Terms and Conditions

Schedule of Charges - Commercial Accounts

Coastal Contingent Commission

Twenty-five percent (25%) of the first $3,000.00, or $100.00, whichever is greater, plus twenty percent (20%) of the balance collected.

For matters in excess of $50,000.00, the rate is negotiable, based on the merit of the individual matter. We also reserve the right to request an increase to our contingent commission. Under no conditions shall a higher rate be charged or earned without the prior written authorization of the client.

Coastal's contingent commissions are based on primary placements for which none of the following conditions are present:

No other third party communicated with the debtor.

The age of the oldest open invoice is not more than 18 months from the invoice date.

Each client and any of its divisions or subsidiaries warrants the sum placed for collection is due and owing.

Commission on Accounts Placed with an Attorney

Coastal commission shall be ten percent (10%) of all sums collected if the claim is collected through the efforts of an attorney. This applies, regardless of who chooses the attorney; our client or Coastal.

Return Merchandise

Merchandise accepted by the client as payment is considered a direct settlement. Coastal shall be entitled to its full commission based upon the fair market value of such merchandise.

Discovery Charge

A charge of ten percent (10%), or $250.00, whichever is less, will be earned and due Coastal when the following condition is present:

The debtor PROVES the total sum placed is not due and owing. There will be no discovery charge unless the debtor PROVES the money is not owed. A general denial by the debtor does not constitute proof.

The debtor proves the debt, or portion there-of, was paid prior to the placement date.

Aged Accounts or Out of Business Prior to Placement

Matters with an open invoice which is more than 18 months from invoice date, or business whose telephone is not in service and/or mail is returned, the contingent commission shall be thirty-three and one-third percent (33.3%), or $200.00, whichever is greater.

Withdrawn Accounts

Accounts that have been received and acknowledged which are withdrawn without the prior written consent of Coastal, shall be subject to a commission charge as set forth heretofore. Coastal shall be entitled to such commission charges when notice is received from client or when Coastal otherwise learns of such event.

General Conditions of Employment

Master Profile completed for each division

We will provide each client with the form. This form will give us the capability of handling your placements in accordance with your needs. It will help us identify the correct division or group name; whom to contact at that division or department. Also, it tells us to whom remittances and invoices are sent, and how remittances are to be sent. (i.e. individual checks, statements, EFT/EDI protocol) Your customer number scheme is reviewed. Considering our Free Demand service can be tailored to meet your needs; how will you set it up? How often, and by what means must reports be generated, and to whom, and how, should they be sent?.

Information client should include in each placement

Our Structured Review works best when we have the same information about a customer/debtor that you have. Therefore, the following information should be included with each placement:

For accounts under $500.00 we want a copy of the statement, name and telephone number of the individual(s) to be contacted. If known, why your customer has not paid their bill and any other data management believes will be beneficial.

For accounts greater than $500.00, we want a copy of the statement, name and telephone number of the individual(s) to be contacted. Also include copies of the credit application, credit report (do not get a new report, just include a past copy, if in your files), contracts, pertinent correspondence, and reason for non-payment. Include the history of the relationship with the customer and any other information you may deem necessary.

Acceptance of accounts

Coastal will exert its full and complete effort and expertise to collect each account through its Personal Collection Service. However, Coastal reserves the right to return to client any account which Coastal deems to be uncollectable or unwarranted, with no further obligation upon Coastal.

Acknowledgment of Placements

Coastal shall acknowledge to client in writing all claims placed for collection. The acknowledgment shall show client's account number, Coastal's file number, the name of the debtor and the sum placed for collection.

Individual Claim Status Reports

Coastal will issue an initial written report for each individual placement, within ten days from the date of acknowledgment. Subsequent reports will be as appropriate, but, no more than thirty days apart by written advice or telephone.

Collection Remittances

All checks, cash or similar payment advice, will be endorsed and deposited into our trust account, which is specifically separate from any and all other Coastal bank accounts. Coastal shall remit via individual checks all funds received from client's accounts, net of commissions, on the 10th or 20th of the next month following clearance of the funds deposited.

Free Demand Service

Coastal shall provide DEMAND FORMS or prepare DEMAND notice on Coastal's stationary, which shall be mailed either by the client or by Coastal, for payment of undisputed accounts. There shall be no commission due for any payment received by Coastal during the FREE DEMAND period, the number of days for which is not to exceed fifteen days from the date of DEMAND. Furthermore, there shall be no commission due for any payments received direct by client during FREE DEMAND period, provided and unless your office notifies Coastal, during the FREE DEMAND period, of such payments. No accounts will be accepted for FREE DEMAND SERVICE only. Once the free demand period expires the account is automatically placed into immediate collection, subject to all other terms and conditions of this agreement.

Payment of All Coastal Invoices Including Direct Payments and Costs Advanced

Client warrants invoices will be paid within three (3) days of receipt. In the event an invoice is not paid within 45 days, and no reason given to Coastal by client for its non-payment, Coastal shall have the right to offset the open invoice by deducting money held in escrow, owed to client.

Accounts which file bankruptcy after placement.

We generally file a Proof of Claim for our clients. However, we will follow your company's policy.