Collection Agreement
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MICHAEL A. MONTOYA, P .A.
256 South Santa Fe
P.O. Box 1220
Salina, Kansas 67402-1220
Telephone (785) 827-5505
Fax (785) 452-9726
November 9, 2005
MEMO
TO:
Penny Day, Deputy City Clerk
FROM:
Renee, Office Adm.
RE:
City of Salina Collections
Just a recap of our phone conversation:
Collection Steps:
1) You would send us account information and all the personal information you have on the
debtor.
2) We send out 2 letters, usually get responses to set up payment arrangements, in which I
will deposit the payments into our Trust Account. In the third week ofthe following month you will
receive a billing, corresponding reports and a check for the remainder of collected monies minus any
fees and cost.
3) Ifwe receive no word from the debtor, then we proceed legally which then there will be
filing fees:
$31.00 for $0-$499.00
$51.00 for $500.00 to $4,999.00
$81.00 for $5,000.00 and over
Other possible cost usually run around $5.00 a shot for: certified mailing, sheriffs service fees, credit
reporting or research fees for new addresses etc.
4) Fees, Cost, Debtor account information will be detailed on a report. All cost are applied
to the debtor's account so therefore if we get judgement and start collecting then the debtor will be
paying back the cost to you.
5) Our commission rate runs a straight 25% across, before and after judgement. Of course
we take no commission on cost.
6) We have a sophisticated system and can produce reports to keep you up dated on where
the accounts are at in the collection process and detailed financial information on said accounts.
If you have any questions please call. We are flexible in how you want to handle the
accounts/debtors. Thank you for your business.
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FEE AGREEMENT
This Agreement, by and between the City of Salina, Kansas, hereinafter c~led "Client," and Michael
A. Montoya, P.A., hereinafter called "Attorney," is made and entered into this ~day of~2005.
Client agrees to employ Attorney to represent Client in Client's collection of past due accounts.
Following further review and investigation, if Attorney determines that no case can be made on Client's
behalf, or that the possibility of winning Client's case is very remote, or it is not economically feasible to pursue
Client's case because of the cost of litigation would be great and the amount of probable recovery would be
small, or in the event a conflict develops, Attorney shall notify Client and shall have the right to proceed with
Client's case and/or to withdraw as Attorney for Client.
Attorney is to make no settlement without Client's knowledge and consent. Attorney is to receive no fee
if nothing is recovered.
Attorney is to receive a fee of 25% of whatever amounts are recovered excluding the collection of
advanced costs and expenses.
It is understood that any actual expenses and costs incurred by Attorney on behalf of Client in the
preparation and handling of Client's case will be paid by Client. All such expenses are the obligation of Client
regardless ofthe outcome oflitigation. Said expenses and costs, if collected, shall be returned to Client prior to
any other sums being distributed.
Pursuant to Kansas Supreme Court Rules, Client has the right to request a court having appropriate
jurisdiction to review the reasonableness of any fee charged.
Dated this 7d\ day of ~, 2005.
City of Salina, Kansas
By
MICHAEL A. MONTOYA, P.A.
By .c;
Michael A. Montoya