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HomeMy WebLinkAboutDynamic CollectionsDYNAMIC COLLECTORS, INC . 790 S MARKET BLVD, CHEHALIS, WA 98532 (360) 748.0420 0 (800) 464.3457 0 FAX (360) 748.0262 THlS CONTRACT made and entered into th is _-----"1_5""--__ day of _--'---=--=-->---==-"""'1-__ ' 2016 by Lower Kittitas County District Court, Ellensburg, Washington (hereafter called "COUR ") 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. 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. Ifthe 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 oftermination 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 direct 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, 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. 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 included, but 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. 6. Legal 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. A representative of the AGENCY will be made available to the COURT for the purpose of collection preparation. 6.2. The AGENCY will make all reasonable efforts to collect the COURT'S judgments without litigation. 6.3. Additional legal action 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. 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 Lower Kittitas County District Court, including, but not limited to, evidence of insurance against personal injury liability, comprehensive general liability, workers compensation and automobile liability insurance . The AGENCY's insurance shall name Kittitas County additional insured and said coverage shall be primary and non-contributory. Additionally, the AGENCY will provide a fidelity bond in the sum of $1 ,000,000.00 . Enclosed please see Attachment A: Certificate of Insurance. The AGENCY hereby waives all rights of recourse, including any right to which another may be subrogated, against Kittitas County for personal injury, including death, and property damage. The AGENCY will assume full responsibility for all loss or damage from any cause whatsoever to any tools, the AGENCY's employee-owned tools, machinery, equipment, or motor vehicles owned or rented by the AGENCY, or the AGENCY's agents, suppliers or contractors. 2 The AGENCY will have sole responsibility for ensuring the insurance coverage and limits required are obtained by subcontractors. 8. 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 colIection 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 ajudgment is withdrawn by the COURT, no fee will be due to the AGENCY for collection efforts on said judgment. 10. Uncollectible Accounts. In the event an account is deemed uncolIectible 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 Lower Kittitas County District Court, Kittitas County and aU elected officials, employees and agents of Kittitas County and the Lower Kittitas County District 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. CoUection charges shall be added by the COURT onto judgments assigned to the AGENCY at the time of assignment. The AGENCY will leave a $5.00 balance on the judgment portion owed until all collection charges, interest charges and legal fees have been paid in full. The AGENCY shall retain payment for services performed as set out hereafter: The collection costs will be based on the assigned amount. If the balance is $100.00 or less, the AGENCY will assign a collection cost equal to the full amount. Judgments over $100.00 will be assessed a collection cost of 50% of the assigned amount. Judgments over $100,000.00 will be assessed a collection cost of35% of the assigned amount. RCW 19.16.500 Partial payments will be split between the COURT and the AGENCY as follows: Payments shall be 3 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 of60% to the COURT and 40% to the AGENCY. 13. Interest Charges. The COURT authorizes the AGENCY to add interest to accounts at a rate of 12% and to disperse the interest 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. The AGENCY reserves the right to write-off interest balances under $5.00, or to stop charging interest on payroll deductions and post-dated check payment plans. The COURT will 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 statutes, state or local court rules, or case law which prescribe/allow a different method for receiving collection fees, the AGENCY shall modify its methods accordingly, upon instruction from the COURT. 15. Electronic Payments. The COURT authorizes the AGENCY to charge a party making an electronic payment a convenience fee in the amount of $5 .00 for processing the electronic payment unless prohibited by state law. 16. 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. 17. Bankruptcy. When an account becomes subject to bankruptcy proceedings, the AGENCY will cancel the account back to the COURT. 18. Reports and Remittance Schedule. The AGENCY and the COURT agree to the following reports and remittance schedule, subject to mutual modifications: 18.1. The AGENCY shall furnish the COURT with a computerized acknowledgment ofthe 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. 18.2. The AGENCY will furnish the COURT with a monthly report indicating all judgments currently assigned to the AGENCY. The report shall be an ALPHA list by judgment consumer name, the court assigned case number, dollar amount assigned, payments made to date and current status of each individual judgment. Such report will also provide a summary of all 4 assigned judgments by account status and the overall recovery percentage of dollars collected on behalf of the COURT. 19. 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. 20. 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 shall 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. AGENCY will transfer funds in the trust account to the COURT by means of a check mailed once per week to the address provided for that purpose by the COURT. The COURT authorizes the AGENCY to endorse cashiers checks and money orders made payable to the COURT for the purpose of deposit into said trust account. 21. 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. 22. 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. 23. 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: If to the COURT: Dynamic Collectors, Inc. Attn: Kevin Klumper 790 S. Market Blvd. Chehalis, WA 98532 Lower Kittitas County District Court Attn: Christine Luvera 205 W. 5th Avenue, Room 180 Ellensburg, W A 98926 5 24. Record Inspection. The COURT and its staff shaIl 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. 25. Andit. The AGENCY will permit the COURT to audit court assigned judgments. Audits will be done at the AGENCY'S office on any accounts that the COURT shall choose. 