Terms & Conditions
ABC-AMEGA DELINQUENT RECEIVABLE COLLECTION TERMS & CONDITIONS - SERVICE AGREEMENT
2. Once ABC-AMEGA accepts the account for collection, the creditor shall not place the account with any other third party without ABC-AMEGA’s permission, or prematurely to withdraw the case. If withdrawn, or if the creditor takes any material action to prevent ABC-AMEGA’s ability to collect the account, ABC-AMEGA’s full fees will be due and payable as though the full amount of the account has been collected per Term 3 of this agreement.
3. Should legal action or arbitration be necessary to collect the debt, ABC-AMEGA will obtain the creditor’s prior approval. The creditor must answer ABC-AMEGA’s suit/arbitration request within one month. Should the creditor authorize litigation/ arbitration, an additional 10% suit fee (over and above the standard commission rate) is charged and is generally contingent upon collection. However, a portion of that 10% may be requested by the attorney as a non-contingent advance to be applied against a contingent suit fee. Court costs (or other judicial expenses or arbitration costs) are required up-front and are not part of the suit fee. Attorney’s fees for defense of a counterclaim may be subject to separate compensation arrangements.
4. In some countries, attorneys/agencies will not accept contingent fees. In these cases, ABC-AMEGA will inform the creditor the costs of assigning a claim to our correspondent attorney/agency in the debtor’s country and obtain the creditor’s express prior approval before handing over the claim to the attorney/agency for amicable settlement or legal action.
5. When merchandise is recovered in lieu of cash payment, ABC-AMEGA’s fees are charged based on one-half (50%) the value of the recovered merchandise and then in accordance with Term 3 of this agreement.
6. Should ABC-Amega discover that an account was paid by the debtor prior to ABC-AMEGA receiving the claim, one-half (50%) of the normal fee will be charged on the amount paid to the creditor.
7. When successful in collecting interest, ABC-AMEGA will charge a rate of two (2) times the fee pertaining to the principal amount of the claim as specified in Term 3 above for the interest collected.
8. In the unusual event that ABC-AMEGA is unable to locate a creditor for the purpose of remitting funds collected on a claim, a custodial fee will be deducted from the collected funds while ABC-AMEGA attempts to locate the rightful party to whom the proceeds are due.
9. The creditor shall provide ABC-AMEGA all relevant supporting documents and render all assistance requested by ABC-AMEGA regarding the case. If the debtor intends to avoid ABC-AMEGA and tries to settle the account directly with the creditor after the creditor places the account, the creditor shall instruct the debtor to deal with ABC-AMEGA. If the creditor refuses to provide such assistance requested by ABC-AMEGA, ABC-AMEGA may assess its fees in accordance with Term 2 and Term 3 of this agreement.
10. Once the creditor places an account with ABC-AMEGA for collection, the creditor must pay ABC-AMEGA the agreed fees for all kinds of settlements the creditor directly receives from the debtor, including cash recovery, returned merchandise, and other settlements as though ABC-AMEGA directly received the money or other settlement value. Invoices are due upon receipt.
11. Any settlement offers received by ABC-AMEGA will be passed on to the creditor for review and response. If the creditor fails to respond within 30 days, and ABC-AMEGA considers the settlement offer fair and equitable, ABC-AMEGA will send the creditor a final request for response via overnight courier. If the creditor still fails to respond within 10 days, ABC-AMEGA is authorized to accept the settlement.
12. ABC-AMEGA shall protect the creditor’s interests and keep all information regarding the claim confidential. ABC-AMEGA will report to the creditor any development involved in collecting the account in a timely manner.
13. Any controversy or claim arising out of, or relating to, this agreement shall be determined by arbitration in accordance with the International Arbitration Rules of the American Arbitration Association. The place of arbitration shall be Erie County New York, the number of arbitrators shall be one, the language of the arbitration shall be English, and both parties agree to waive their right to a hearing; that is, both parties agree that the arbitration shall be done on the face of the documentary evidence and written briefs provided to the arbitrator by the parties, thus permitting the arbitrator to render an award as a result of a summary procedure. The losing party shall bear all costs, fees, expenses relating to said arbitration, including but not limited to attorneys’ fees.
14. If this account is given to ABC-AMEGA by intermediary for the actual creditor, intermediary hereby warrants the actual creditor received, understands and concurs with these terms and conditions. The actual creditor and the intermediary are equally and severally bound by the terms and conditions of this agreement.
16. Once an account is closed by ABC-AMEGA, the physical file and related file information in ABC-AMEGA's system will be kept for a maximum of one year.