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2 <br /> At the appointed time proposals shall be opened and the names of the responding firms shall be read <br /> publicly. Cost amounts will not be revealed at the proposal opening. <br /> III. DEFINITIONS <br /> A. Claim: any obligation for the payment of money or thing of value arising out of any agreement or <br /> contract, express or implied. <br /> B. Client or Customer: any person authorizing or employing a collection agency to collect a claim. <br /> C. Collector's fee: the percentage of the amount collected that the contractor will charge over and <br /> above the principal amount assigned. <br /> D. Debtor: any person or company owing or alleged to owe a claim. <br /> E. FDCPA: Fair Debt Collections Practice Act. <br /> F. In-state legal: accounts within the State of Washington requiring legal actions primarily on filed <br /> warrants and judgments. <br /> G. Judgments: a court act creating or affirming an obligation as a debt. <br /> H. NSF: Non Sufficient Funds <br /> I. Recovery rate: The percentage amount that the client would receive in final satisfaction of NSF <br /> checks or claims due. <br /> J. Out of state legal: accounts out of the State of Washington requiring legal actions primarily on <br /> filed warrants and judgments. <br /> IV FEES AND SCOPE <br /> The purpose of this RFP is to establish a debt collections services contract. Debt collection services include <br /> collection of debt and NSF checks. <br /> A. Collection Fee: All collection agency costs incurred by the city in the collection of amounts owed <br /> to the city shall be assessed to the debtor in addition to any amounts owed where permitted by law <br /> (Ord. 2231-97 § 3, 1997). <br /> 1. Collection agency fees shall beadded to principal amount of debt assigned within the limits set <br /> forth by RCW 19.16.500. <br /> 2. Partial payments made on assigned accounts shall be remitted to the city based upon the same pro <br /> rata formula applied to accounts that are paid in full. By way of illustration, assuming a 35%add- <br /> on fee: $100 principal(includes penalties and interest)x 135%= $135 balance to be collected; a <br /> $50 payment received would be remitted as follows: $37.04 to the city and$12.96 to the collection <br /> agency($35=25.9259%of$135 and$12.96=25.9259%of$50). <br /> B. NSF checks shall be assessed a penalty of$25 per incident(Ord.2231-97 § 2, 1997). <br /> C. Interest shall accrue on unpaid debt at the rate of twelve percent per annum. The interest shall be <br /> added to the account by the collection agency, collected by the collection agency, and, as paid by <br /> the debtor, remitted in full to the city by the collection agency(Ord. 2231-97 § 1, 1997). <br /> 9 <br /> 2009-036—RFP,Debt Collection Services 6 of 13 <br />