|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."
Kinum has two main phases: Connect and Collect
: In Connect, our system automatically contacts your debtors up to 5 times
in your name, and then up to 5 times in our name. Debtors are instructed to
make payment to you, and you will notify us when you receive payment. You
may stop or cancel the collection process on an account at any time during
the Connect phase.
If the debtor has not responded to the Connect reminders or demands, or a
letter is returned because the debtor has moved, you can assign and
delegate the collection duties to us. We will notify you when we are about
to transfer an account from Connect to Collect and give you the opportunity
to pause or cancel it. If an account is transferred, 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 collection efforts.
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. Combine orders to ensure that you pay the lowest rate. Orders made
within 120 days of your original order are added to that order to qualify
for the best volume pricing. For example, if you purchase 100 accounts (at
$14.50/account) and purchase another 150 accounts ninety days later, we
will combine the two orders and charge you the 250 account volume price of
$13.50 on the second 150 accounts purchased.
3. 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 do
not 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.
4. 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.
5. 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 because 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.
6. 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 (example: A signed
contract/application and/or an itemized statement showing all transactions,
payments or balance transfers.) If interest, penalties or any other charges
are added to an account, it is your responsibility to ensure such interest,
penalties or other charges are permitted under state and federal law and
provide us with copies of the agreements that permit such charges. 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. Automatically assign accounts to us for collection that have completed
the Connect phase or are returned due to an incorrect address unless you
have paused, cancelled them or requested an Authorized Transfer on page 1
of this agreement.
5. Immediately update changes in the accounts (through our web portal or by
email) including payments or bankruptcies you have received, and send us
all account related notices received from the debtor, his or her
representatives, agents, attorneys, courts or others.
6. Authorize us to settle any accounts at or above the Settle in Full
Authority percentage rate listed on page 1.
7. 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.
8. 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
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 part. 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.
We promise to minimally collect 2 times your purchase price if all accounts
purchased under this Agreement are entered and processed through our
Connect phase as instructed by Kinum and our representative, or we will
refund the entire purchase price or the difference, if any, between what
was collected in Connect and twice what was paid to use for the Connect
service, whichever is less.
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.
This Agreement begins the day we sign it and continues until canceled 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.
Service Agreement Last Update Date: 10/04/2022