Ordinance No. 3,1121 0 3 2 C3 — 2
ORD = NANCE IlTO _ 3 1 1 2
AN O RD I NA N CE AUTHOR = Z I N G A ND D I R E C T= N G THE C I TY M A NA G E R
OF THE C I TY OF SliYTOWN TO EXECUTE A CONTRACT w I TH -
TOR S F I N AN C I A L, S E RV I C E S, r N C_ FOR C O L LE C T I O N O F LT T= L T TY
OF F I C E iV R= Z'E — OF F A C C OU N T S A U TH OR R I N G P AY M E N T 8 Y T HE
C I TY OF F F T Y P E RC E N T 5 O a OF S U C H WR I TE OF F AC C OU N T S
COLLECTED TTIlTDER SUCH AGREE VIENT AND PROV I D S NG FOR THE
EFFECT =VE DATE HEREOF _
E E I T O I?D A I NE D 1-3-Y' T H E C I T Y C O UNC I L F O TH E C= TY OF
B AY TOWN
Sectiara 1 = That the City Council :F c:> the City of Baytown ,
Texas hereby authorizes grid directs the City Maraagcr to exe—
cT-zte a contract with Creditors Financial Services , me _ , f or
collection of utility office write —off accounts, and authorizing
payment of fifty { 50 percerat of tho monies col lected by
Creditors Financial Services ]Era c _ , as compensation for such
c o 1 1 e c t i o ns s e r v i c e s_ A c o p y o f s a i d A g r e e m e n t i s a t t a c h e d
h e r e t o, m a r k e d E x h i b i t " A •, a n d m a d e p a r t h e r e o f f o r a l l i n t e n t s
a n d p u r p o s e s_
Section 2 That this ordiraE--Lracc shall tame effect from
arac3 after its passage _
I NT ROD U C ED , R E A D a n d P A S S E D b y t h e a f f i rm a t i v e v o t o o f
the City Couracil of the City of I3aytozvn tYais ^gth day of
Marc 12 1 1 9S 1 _
T O _ HUT TO , iSiayo r
ATTEST
EILEEN L- _ HALL , City Cleri--
R T1TT L� r T "TTL T
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"EXHIBIT A"
10326 -2b
M=L
FINA14CIAL SERVICES, INC.
P. p, BOX 35512
HOU5TC'Y, TEXAS 77035 n
COLLECTION AGREEMENT BET:EEN
CREDITORS FINANCIAL SERVICES, !NC-
D /B /A CREDITORS COLLECTION COMPANY
AND
The following is an agreement between Creditors Financial Services, inc-
d /b /a Creditors Collection Company, hereinafter called " Company" and clie�_
shown above, hereinafter called ,Client ".
1. RELATIONSHIP OF PARTIES: The ComponYent,aacnsdandn0-n. contractor
onsaCCOntrol
is solely responsible for the empl ym
and direction of its employees -
2. INDEMNIFICATIONS• The Company hereby indemnifies and holds Chen4
harmless from any and all ciaims�ld tiessof�Companysonfaccountstsolellyy
be asserted due to collection a will not assume respons -,
on information furnished by Client and Company
ibility for any Client errors or ommissions.
-- This collection service will consist
3. TYPES OF SERVICES: (A) '�'�. on behalf of the
of a letter Service mailed to deComp by the of initiate direct per -
Client. Under this arrangement ill r9syond with motivational backup if
sonal contact with debtor but will rasp
is not limited to, development
debtor. This includes, but
contacted by ualification. The Ca�tpany's
of loan application for evaluation and 4 able ion. The
Upon s
com-
fee will include a flat rate per account pay
letion of program or 18 months, whichever whichewillrbe,dueeuponereceipt
p on its forms of
be invoiced l0i of all monies cole for , Company
of invoice_ Client is.responsible for notifying ent acceptable to
any debtor who pays or makes arrangements for P Ym a ents and will
Client. Company will calculate arrangement stops rate. P g is understood
i�,cl„de in the amount to be invoiced at the i0•
T.A.D.S. is the first step, if chosen, of an integral step izL the whole
controlled by the Co:-tpany• tB) Direct
collection process and is fully e, or be optional in lieu
Collection - This collection service wi ar�ehasgbeen concluded, it used -
of T.A_D.S., or after the U.A•D.S• grog
Company fee will always be 50% on Direct Collections.
