis of race, religion,
sex, sexual orientation, age, national origin, disability or any other protected class consideration.
26. Beneficiaries to Contract.
This Contract is entered into for the benefit of the COURT and the AGENCY. No third -party
beneficiaries are intended to be created or are created hereunder and no other party can derive any
benefit here from.
27. Entire Contract.
This Contract constitutes the entire understanding between the AGENCY and the COURT regarding
collection services provided to the COURT by the AGENCY, and may not be modified except by
written agreement signed by both parties. This Contract supersedes any prior Contract, unless
incorporated herein by reference.
28. Choice of Law and Venue.
This Contract shall be interpreted according to the laws of the State of Washington. Any judicial
action to resolve disputes arising out of this Contract shall be brought in Lewis County Superior
Court.
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In I NESS WHEREOF, the parties have executed the Contract on this day of
l , 201,13'.j
DYNAMIC COLLECTORS, INC. PORT ORCHARD MUNICIPAL COURT
BY: �� A i BY:
/Kevi K-Z
ump r Printed Name�.1���
President Title: �C�.,I
ADDRESS:
790 S. Market Blvd.
Chehalis, WA 98532
DATE:
ATT ST:
, &V Q Is
Printed Name:
Cou t Administrator
ADDRESS:
216 Prospect St
Port Orchard, WA 98366
(71
DATE:
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