Terms and Fee Schedule

  1. Services: SDRG shall perform pre-suit debt collection services for Client, and Client shall not place account(s) subject to this Agreement with any other debt collection organization during the duration of this Agreement. SDRG is not a law firm and the attorney ethics rules do not cover SDRG’s work unless SDRG refers the debt for suit. SDRG shall perform collection of Client’s account(s) in consultation with our affiliate law firm, Schiff & Associates as necessary. Client understands that Client does not have to use Schiff & Associates for collection litigation, but consents to do so.  Client will not exercise control over the methods and procedures used by SDRG and Schiff & Associates.
  1. Fees: SDRG shall provide full service debt collection for a percentage of the recovered gross amounts as set forth in the fee schedule, Exhibit A. Once Client refers account(s) to SDRG for collection, Client shall require the debtor to make any payments on the account to SDRG, and Client shall not accept such payments directly from the debtor. Subject to the fee terms set forth in Exhibit A, this agreement shall cover all accounts Client maintains with SDRG.  If legal services are required, fees shall be allocated by SDRG and/or Schiff & Associates as required by the ethics rules that govern attorneys. Should SDRG, in consultation with Schiff & Associates deem that a claim involves a counter claim, complex litigation and/or complex issues, SDRG shall advise the Client and upon written authorization then refer the matter to bill for services at a rate of $250.00 per hour for attorney time. 
  1. Court Costs: Court Cost and expenses shall be advanced when suit is required.  The Client shall reimburse all Court Cost and expenses upon receipt of the billing statement.  Should funds be recovered prior to the Client’s reimbursement of court cost, SDRG and/or Schiff & Associates are authorized to deduct court cost from the aggregate amounts recovered.
  1. Suit and Settlement Authority: The Client hereby grants SDRG authority to refer the matter to Schiff & Associates for suit, to qualify claims for suit and to undertake all lawful activity required in the recovery of funds on behalf of the Client. SDRG and/or Schiff & Associates shall obtain prior authorization from the Client before accepting any settlement offers from any debtor.  
  1. Disbursement of Funds: SDRG and/or its affiliate Schiff & Associates shall disburse funds recovered on behalf of the Client, pre-suit or after suit to the Client monthly. If legal work is performed by Schiff & Associates, Court Cost expended shall be reimbursed prior to the calculation of the contingent fee.  Client shall be provided with a disbursement statement. Client shall be provided with a closing statement.  SDRG and/or Schiff & Associates shall provide status/inventory reports as required by the Client.
  1. Client Payments:  The Client shall pay all billing statements for court cost, attorney fees, expenses and/or direct payments from debtors upon receipt of the billing statement.  The Client agrees to pay interest at the rate of 1.5% monthly on all outstanding amounts due if the billing statement is not paid in full within thirty (30) days from the date of the billing statement.  SDRG and/or its affiliate Schiff & Associates reserves the right to deduct attorney fees, court cost and expenses from the aggregate amount recovered.  SDRG and/or its affiliate Schiff & Associates is given a lien on any claim or cause of action on any sum recovered by way of settlement or otherwise for all attorney fees, court cost and expenses that are due and owing.  SDRG reserves the right to discontinue work on any pending matters or to terminate our agency/client relationship at any time that any billing statement remains due or unpaid or that a requested retainer deposit against any foreseeable charges is not received.
  1. Bankruptcy Services: Client agrees not to refer accounts which are included in a bankruptcy or are owed by a debtor which/whom has filed a bankruptcy petition.  Should a debtor file a Chapter 13 Bankruptcy, SDRG and/or its affiliate Schiff & Associates will file a Proof of Claim only when the dividend to be paid through the bankruptcy is $100.00 or more.  Should extended bankruptcy services be needed and if SDRG and/or its affiliate Schiff & Associates elects to provide extended bankruptcy services due to the filing of a Chapter 13 or Chapter 7 bankruptcy, SDRG and/or its affiliate Schiff & Associates shall advise the Client and upon authorization then bill for services under a flat rate schedule or at a rate of $250.00 per hour for attorney time.
  1. Compliance: SDRG and/or its affiliate Schiff & Associates shall comply with all Federal, State and Local Laws, and/or regulations when pursuing the collection of accounts, including, but not limited to complying with the Fair Debt Collection Practices Act.  Client agrees to only refer accounts which are legal and enforceable.  The Client represents and warrants that it will provide correct and true information as to the balance due on all claims.  Failure of the Client to provide accurate amounts due could operate as a legal bar to the recovery of claims.  SDRG and/or its affiliate Schiff & Associates shall not be responsible for inaccurate information provided by the Client.
  1. Validation of Accounts: SDRG and/or its affiliate Schiff & Associates expressly rely on Client to only refer accounts which are legal and enforceable.  Upon request of SDRG and/or its affiliate Schiff & Associates, Client shall provide written validation of accounts, including (a) the identity of the debtor, (b) the amount(s) due, and (c) documentation to support the account within fourteen (14) days of request by SDRG and/or its affiliate Schiff & Associates. 
  1. Debtors Represented by Counsel:  Client agrees to promptly inform SDRG of the name and address of any attorney or law firm representing a debtor on any account placed.  
  1. Interest, Late Fees, Collection Fees, and Other Charges: If any account is subject to Interest, Late Fees, Collection Fees, and/or Other Charges, Client agrees to inform SDRG and/or its affiliate Schiff & Associates of such amounts and calculations at the time an account is referred for collection.  Client represents to SDRG that the written contract between Client and the consumer(s) provides for interest at a rate of __________% per annum on the outstanding principle of all placed accounts, as shown in exhibit A hereto. Client agrees to inform, at time of placement, SDRG in writing if a different contract is used for any consumer(s).Client agrees to abide by all state and federal laws concerning such amounts and calculations.  SDRG and/or its affiliate Schiff & Associates expressly rely on Client to only refer amounts which are legal and enforceable.  Failure to inform SDRG and/or its affiliate Schiff & Associates of such amounts and calculations at the time an account is referred for collection could result in SDRG and/or its affiliate Schiff & Associates foregoing collection of such amounts.

Contact our office for Exhibit A fees. Fees are negotiable upon consecutive monthly placements.