Docstoc

Debt Repossession Agreement

Document Sample
Debt Repossession Agreement Powered By Docstoc
					This Debt Repossession Agreement is used when a creditor engages a collection
agency for the repossession and collection of outstanding debts due and owing to the
creditor. This document contains the material terms and conditions of the agreement
including the services to be performed, repossession fees, and the term of the
agreement. It contains numerous standard provisions that are commonly included in
these types of agreements, and may be customized to address the specific needs of the
parties. This document is useful to creditors and collection agencies when entering into
an agreement.
                        DEBT REPOSSESSION AGREEMENT

      THIS DEBT REPOSSESSION AGREEMENT (the “Agreement”), made this _____
day of _________________, 2_____, [Instruction: Insert date.] by and between
_______________ [Instruction: Insert Creditor name.] (the “Creditor”) and
________________ [Instruction: Insert name of collection agency.] (the “Agency”).

       WHEREAS, the Creditor is desirous to obtain the services of the Agency to act on the
Creditor’s behalf in the repossession and collection of outstanding accounts due and owing to the
Creditor;

       AND WHEREAS, the Agency is desirous to offer its debt repossession services to the
Creditor pursuant to the terms and conditions contained herein.

        NOW THEREFORE in consideration of the mutual promises and agreements contained
in this agreement, and other good and valuable consideration the sufficiency of which is hereby
acknowledged, the parties agree as follows:

    1. REPOSSESSION SERVICES

         A.     The Agency shall act on the Creditor’s behalf for the sole purpose of the
         repossession and collection of outstanding Accounts (the “Accounts”) due and owing to
         the Creditor [Option: If only certain accounts, attach the list of accounts as a
         Schedule.]. The Agency acknowledges and agrees that nothing contained in this
         Agreement shall be deemed to convey to the Agency any right, title or interest in and to
         the Accounts.

         B.      The Agency shall perform the repossession and collection services for and on
         behalf of the Creditor within the following territory ___________________________.
         [Instruction and Option: Insert territory. Creditor and Agency may wish to state
         whether or not such repossession and collection services are exclusive within the
         territory.]

         C.      The Creditor shall provide Agency with a list of last known contact information
         for each of the accounts. To the extent such last known contact information is incorrect;
         it shall be the responsibility of Agency to determine updated contact information.
         [Option: This provision can be customized to discuss types of contact information
         and the responsible party for providing such initial information and obtaining
         updated information.]

    2. TERM OF AGREEMENT

    A. The Creditor and the Agency hereby agree that the Term of this Agreement shall be for a
       period of __________ (_____) months/years (the “Term”). The Term shall commence



© Copyright 2011 Docstoc Inc. registered document proprietary, copy not               2
         on the ____ day of _________, 2____ and shall end on the _____ day of __________,
         2_____. [Instruction: Insert applicable term information.]


    3. REPOSSESSION FEES

    A. The Repossession Fees payable to the Agency by the Creditor for the repossession and
       collection services is attached hereto as Schedule “A”.

    B. The Creditor shall pay the Repossession Fees due and owing to the Agency on a monthly
       basis in accordance with the Repossession Fee Schedule attached hereto as Schedule “A”.
       [Option: The parties may determine the Repossession Fee Schedule to be based on a
       percentage to be collected. If so, language of this paragraph should reflect such
       determination.] The Creditor shall pay the Repossession Fees by no later than the
       _____ [Instruction: Insert due date.] day of each and every month to the Agency.

    C. The Agency reserves the right to increase its Repossession Fees throughout the Term of
       this Agreement by providing _____ (___) [Instruction: Insert applicable number of
       days.] days’ advance written notice to the Creditor of such increase. Upon any such
       notice of increase, Creditor shall have ___ [Instruction: Insert applicable number of
       days.] days to cancel this Agreement without penalty. Upon such cancellation, no further
       obligation shall exist between the parties, except that Creditor shall remain liable to pay
       any fees due and owing as of the day the Agency receives notice of the cancellation, and
       except that Agency shall remain liable to remit payment of any fees it receives after the
       cancellation.

    D. Agency, in its sole discretion and at its sole option, shall have the right to cease
       repossession and collection services at any time payment pursuant to the Repossession
       Fee Schedule is not received within 5 business days of same becoming due and owing,
       and such cessation may persis
				
DOCUMENT INFO
Description: This Debt Repossession Agreement is used when a creditor engages a collection agency for the repossession and collection of outstanding debts due and owing to the creditor. This document contains the material terms and conditions of the agreement including the services to be performed, repossession fees, and the term of the agreement. It contains numerous standard provisions that are commonly included in these types of agreements, and may be customized to address the specific needs of the parties. This document is useful to creditors and collection agencies when entering into an agreement.
This document is also part of a package Settling your Debt 5 Documents Included