Collection Terms and Conditions
This Agreement becomes effective upon the Creditor’s placement of one or more accounts (“Accounts”) with the Agency for collection.
1. Nature of Collection Accounts
Creditor represents and warrants that all Accounts are commercial/business debts that are valid and legally enforceable, and unless disclosed (i) have not been previously placed with another collection agency, and (ii) are not subject to any known bona fide disputes.
Creditor further represents that it has full authority to place such Accounts for collection and agrees to provide documentation and assistance required to support collection efforts.
Creditor shall indemnify and hold Agency harmless from any claims, damages, or expenses arising from any breach of these representations.
2. Collection Agency Fees
Unless otherwise agreed in writing, Creditor agrees to pay Agency commissions on all amounts collected, whether received by Agency, Creditor, or any third party on Creditor’s behalf:
- 25% for Accounts aged up to 450 days from the oldest invoice date; 7% surcharge if over 450 days.
- 35% for Accounts placed with an attorney; 7% surcharge if over 450 days.
For international Accounts: A 5% surcharge applies where currency conversion is required, and applicable international wire or transfer fees shall be borne by Creditor
All fees are payable in U.S. dollars.
3. Non-Cash Consideration
If Creditor accepts returned goods, credits, or any form of non-cash consideration in settlement, the Agency’s commission shall be based on 1/2 the amount of the debt.
4. Direct Payments to Creditor
If Creditor receives payment directly from a debtor after the Account has been placed for collection, Creditor shall notify Agency within five (5) business days, and remit Agency’s commission within fifteen (15) days of receipt.
5. Handling of Funds
Agency is authorized to:
- Endorse and deposit instruments received
- Hold funds in trust pending clearance
- Deduct earned commissions, attorney fees, and authorized charges from the total funds held by the Agency (regardless of which specific Account generated the funds) prior to remitting the remaining proceeds to the Creditor.
6. Legal Cost Reserve
Creditor may elect to fund a legal cost reserve, maintained by the Agency, directly or from net Account collections. Such funds shall be held solely to facilitate the payment of attorney fees and related costs associated with collection activities on behalf of the Creditor. Any unused balance, net of amounts due Agency, shall be returned to the Creditor upon termination of this Agreement or upon written request.
7. Attorney Placement and Legal Action
Unless otherwise instructed, Agency is authorized to forward Accounts to attorneys for legal action where appropriate and to communicate with such attorneys on Creditor’s behalf. Attorneys act on behalf of the Creditor, not the Agency, and Agency bears no liability for acts or failure to act of attorneys. Creditor and attorneys may communicate directly at any time. Agency acts solely as a forwarding intermediary and is not responsible for the acts or omissions of any attorney. Creditor shall be responsible for all court costs, filing fees, and any additional legal fees as agreed with the attorney.
8. Withdrawal or Suspension of Accounts
Accounts may be withdrawn or suspended upon written notice by email and confirmed by phone. In such event, Agency shall be entitled to its full commission as if the Account were collected if any of the following occur: (i) Creditor has received payment, or entered into a payment agreement, within one hundred twenty (120) days following withdrawal or suspension; (ii) Creditor rejects a settlement opportunity presented by Agency; (iii) Agency has initiated material collection activity in connection with the Account, including debtor contact or settlement discussions; or (iv) Legal action has been initiated or authorized.
9. Right to Refuse or Terminate
Agency reserves the right to refuse placement of any Account or to suspend or terminate services if Creditor fails to reasonably cooperate, required documentation is not provided, or continued collection activity is deemed commercially impracticable or unfeasible.
10. Limitation of Liability.
Agency shall not be liable for any indirect, incidental, consequential, punitive, or special damages, including loss of profits or business interruption. Agency’s total liability shall not exceed the commissions earned on the specific Account giving rise to the claim.
11. Payment Terms.
Agency fees and costs are due as outlined herein. Any unpaid fees or costs shall accrue interest at 1.5% per month (or the maximum rate permitted by law).
12. 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 the right to trial by jury.
13. Entire Agreement.
This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements or discussions.
For questions or additional information, please contact info@leibsolutions.com.
Rev. 7/01/26