Debt Repossession Agreement

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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



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         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 persist until such time as payment is made in full. Any waiver of
       cessation shall not be deemed to be a waiver of any past or future right of cessation or
       collection of any amounts owed, and Agency shall have no liability for failure to collect
       any amounts owed during any such period of cessation. Fees due according to the
       Repossession Fee Schedule shall continue to accrue during any such period of cessation.

    4. REPORTING

    A. The Agency shall submit to the Creditor monthly reports in respect of its attempts with
       respect to repossession and collection of the Accounts. The monthly reports from the
       Agency shall include the Agency’s repossession file number and the progress of the
       repossession and collection of the Accounts.

    5. SETTLEMENT OF ACCOUNTS

    A. The Agency shall promptly notify the Creditor of any proposed settlement of any of the
       Accounts. The Agency agrees that it shall not enter into or bind the Creditor into the



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         settlement of any of the Accounts without the Creditor’s prior written authorization to
         settle any of the Accounts. Agency shall remit any amounts collected with respect to the
         Accounts within ___ [Instruction: Insert number of days.] days to creditor into an
         account to be determined by Creditor, in its sole discretion. At no time shall Agency
         endorse, cash, deposit, pledge, trust or otherwise hypothecate or utilize any amounts
         collected pursuant to this Agreement into any account or otherwise except as directed in
         writing by Creditor.

    6. AGENCY’S BOOKS AND RECORDS

    A. The Agency agrees that it shall keep its books and records in respect of the Accounts
       accurate and up-to-date at all times. The Creditor shall have the right to inspect the
       Agency’s books and records at any time, provided the Creditor gives the Agency
       _______ (___) [Instruction: Insert number of days.] days’ advance written notice of its
       intention to do so.

    7. INDEPENDENT CONTRACTOR

    A. Nothing contained in this Agreement and the relationship created between the parties
       hereby shall, directly, or indirectly, constitute the Agency or any of its employees, agents
       or subcontractors as agent or servant of the Creditor and further, nothing herein shall
       operate or be construed to relieve the Agency of any duties or obligations imposed upon
       it as an independent contractor.

    8. TERMINATION OF AGREEMENT

    A. The Creditor may terminate the repossession and collection services of the Agency at any
       time with or without cause, by providing the Agency with ________ (___) [Instruction:
       Insert number of days.] days’ advance written notice of the Creditor’s intent to
       terminate this Agreement. Upon such notice, 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.

    B. Upon the Agency receiving such notice, the Agency shall immediately cease all
       repossession and collection efforts to collect the Accounts and shall immediately provide
       to the Creditor all files and any amounts of the repossession and collection of the
       Accounts not previously remitted by the Agency to the Creditor.

    C. In the event the Agency receives any payment for the Accounts after the receipt of the
       notice from the Creditor of its intent to terminate this Agreement, the Agency agrees that
       it shall remit any and all such payments to the Creditor within _______
       (___)(___)[Instruction: Insert number of days.] days of receipt of same.

    D. Agency shall be permitted to cancel upon ___ (___) [Instruction: Insert number of
       days.] days’ notice upon a material breach by Creditor.



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    9. REPRESENTATIONS AND WARRANTIES OF AGENCY

    A. The Creditor acknowledges that the Agency has provided the Creditor with no
       representations and warranties as to the Agency’s success in the repossession and
       collection of the Accounts.

    10. GENERAL PROVISIONS

    A. All repossession and collection services performed by the Agency will be performed in a
       professional, workman like manner which will follow all collection procedures laws
       promulgated by any lawful governmental or quasi-governmental body or which are the
       result of a lawful court decision in the jurisdiction in which Agency is collecting the
       Accounts and which will not reflect poorly on the Creditor. It shall be the Agency’s
       obligation to train its agents in such proper procedures and ensure such procedures are
       followed at all times during the term of this Agreement. Agency shall be responsible to
       ensure the legality and appropriateness of such procedures during the term of this
       Agreement.

    B. This Agreement constitutes the entire agreement between the parties hereto with respect
       to the specific subject matter hereof and supersedes all prior agreements or
       understandings of any kind with respect to the specific subject matter hereof.

    C. Headings are not to be considered part of this Agreement, and are included solely for
       convenience of reference and are not intended to be full or accurate descriptions of the
       contents of any section.

    D. In this Agreement, words importing the singular number include the plural and vice
       versa, words importing the masculine gender include the feminine and neuter genders;
       and words importing persons include individuals, and proprietors, corporations,
       partnerships, trusts and unincorporated associations.

    E. The invalidity or unenforceability of any provision of this Agreement or any covenant in
       it shall not affect the validity or enforceability of any other provision or covenant in it and
       the invalid provision or covenant shall be deemed to be severed.

    F. Subject to the provisions hereof, this Agreement may not be assigned, in whole or in part,
       without the prior approval of all parties hereto. Subject thereto, this Agreement shall
       inure to the benefit of and shall be binding upon the parties hereto and their respective
       successors, heirs, executors, administrators, other personal and legal representatives
       (including trustees and receivers in bankruptcy) and permitted assigns.




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    G. This Agreement may be executed in any number of counterparts, each of which when so
       executed shall be deemed to be an original and such counterparts together shall constitute
       one agreement deemed to be dated as of the date hereof.

    H. This Agreement shall be governed by and construed in accordance with the laws of the
       State of _________________ (___) [Instruction: Insert state.] and enforced therein.

    I. Waiver by either party of any right or obligation in this Agreement shall not be deemed to
       be a waiver of any past or future right or obligation in this Agreement.

       IN WITNESS WHEREOF the parties have duly executed this Agreement under their
hands and seals as of the day and year first written above.




                                                              (CREDITOR)
                                                              Per:



                                                              Name:
                                                              Title:
                                                              I have authority to bind the Company.

                                                              (AGENCY)
                                                              Per:



                                                              Name:
                                                              Title:
                                                              I have authority to bind the Company.




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                                                 SCHEDULE “A”

                                    REPOSSESSION FEE SCHEDULE




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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