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." Signer agrees that he/she is an authorized representative of Client that has the necessary authority to engage into a contractual relationship with Kinum.
Kinum has two main phases: Connect and Collect
CONNECT: In Connect, our system automatically contacts your debtors up to 5 times in your name, and/or 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. When we contact your debtors in your name, Kinum acts as an extension of your company in servicing and billing your debtors and performs 'early-out' services through which it resolves balances on unpaid accounts prior to the time that the account is deemed delinquent.
COLLECT: 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. Kinum On-boarding directs client users to refer Collect consumers to agency and Connect consumers to the client. Agency is entitled to full commission on consumers who are improperly referred to agency instead of client.
WE PROMISE TO:
1. Professionally collect the debt in accordance with the Fair Debt Collection Practices Act, HIPAA Privacy Rule, 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 $15.75/account) and purchase another 150 accounts ninety days later, we will combine the two orders and charge you the 250 account volume price of $14.50 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 20th 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 a law firm on your behalf, 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 law firm because of the written demand and phone calls. If those efforts are unsuccessful, the law firm’s attorney will review the case at no cost to you and recommend whether to take legal action and estimate the costs. You will be only responsible for advanced legal costs if you authorize the attorney to file suit.
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 resides.
2. Represent and warrant that any amounts you request we collect, including any interest, fees, or other charges, are expressly provided by the contract between you and your customer or otherwise expressly authorized by applicable law, and that none of the accounts have been paid, settled, or otherwise have any defense or right of set-off. You can 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.) 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. If the assigned debts are for medical goods and/or services, you represent and warrant that any amount you request we collect reflects the ordinary and reasonable charges for goods and/or services actually provided, and that none of those charges violate the "No Surprises Act" or otherwise exceed the amount allowed under any applicable law or regulation or any contractual arrangement with any insurer or insurance network. You also represent and warrant that the responsible parties have been properly screened for any applicable financial assistance and that any necessary procedures relating to the provider’s financial assistance policies, including all necessary notices to the patient, have been completed.
4. 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 Kinum's expenses in defending such action as well as pay any money to settle such action. In the event of a judicial claim, or threat thereof, filed against Kinum for adding a collection fee to the debt account, client will provide an experienced attorney to represent Kinum and assume the costs related to the judicial process. Client will notify Kinum of any changes to the Compensation resulting from a state, federal, or other applicable regulation.
5. 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, canceled them or requested an Authorized Transfer on page 1 of this agreement.
6. 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.
7. Authorize us to settle any accounts at or above the "Settle in Full Authority" percentage rate listed on page 1.
8. 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.
9. 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 page 1.
10. Provide upload data in a format that meets CFPB Regulation F requirements. If you cannot provide upload data in a format that meets CFPB Regulation F requirements, you authorize one of Kinum’s letter vendors to send a last statement on your behalf. You authorize the letter vendor to use your company name and address in the return address position of the outgoing envelope.
ENFORCEMENT.
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 Commonwealth 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. The below signer agrees that he/she is an authorized representative of Client that has the necessary authority to engage in a relationship with Kinum.
OUR GUARANTEE:
We promise to collect at least 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.
CREDIT REPORTING:
Kinum may report debts to the credit bureaus on your behalf (your choice is mentioned on page 1 of the agreement). By selecting YES for credit reporting, you are requesting Kinum to report Step 3 (Collect) 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.
https://www.ftc.gov/system/files/documents/statutes/fair-credit-reporting-act/545a_fair-credit-reporting-act-0918.pdf
For your convenience, below are some highlights of what must be agreed to before commencing with credit reporting on your accounts with Kinum.
(1) Post payments received in a timely manner,
(2) Forward any disputes or bankruptcies immediately to Kinum,
(3) Provide substantiation of all debts assigned at either time of placement or as requested, and
(4) Always accurately report the balance and the status of the account. You understand and agree to abide by all rules and regulations as set forth by the FCRA and agree to indemnify and hold Kinum harmless from any of your actions resulting in a violation of FCRA rules and regulations.
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 you 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.
TERM. 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 canceled or terminated only upon written acknowledgment by Kinum. A fee of 25% of the total amount of all assigned Accounts that are canceled 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. Renewal of Connect Accounts, changes in pricing, commissions or other terms will be accepted via email and must be agreed upon by both parties. Unless otherwise stipulated, all other terms will remain as determined by this agreement, in perpetuity. Termination fee does not apply to Wisconsin clients.
Kinum Order Version 4.1 - Revised 11/1/2024 |