Collection Terms and Conditions
This Agreement becomes effective upon the Creditor’s placement of one or more accounts (“Accounts”) for collection with the Agency.
Agency Fees. Unless otherwise agreed and confirmed in writing by the Agency, the Creditor agrees to pay the Agency the following commissions on all gross amounts collected, payable in U.S. dollars:
- 25% for Accounts aged up to 450 days from the oldest invoice date; 35% if placed by Leib with an attorney. There is a surcharge of 7% if over 450 days.
- For international Accounts, the Creditor will also pay a 5% surcharge for currency conversions plus any international wire charges, if applicable.
Non-Cash Consideration. If the Creditor accepts returned goods, credits, or other non-cash consideration the commission shall be calculated on 50% of the outstanding balance at time of placement, unless otherwise agreed in writing.
Direct Payments To Creditors. If Creditor receives payment directly from a debtor (including after suspension or withdrawal) Creditor shall (i) Notify Agency within five (5) business days of receipt; and (ii) Remit Fees within fifteen (15) days of receipt.
Nature of Accounts. Creditor represents and warrants that: All accounts are commercial/business debts that are valid and legally enforceable, not previously handled by other agencies, and to Creditor’s knowledge, are not subject to bona fide disputes.The Creditor also warrants that it has the authority to place the Accounts for collection, and shall provide documentation and assistance reasonably necessary to support collection efforts. Creditor agrees to indemnify and hold Agency harmless for any claim arising from a breach of these representations.
Handling of Funds. Agency is authorized to: endorse and deposit instruments received; hold funds in trust pending clearance; and deduct earned commissions, attorney fees, and authorized charges prior to remitting net proceeds.
Attorney Placement and Suits. In the absence of contrary specific instructions, where the Agency determines such action is necessary, it is authorized to select attorneys and to correspond with them, handling information, reports, etc., on behalf of the Creditor. The Creditor and the attorneys may always communicate directly as they are the Creditor’s attorneys, not the Agency’s. The Agency is not responsible for any acts or failure to act of such attorneys. The Creditor shall be responsible for court costs, suit fees, or any additional attorney fees or costs that have been agreed upon.
Withdrawal or Suspension. Accounts may be suspended or withdrawn upon written notice by email, confirmed by phone. However, the Agency shall be entitled to immediate compensation as if the Account had been fully collected by the Agency if (i) the Creditor has received or been promised payment, (ii) Agency has commenced efforts that it reasonably expects to result in partial or full recovery, (iii) an agreement to pay or payment is received by Agency or Creditor party within 120 days of suspension or withdrawal, or (iv) legal proceedings have commenced.
Right to Refuse or Terminate. The Agency reserves the right to refuse placement of Accounts or to suspend or terminate services if the Creditor fails to reasonably cooperate, provide necessary documentation, or if continued collection activity is deemed commercially impracticable or unfeasible.
Limitation of Liability. Agency shall not be liable for consequential, incidental, or special damages, and Agency’s total liability shall in no event exceed the commissions earned on the specific Account giving rise to the issue.
Governing Law and Venue. This Agreement shall be governed by the laws of the State of New Jersey. Venue shall lie exclusively in Mercer County, New Jersey. The parties waive trial by jury.
For questions or additional information, please contact info@leibsolutions.com.
Rev. 2-13-26