The following provisions apply to all Direct Collections handled by
Company on behalf of Client.
4.
ETHICS- Agency shall comply strictly with the Code of Ethics adopted
-
4. the Collectors Association, and wi'l1 conduct TiusonoClient�n
Y
activities in such a mannarconsumer not
loanffirm ,ualso oengaged pin conue =cial
Company is also a license
lending. to
5. REFERRAL OF ACCOUNTS: Referral of accounts ently tomG011ectaaccour.2s so4�on
of Client. Company shall undertake
10326 -2c
It t ,t"rQcal i a.co �.._. for six
�1•l: l�1'�'ll I -cl ['S t ~jl� l .l�.iil
+ - _ cannot.
� . L<_�]L..pil (- ,��„•rAnt5 {_') _A3 _ an c3Ct:OL'Tit. that 1S: (- ) - o"
associate agency. (3) legal actso�? has beer. fi].ec.: ey Co ~.pa::,r, tion
-
where an account is deemed within the process of collec bl. -Vrbal
or written commitment. ng
�* �'DGEME ^.TS: Company shall ackno•:,-ledge rece_p= of acca x -tT s; o; :i
6. ACKNO��L. -
exact amount assignea_ rer?3.'� to Clie r o'_ or atecut the
7. REMITTING COLLECTION: Company shall
20th of each month all collections effected on behalf of Client ;uri::g
the preceding month.
8. DIRECT PAYiIENTS: Client mill notify Company imjr ,.eciately of all direct
payments. Company will include commissions owing on direct payments
on collection statements. ny �. COMPROMISE SETTLEMENTS: om'Pa �on�accountsnwithoutrclient �l�e to
's
time accept compromise settlements
authorization.
: Company will furnish status reports on unpaid accounts,
10. STATUS REPORTS
only on Client's request, but reserve the right to Limit vide verbal
of
written reports to six month intervals. Company will provide verbal
reports at any time requested.
11. LEGAL ACTION: Company shall not initiate any
CJo�enofaree�s tote °aq
without prior written authority from Client.
vide Company with all original media and information necessary to file
an action.
12. COSTS: Client will shallcreimburseritselfsfordcostsreXpendeeefrom
necessary_ Company shall
first monies collected, on any account that legal action has been
taken on. No commission is payable on court costs recovered.
13. FORWARDED ACCOUNTS: After a debar has moved out Of the
totane,or asso
area served by Company, Company Y
ciate company located in debtor's area. Company will remain responsi-
ble to Client for all collection on f warded accounts.
14. BANKRUPTCIES: When a debtor petitions f or company will
notify Client and close the file.
Company will at it's own periodically
15. SPECIAL SERVICE: list-
company personnel on Client's premises to help with physical
add-
ing of accounts, if Client desires, and volume so warrants such itional help. will act as it's arrant in
16. AGENT FOR: Client acknowledges that Company
the collection of Client's delinquent acco funds and as agent will nds collected, pending
endorse and deposit into a TRUST ACCOUNT all fu this Agreement.
remittances in accordance with Paragraph (7) of
17_ DEBTOR ARRANGEMENTS: Ciintfullefromodebtor make
oncearrangements
account haswith,
been
accept less than payment
assigned, without checking with Company, as we may have additions
costs involved.
ACC THE CLIENT
ACCEPTED FOR THE COMPANY
EPTED FOR
CREDITORS FTNANCIAL SERVICES INC.
r
BATE_ r f X_41 DATE