FINANCIAL GUARDIAN, INC. (hereinafter referred to as "MFG") and the CREDITOR
(hereinafter referred to as "Client") agree and intend to be bound by the
following terms and conditions:
Client agrees that, once the claim has been assigned to MFG, no other
agency, person nor the client shall concurrently pursue this claim. Should payment be
made, MFG shall be entitled to collection fees as outlined in paragraph 6.
Client agrees that, as the agent for client, MFG is authorized to
accept payments and endorse for deposit checks or money orders received on accounts, the
net proceeds of which MFG shall remit to client in a timely fashion. MFG shall deposit all
such funds into a clients trust account.
Client agrees that, if MFG is entitled to fees as a result of
payments made directly to client, MFG may deduct those fees from subsequently received
payments on the same claim or on other claims.
Accounts withdrawn or settled directly by the client are nevertheless
subject to collection fees, as outlined in paragraph 6.
MFG shall be entitled to a service charge of no less than 50% of the
collection fee stated in paragraph 6, when a) returned merchandise accepted by the client
is considered direct settlement or b) client refers a claim to MFG, which is subsequently
demonstrated to have been paid by the debtor prior to the referral to MFG.
Commercial Collection Rates: Charges contingent upon collection are 25% on the
first $2,000 collected and 20% in excess of $2,000. All balances assigned under $300 are
50%. Second placements are all accounts previously handled by other agencies or attorneys.
The collection fee on these accounts is 50%. Legal action shall not be taken without
clients written authorization, once suit is filed, a 10% increase in fee will apply.
If suit is recommended, there may be additional expenses for court costs and attorney
retainer. Interest collected is retained by MFG as additional compensation. Additionally,
treble damage charges on non-sufficient fund checks assigned for collection shall be
shared with client at the prevailing commission rate.
Accounts assigned for collection may be listed on Experian credit
bureau at the sole discretion of MFG.