|This agreement is made between Kinum, Inc. ("Kinum,"
"We," or "Us") and Company Name as defined in the Order Form, referred
to as "Client" or "You." Page 1 refers to the online order form.
If an account is assigned, you agree to immediately stop your collection
efforts and refer all communication with the debtor back to Kinum. In the
Collect phase, debtors will be instructed to make payments to us, but if
they pay you directly, we are still entitled to our commission and fees. We
will pay you what we collect, after deducting the commission based on the
rate found on page 1. If our in-house collection team is unsuccessful in
collecting the debt, we may send it to an attorney to make additional
. This Agreement begins the day we sign it and continues until cancelled by
you or us with at least 30 days written notice. You agree to pay us
commissions, fees and costs we’ve earned prior to cancellation, including
commissions on money received in the future as part of a payment
arrangement we’ve made with debtors. Request to cancel or terminate Kinum
Collect accounts must be in writing. Accounts shall be cancelled or
terminated only upon written acknowledgment by Kinum. A fee of 25% of the
total amount of all assigned Accounts that are cancelled or terminated by
Client shall apply and shall be payable within fifteen (15) days of
termination. Kinum shall be able to offset amounts otherwise due to Client.
This paragraph does not apply to Wisconsin clients.
WE PROMISE TO:
1. Professionally collect the debt in accordance with the Fair Debt
Collection Practices Act and state laws, and to maintain the privacy and
confidentiality of debtor information entrusted to us.
2. Utilize interest to offset the costs of collection and as a negotiating
tool for debt settlement. If you add interest to delinquent accounts as
permitted by law and your contract with the debtor, we are entitled to a
commission on interest recovered at the rate listed on page 1. If you don’t
add interest, and we choose to add it, we may retain any interest
recovered. In either event, you grant us the discretion and authority to
waive interest as an incentive to induce payment of the debt.
3. Mail to you by the 15th of each month a statement and/or the money we
recovered the prior month. Although we instruct debtors in the Collect
phase to make payments to us, they often will make payments to you. We are
entitled to deduct from payments we have received, or charge you for
payments you have received, the commissions, interest, convenience fees and
returned check fees we have earned.
4. Send difficult Collect accounts to an attorney, who will make a written
demand and phone calls for payment. There are no additional fees for this
service, but you agree to pay a commission (at the legal rate listed on
page 1) on debts collected by the attorney as a result of the written
demand and phone calls. If those efforts are unsuccessful, the attorney
will review the case at no cost to you and recommend whether to take legal
action, and estimate the costs. You will be responsible for legal expenses
only if you instruct the attorney to take legal action.
5. Indemnify and hold you harmless from and against any claims,
liabilities, damages, and penalties resulting from our collection efforts
on your behalf unless you have given us inaccurate, misleading, or
out-of-date information, or have acted negligently.
YOU PROMISE TO:
1. Not assign debts that are beyond the statute of limitations or within 1
year of expiring. Please check the appropriate state where the consumer
2. Assign only accounts that are legally due and be able to provide Kinum,
upon request, with accurate substantiation of the debt, such as a copy of a
judgment against the consumer or a signed contract/application. If no
signed contract or application exists, a copy of an itemized statement
showing all transactions, payments or balance transfers must be provided.
No collection fees are to be added to accounts and if there is interest,
penalties or any other fees added to an account, at our request, you will
provide us with copies of the agreements that permit such charges to verify
said interest, penalties and/or fees are permitted under state and federal
law. Failure to provide substantiation of the debt within 10 days of
request from Kinum will give Kinum authority to forgive the debt and you
will no longer have the right to collect on the debt in the future. You
will indemnify and hold us harmless from, and against any claims, actions,
or penalties with respect to accounts you have given us that contain
inaccurate, incomplete, or misleading information.
3. NOT add any collection fees on accounts placed for collection. In rare
instances, only written permission from Kinum’s CEO or COO, may allow the
addition of collection fees. This approval by Kinum does not release you
from your obligation to ensure that the fees are legally allowable and in
accordance with all state and federal laws. You understand that if Kinum is
sued or needs to retain counsel from a threat of suit regarding the
addition of collection fees, you will pay all of Kinum’s expenses in
defending such action as well as pay any money to settle such action.
4. Immediately update changes in the accounts (through our web portal or by
email) including payments you have received, and send us all
account-related notices received from the debtor, his or her
representatives, agents, attorneys, courts or others.
5. Authorize us to settle any accounts at or above the Settle in Full
Authority percentage rate listed on page 1.
6. Excuse us from performing under this agreement due to any act or event
beyond our control (Force Majeure), until such act or event no longer
prevents us from performing.
7. Grant us authority (with respect to money recovered in the Collect
phase) to endorse negotiable instruments. You authorize us to earn and
retain all convenience fees, interest that we add and returned check fees.
The principal amount and the credited value of Returned Merchandise
received in payment of a debt will be at the commission rates listed on
Kinum can report debts to the credit bureaus on your behalf ( as mentioned
on page 1 of the agreement). By selecting YES for credit reporting, you are
requesting Kinum to report debts to the credit bureaus on your behalf. In
doing so, it is imperative that you have a complete understanding of what
is required in order to be compliant. The links below will give you more
information as provided from the Federal Trade Commission.
For your convenience, below are some highlights of what must be agreed to
before commencing with credit reporting on your accounts with Kinum.
- Post payments received in a timely manner
- Forward any disputes or bankruptcies immediately to Kinum
- Provide substantiation of all debts assigned at time of placement or as
- Always accurately report the balance and the status of the account
If you have any questions or are unsure about what your obligation is in
order to be compliant with the Fair Credit Reporting Act, please get
clarification before signing this agreement. Acceptance to our Service
Agreement confirms that I have complete understanding and will do
everything possible in order to stay compliant according to the guidelines
established in the Fair Credit Reporting Act and hold Kinum harmless from
any of your actions resulting in a violation of FCRA rules and regulations.
If legal action is necessary to enforce this Agreement, all costs,
reasonable attorney’s fees, and expenses incurred to remedy any breach will
be borne by the losing party. The laws of the State of Virginia, subject to
the exclusive venue and jurisdiction of the state of Virginia, or federal
courts located nearest to Virginia Beach, VA, shall apply to such claims.
Service Agreement Last Update Date: 10/04/2022