Final Demand Collection Service Agreement
The agreement made on date between CMI Credit Mediators Inc. (“CMI”) located in Upper Darby, PA 19082 and client company name ("Client") located at client city, state, zip.
Final Demand Service
A.CMI Credit Mediators Inc. offers the use of Final Demand Notices. This service is FREE to our clients who are users of our website FreeFinalDemand.com. We will send a final collection notice to their accounts on our stationery to help them affect payment of their bill.
B.The time period for a final demand is ten (10) days plus set up time. The final date will always fall on a business day and will be clearly marked on the letter and on the listing report for the client.
C.Final demands will only be sent on commercial accounts that have a minimum balance of $400 and are less than 1 year old from the oldest commercial invoice.
D.Only one free final demand will be sent per debtor account.
E.Clients can report their payments on the FreeFinalDemand.com website. The day that the payment is reported will be date used to determine if the payment has been received within the “free” time period.
F.Payments, full or partial, received by the client and reported to CMI on or before the final date of the free demand period are free and incur no collection charges.
G.Accounts placed on Final Demands cannot be withdrawn unless the balance is paid in full or a bankruptcy or foreclosure has been filed. H.All remaining unpaid balances on the “final date” will roll to CMI Credit Mediators Inc. for Direct Collect Service.
I.There is no cross in the mail period for final demands. Any payments received by the client after the final date will be charged CMI’s standard fee of 25%.
Direct Collect Service
J.CMI will pursue the collection of overdue accounts or debts owed to the client that have rolled from FreeFinalDemand.com on the day after the Final Date of the “free” period. Each debtor will be personally contacted by personnel of CMI to arrange prompt remittance. Furthermore, CMI will perform this work in an ethical and professional manner.
K.Funds collected by CMI shall be deposited into a Client Trust account until released to the client. CMI shall remit client funds with an itemized statement twice per month on t he 7th and 21st of the month following collection. CMI will file a bond for the protection of creditors in accordance with applicable applications.
L.As a reporting member of Experian Credit Bureau, CMI will report any unpaid balances 30 days after rolling to direct collect. Do you want your debtors reported to Experian? Y N
M.CMI can also add ongoing interest to the debtor accounts after rolling to direct collect. The rate is 1% per month on the unpaid balance. Do you want interest added to your accounts? Y N
N.If suit is recommended, the Client will be fully apprised of all costs associated with the commencement of litigation. The Client is not obligated to file suit or use CMI’s recommended attorneys.If the Client authorized suit, all costs associated with litigation will be outlined in advance and authorized by the Client in writing.
O.If applicable, CMI agrees to provide the Client with free online access and proper training of our CollectNet software. CMI also agrees to provide monthly excel reports if requested by the client.
P.CMI will receive compensation for its service by deducting a fee from the amounts collected from the Client's debtors. The amount of fee shall be expressed as a percentage (%) of the total of the referred accounts reported after the listing or final date. The percentage for this agreement is 25%.
Q.Direct payments to the Client of a referred debtor account constitute full or partial payment and CMI will charge the Client the 25% determined fee.
R.Client must report direct payments promptly. If the Client issues a credit for an account placed for collection or accepts a return of merchandise, the Client shall promptly notify CMI and the fee charged shall be 15%.
S.CMI will not be responsible for any error or omission by the Client. This Agreement shall be enforced in accordance with the laws of the Commonwealth of Pennsylvania, Client or Agency may terminate this agreement upon thirty (30) days prior written notice to the other. Notices shall be sent by certified or registered mail. Accounts placed with CMI prior to termination notice shall be retained and worked by CMI until their conclusion.
