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Bt <br /> 5. City of Everett Residents. It is agreed by both parties to this Agreement that residents of City of <br /> Everett Fire Department's service area at the time of service are not subject to collection activities under <br /> the terms of the Agreement. In the event that such an account is assigned,both parties agree that City <br /> may withdraw the account with notice at no charge to City and will do so before resuming direct <br /> collection activity. In the event that legal action has commenced on such an account City shall reimburse <br /> Fairway their expended filing and service fees. <br /> 6. Communications. City agrees to cooperate with Fairway in the recovery of said accounts and will <br /> discontinue any direct effort to contact or collect from the debtors on assigned accounts. City will direct <br /> all communications on collection accounts to Fairway and will make no agreement for payment <br /> arrangements or settlement on accounts assigned to Fairway. Fairway recognizes that some debtors may <br /> initiate communication with City after assignment,and it is expected that City will direct all <br /> communication from consumers to Fairway. Payments received by City on assigned accounts will be <br /> forwarded to Fairway upon receipt. The City will not designate assigned accounts as paid-in-full without <br /> written concurrence from Fairway. <br /> 7. Identifying Account Number. City shall provide an identifying account number if available and <br /> establish the date of delinquency for each debt assigned to allow agency to comply with provisions of the <br /> Fair Credit Reporting Act. Where an account number is not provided,Fairway will assign an identifying <br /> number to the account. <br /> 8. Withdrawal of Account. Within the period of assignment,City may withdraw an account if it is <br /> determined by City and Fairway that the account was placed in error for reason of: determination that the <br /> wrong individual has been identified as the responsible party;the underlying facts on an account are <br /> determined to be erroneous; continuation of efforts to collect may create potential liability to City. In the <br /> event that an account is withdrawn after collection activity has begun,where payments are being made, or <br /> where legal action has been taken, City shall pay Fairway its commission at the normal rate and reimburse <br /> Fairway its legal costs advanced, including attorney fees,where appropriate. City recognizes that in <br /> withdrawing an account Fairway is entitled to a cancellation fee up to the regular commission rate due <br /> under this Agreement. <br /> 9. Compensation. <br /> A. The City shall pay Service Provider only for completed Work and for services actually rendered <br /> which are described herein. Such payment shall be full compensation for Work performed or services <br /> rendered, including, but not limited to, all labor,materials, supplies, equipment, and incidentals necessary <br /> to complete the Work. <br /> B. Service Provider acknowledges that unless otherwise agreed to in writing all accounts are assigned <br /> to Fairway on a contingency basis. Fairway shall advance funds necessary for legal action and shall <br /> retain legal costs, attorney fees, and check damages as they are recovered. It is understood that Fairway <br /> will add interest to the principal balance assigned at the rate of 12%per annum. Service Provider shall be <br /> paid such amounts and in such manner as follows: Fairway shall return to City 100% of the amount <br /> collected of consumer debts assigned, after recovery of any legal costs. Collection fees shall be added to <br /> City accounts (pursuant to the authority of RCW 3.02 and RCW 19.16.500) at the rate of 40% of the <br /> principal amount assigned; the rate becomes 50% on accounts requiring legal action to be taken or <br /> requiring forwarding to an agency outside Washington or Oregon. When collected,the collection fee and <br /> accrued interest shall be retained by Fairway and will serve as Fairway's commission for its collection <br /> efforts. Payments received shall be posted as follows: 60% of funds received shall be posted towards <br /> City balance and 40% towards collection costs, interest, and legal cost recoveries. Fairway shall remit to <br /> City monies due from recoveries within thirty days from the end of the month in which collected funds <br /> Page 2 6 <br />