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. Upon receiving notice of a public records request or of pending litigation that may involve records related to this Agreement, the COURT will contact the AGENCY to discuss additional records retention. 25.1: Regulatory Review This contract is subject to review by any Federal or State auditor. The County or its designee shall have the right to review and monitor the financial and service components of this program by whatever means are deemed expedient by the County. Such review may occur with or without notice, and may include, but is not limited to, on-site inspection by County agents or employees, inspection of all records or other materials which the County deems pertinent to the Agreement and its performance, and any and all communications with or evaluation by service recipients under this Agreement. The Contractor shall preserve and maintain all financial records and records relating to the performance of work under this Agreement for 6 years after contract termination, and shall make them available for such review, within Kittitas County, State of Washington, upon request. 26. 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. 27. 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. 28. 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. 6 29. 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 subject to the provisions ofRCW 36.01.050. In WITNESS WHEREOF, the parties have executed the Contract on this _1~"'S,,--__ day of R:-b'f\J"o.-ro ,,( , 2016. DYNAMIC COLLECTORS, INCORPORATED BY: President ADDRESS: 790 S. Market Blvd. Chehalis, W A 98532 DATE: ~/Jzdf;t APPROVED this /5-rh day of/Ylfv,LliOI6 . LOWER KITTITAS COUNTY DISTRICT COURT BY: rinted Name: U~ Title: -::r-(}~~ ADDRESS: 205 W. 5th Avenue, Room 180 Ellensburg W A 98926 BOARD OF COUNTY COMMISSIONERS KITTITAS ~OU ?,y, WASHIN ~N __ \~ Approved as to form: \ Douglas R. Mitchell, SBA #22877 Deputy Prosecuting 7 KLUMp·2 OP 10: EA ACORD-CERTIFICATE OF LIABILITY INSURANCE I DATE (MMIDDIYYYY) ~ 12122/15 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES '.OW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED JRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies} must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER 360-748-0051 ~~~~~CT Emily E. Buss Virgil R. Lee & Son 360-748-3941 ri1g~o Extl:360-748-0051 I r~~ No): 360-748-3941 HUB International NW, LLC P.O. Box 1226 ~~DA~~SS: ebuss@lovstedworthington.com Chehalis, WA 98532 John 0 Thurston INSURER(S) AFFORDING COVERAGE NAIC# INSURER A: Mutual of Enumclaw 14761 INSURED Dynamic Collectors, Inc. INSURER B : 790 S. Market Blvd INSURERC: Chehalis, WA 98532 INSURERD: INSURER E : INSURER F: COVERAGES CERTIFICATE NUMBER' REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE I~~i'i I~~ I t~~M~i';W·() I t~~Tli6iJVv, UMITS LTR POLICY NUMBER GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 r--!::l~~~~':..!.u_ Kt:N I t:u A X COMMERCIAL GENERAL LIABILITY X X CPPOO1272703 12127115 12127116 PREMISES tEa occurrencel $ 300,000 I CLAIMS-MADE [K] OCCUR MED EXP (Anyone person) $ 10,000 ~ WA Stop Gap below PERSONAL & ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 2,000,000 r-- GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS· COMP/OP AGG $ 2,000,000 ~ POLICY n ~fR;: n LOC $ -~UTOMOBILE LIABILITY ,-- ii:~~~~~~~t~INGLE LIMIT $ 1,000,000 A ~ ANY AUTO CPPOO1272703 12/27115 12/27116 BODILY INJURY (Per person) $ ALL OWNED ,--SCHEDULED AUTOS AUTOS BODILY INJURY (Per accident) $ -r--NON·OWNED rp~~~Zc~d~t?AMAGE X HIRED AUTOS ~ AUTOS $ - $ UMBRELLA LlAB .H OCCUR EACH OCCURRENCE $ -EXCESS L1AB CLAIMS-MADE AGGREGATE $ OED I I RETENTION $ $ WORKERS COMPENSATION I WC STATU· I X IOTH- AND EMPLOYERS' LIABILITY TORY LIMITS ER YIN A ANY PROPRIETORIPARTNERlEXECUTIVE 0 CPPOO1272703 12/27/15 12/27116 E.L. EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) WASTOPGAP E.L. DISEASE· EA EMPLOYEE $ 1,000,000 If yes, describe under E.L. DISEASE · POLICY LIMIT $ 2,000,000 DESCRIPTION OF OPERATIONS below DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) Kittitas County is named as Additional Insured as required by written contract, as per CG 20 26 04/13. Waiver of Subrogation applies, as per CG 24 04 05/09 . Coverage is Primary and Non-Contributory, as per CG 20 01 04/13. CERTIFICATE HOLDER CANCELLATION KITTITA SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WilL BE DELIVERED IN Kittitas County ACCORDANCE WITH THE POLICY PROVISIONS. 205 W. 5th Avenue Ellensburg, WA 98926 AUTHORIZED REPRESENTATIVE g.Drt-& . .:JRw..-1;;t; I © 1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD POLICY NUMBER: CPP 0012727 03 COMMERCIAL GENERAL LIABILITY CG 2026 0413 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following : COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Kittitas County Information required to complete this Schedule, if not shown above, will be shown in the Declarations . A. Section II -Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: 1. In the performance of your ongoing operations; or 2. In connection with your premises owned by or rented to you. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. B. With respect to the insurance afforded to these additional insureds, the following is added to Section III -Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. CG 20 26 0413 © Insurance Services Office, Inc., 2012 Page 1 of 1 POLICY NUMBER: CPP 0012727 03 COMMERCIAL GENERAL LIABILITY CG 2404 0509 WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following : COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART SCHEDULE Name Of Person Or Organization: Kittitas County Information required to complete this Schedule, if not shown above, will be shown in the Declarations. The following is added to Paragraph 8. Transfer Of Rights Of Recovery Against Others To Us of Section IV -Conditions: We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products- completed operations hazard". This waiver applies only to the person or organization shown in the Schedule above. CG 24040509 © Insurance Services Office, Inc., 2008 Page 1 of 1 o COMMERCIAL GENERAL LIABILITY CG20010413 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NONCONTRIBUTORY - OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART The following is added to the Other Insurance Condition and supersedes any provision to the contrary: Primary And Noncontributory Insurance This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that: (2) You have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured. (1) The additional insured is a Named Insured under such other insurance; and CG 2001 0413 © Insurance Services Office, Inc., 2012 Page 1 of 1