We Are The Best Choice For Commercial Collections
McKenzie, Becker & Stevens
EXPLANATION OF SERVICES AND SCHEDULE OF CHARGES
1. “HOLD HARMLESS” CLAUSE - Creditor shall defend, indemnify and hold harmless MBS, its agents and employees, from and against all liabilities losses, claims, demands, suits, actions, damages or expenses (including reasonable attorney’s fees) of every nature or description arising out of or from any of the following: (i) any amendments to the schedule of rates for services being provided to the creditor by MBS; (ii) the truth and accuracy of the information provided to MBS by the creditor; (iii) the validity and lawfulness of creditor’s claim against the debtor; or (iv) any acts, omissions or claims of an attorney relating to any account provided by MBS on creditor’s behalf.
2. MBS shall have the right to endorse for deposit and collection, in the name and on behalf of claimant, remittances received on accounts placed with us for collection, and to deduct from such remittances our authorized charges.
3. FORWARDING SERVICE - With respect to each account accepted by MBS for collection, MBS may make the collection ourself or forward on behalf of claimant the same collection to an attorney or attorneys who are to be claimant’s attorneys or agents. If claimant does not designate the attorney to whom any particular account or accounts shall be forwarded on its behalf, MBS is hereby authorized and instructed as claimant’s agent to select an attorney for collection, (the name and address of attorney being promptly furnished to claimant) subject to charges not in excess of those referred to hereinafter, unless higher charges are agreed to by claimant. Any attorney to whom an account or accounts are forwarded, as herein authorized, is to act in his professional capacity on behalf of the claimant and shall be subject at all times to claimant’s direction and control. Our employment is that of claimant’s agent in exerting our own proper efforts to effect collections and with respect to accounts forwarded to attorneys, to conduct as a convenience to claimant, the necessary correspondence with such attorneys with the understanding that the attorney is claimant’s direct representative and the claimant and attorneys are, at all times, free to communicate directly with one another. MBS is not to be responsible for any losses caused by the act or omissions on the part of said attorneys or agents.
The forwarding of accounts to attorneys or others, on claimant’s behalf, and conducting as a convenience to claimant the necessary correspondence with those to whom accounts are forwarded, in accordance with instructions from claimant. The total charges for Forwarding Service, including charges of attorneys, are usually a minimum of 35% of amount collected. There are additional charges by attorneys when suits or other legal proceedings are authorized by claimant consisting of suit fees, advance costs and, in some instances, a retainer.
These services are available except where prohibited. Accounts withdrawn or settled directly are subject to charges for the service the accounts are in at the time MBS receives notice from claimant, or otherwise learns of such event. MBS at all times reserves the right to withhold any monies due to claimant, and to deduct service fees due MBS that have not been paid, for the purpose of setting off any and all unpaid amounts. MBS reserves the right to charge a fee herein identified as “discovery” for identifying those claims that have been paid one month or longer before being placed for collection, at a rate of 12 1/2%, with the same rate applicable to merchandise accepted by claimant as partial or full settlement, herein referred to as “merchandise return.”
4. Any charges by MBS to claimant on direct payments or otherwise, not settled within 60 days of billing can automatically be recovered from any monies owed by MBS to claimant.
5. To compensate MBS for its efforts on Accounts that Client opts to withdraw (regardless of the reason for such withdrawal), it is understood and agreed that if Client withdraws any Accounts from MBS within ten (10) days from the Account Placement Date for such Account, Client shall pay commission to MBS equal to twelve and a half percent (12.5%) of the full principal amount to have been collected for such Accounts (but without any presumption of additional collections for penalties, interest, attorneys’ fees, etc); and if such withdrawal occurs after such ten (10) day period, then the full commissions shall be paid on such amount to have been collected on such Account, even though no such collection in fact shall have been made, due to the withdrawal . Notwithstanding the previous sentence, however, any material absence or failure of support when requested, of the Client by MBS, or any active or passive hindrance by the Client of the MBS’s efforts with respect to any Account, shall entitle MBS to full collection fees without any reduction whatsoever, even during the initial ten (10) day period.
6. MBS’s compensation shall be on a contingent fee basis in accordance with MBS’s Published Rate Schedule. MBS will be entitled to fees on any money or returns received in any matter on or after the date of the initial placement of the Account by Client to MBS (the “Account Placement Date”).
Copyright © 2001- 2014 McKenzie, Becker & Stevens, Inc.
P.O. Box 817
Sharon, CT 06069
Tel. (860) 435-7500
Fax: (860) 435-0025