# Collection Agency Agreement
**This Collection Agency Agreement (the “Agreement”) is made and entered into as of [Date] by and between:**
**Client:**
Name: [Client's Full Name]
Address: [Client's Address]
City, State, Zip: [Client's City, State, Zip]
Email: [Client's Email Address]
Phone: [Client's Phone Number]
**and**
**Collection Agency:**
Name: [Agency's Full Name]
Address: [Agency's Address]
City, State, Zip: [Agency's City, State, Zip]
Email: [Agency's Email Address]
Phone: [Agency's Phone Number]
**WHEREAS**, the Client wishes to appoint the Collection Agency to collect certain debts on its behalf; and
**WHEREAS**, the Collection Agency agrees to undertake such collection activities under the terms and conditions set forth in this Agreement.
**NOW, THEREFORE**, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:
## 1. *Engagement*
The Client hereby appoints the Collection Agency as its agent to collect on debts (the “Accounts”) in accordance with the terms of this Agreement.
## 2. *Scope of Services*
The Collection Agency shall perform the following services:
- Review and analyze Accounts submitted by the Client.
- Contact debtors for payment of the Accounts.
- Negotiate payment plans or settlements as authorized by the Client.
- Provide regular updates on the status of Accounts.
## 3. *Compensation*
The Collection Agency shall be compensated as follows:
- The Agency shall receive a commission of [Percentage]% of the amount collected from the Accounts.
- Payment shall be due to the Collection Agency within [Number] days after amounts are collected.
## 4. *Term and Termination*
- This Agreement shall commence on the date first written above and continue until terminated by either party upon [Number] days’ written notice.
- Termination shall not affect the rights and obligations of the parties for any Accounts collected prior to the termination date.
## 5. *Confidentiality*
The Collection Agency agrees to maintain the confidentiality of any and all information provided by the Client during the term of this Agreement and thereafter. This includes, but is not limited to, customer data, financial information, and business practices.
## 6. *Compliance with Laws*
The Collection Agency shall comply with all federal, state, and local laws and regulations governing collection practices, including the Fair Debt Collection Practices Act.
## 7. *Indemnification*
The Collection Agency agrees to indemnify and hold the Client harmless from any and all claims, damages, or liabilities arising out of the Collection Agency’s actions in the performance of this Agreement.
## 8. *Governing Law*
This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
## 9. *Entire Agreement*
This Agreement constitutes the entire agreement between the parties regarding its subject matter and may not be amended except in writing signed by both parties.
## 10. *Severability*
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
**IN WITNESS WHEREOF**, the parties have executed this Collection Agency Agreement as of the date first above written.
**Client:**
_____________________________
**[Client's Full Name]**
Date: ______________
**Collection Agency:**
_____________________________
**[Agency's Full Name]**
Date: ______________
---
*This template is for informational purposes only and may not cover all specific legal requirements applicable in your jurisdiction. It is recommended to seek legal advice before executing any contracts.*