The Debt Masters Agreement

The Undersigned CLIENT hereby agrees that the account assigned on this assignment form and any future collection assignments assigned to the THE DEBT MASTERS hereinafter referred to as “TDM” are subject to the following terms and provisions.

  1. For commercial accounts the agreed “regular” commission rate on accounts in excess of $500.00 assigned within six months of the invoice is 25% of the monies collected on CLIENT’S behalf; otherwise the rate is 50%.  If the account is out of the country, bad checks, under $500.00, a consumer, a second (or subsequent) placement, out of business, or if a lawsuit is filed on your behalf, the rate is 50%.  If merchandise returns are authorized by CLIENT in full or in partial settlement of any assigned account, CLIENT will pay to TDM one-half (1/2) of the applicable rate of collection fees, based upon the invoiced value of such merchandise.
  2. If CLIENT elects to file suit after initial collection efforts have been exhausted, CLIENT will advance to TDM, in addition to the required court filling fees and other associated cost, if any, a suit fee equal to ten (10%) percent of the principal balance to be used for a non-contingent and non-refundable suit fee (cross complaints not included).  Any and all legal work will be performed by licensed Attorneys all of whom are active members of the State Bar of California and who are entitled to practice law in such state.  The same holds true for all of our attorneys across the country.
  3. A 10% collection fee will be charged by TDM on all accounts where proof of a full or substantial payment to client prior to assignment is substantiated.
  4. If applicable, all funds collected by TDM will be deposited in a non interest bearing account and remitted to CLIENT by the end of the month following collection, less fees earned by TDM or cost incurred which were agreed to be repaid by CLIENT.
  5. CLIENT agrees to pay TDM on all payments received directly from debtors on assigned accounts. TDM may settle client account and or bring suit in proper jurisdiction on behalf of undersigned CLIENT.  Client authorizes TDM to endorse and execute any and all written settlement agreements to any and all settlement agreements entered into by TDM on behalf of client pertaining to any and all of the accounts assigned to TDM by client.  The funds remitted to CLIENT shall be calculated as follows: total collections minus the sum of all fees earned by TDM pursuant to paragraphs 1, 2, and 3 above
  6. CLIENT authorizes TDM to receive and endorse in its name, all checks payable or endorsed to CLIENT which comes into possession of TDM by virtue of its acting as the collection agent, and to remit the proceeds to CLIENT less any fee due to TDM, whether such fees relate to the account for which the funds were collected.  TDM may use any funds collected to offset any open fees, court cost and suit fees due to TDM on any account assigned to TDM for collection. 
  7. CLIENT may withdraw or cancel any account assigned to TDM, further provided that TDM has not itself or through its attorneys, conducted any collection activity and/or contact with the debtor for at least six (6) months prior thereto.  If any activity has occurred within the immediately preceding six month period and there is interference from CLIENT or cancellation of claim, TDM is entitled to its percentage of the account as set forth in paragraph #1, as though TDM collected the full amount of the account.

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