HomeMy WebLinkAboutResolution No. R18-87BE IT RESOLVED by the City Council of the City of Laurel, Montana:
Section 1: Approval. The attached agreements between the City of Laurel and
Centron Services, Inc. d/b/a Credit Systems are accepted and approved. A copy of each
agreement is attached hereto for convenience.
Section 2: Execution. The Mayor and City Clerk/Treasurer of the City of
Laurel are hereby given authority to accept and execute said agreements on behalf of the
City.
Section 3: Effective date. The effective date for the attached agreements are
upon approval by the City Council.
Introduced at a regular meeting of the City Council on December 18, 2018, by
Council Member Herr.
PASSED and APPROVED by the City Council of the City of Laurel this 181h day
of December 2018.
APPROVED by the Mayor this 18"' day of December 2018.
`ATa/
Beftz�JyL te, Clerk -Treasurer
a's
Approved to C; j
Sam S. Painter, Civil' City Attorney
CITY OF LAUREL
Thomas C. Nelson, Mayor
R18-87 Centron Services, Inc. d/b/a Credit Systems Agreements
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This Agreement made and entered into by and between The City of Laurel, P.O. Box 10., Laurel, MT
59044 hereinafter designated as "the Client", and Centron Services, Inc., d/b/a Credit Systems, P.O. Box 875,
Helena, MT 59624 hereinafter designated as "the Agency". This contract shall commence on the date
signed.
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THAT WHEREAS, the Client has, and from time to time will have, ambulance accounts and claims due
to the Client which they desire to refer to the Agency for collection services;
WHEREAS, after the Agency has exhausted efforts at general collection services and the account
balances along with statutory interest has not been fully and completely collected by the Agency, the
Client may choose to sell and assign debts to the Agency;
NOW THEREFORE, in consideration for the premises and the mutual promises and agreements
hereinafter stated, the parties hereto do mutually covenant and agree as follows:
st �r- i • s � � �r:
1. In the event the Agency performs its general collection services and the account balances, along with
statutory interest, has not been fully and completely collected by the Agency, the Client may choose to sell and
assign debts to the Agency.
2. After the Client sells and assigns the debt to the Agency, for value received, according to a separate
Assignment for each account, the Agency will have full right and title to that assigned debt.
3. After the Client sells and assigns the debt to the Agency, for value received, the Agency will have any
and all rights the Client had to collect and recover the debt from any and all individuals, corporations, or any
other entity that is liable for payment of the debt. As a consequence and result ofthis Assignment, Agency will
stand in the shoes of the Client (as the underlying creditor), with respect to recovery and collection of the debt on
the account. For instance, if the Client had the right to recover the debt against both a husband and a wife prior
to the assignment, the Agency will enjoy the same right to recover the debt from both husband and wife
subsequent to the assignment.
4. After the Client assigns the debt to the Agency, the Agency will have all rights allowed it under the laws
of the State of Montana, including but not limited to the right to charge the consumer interest at the statutory
rate, attorney's fees as allowed, and costs of collection as allowed under statute and according to contracts.
5. In the event the Agency initiates legal action to recover the obligation, and a claim or counterclaim is
filed against the Client which is specifically related to acts of the Client, (e.g. malpractice claims), the Client
agrees to hold the Agency harmless with respect to any and all damages and injuries it might suffer as a result.
6. The Agency will be the party named as the "plaintiff" in any legal action that the Agency as owner ofthe
debt may decide to pursue. The Agency agrees that no suit or action will be filed in the name of the Client.
Assignment Contract
7. In the event that Agency determines it is in its best interest to pursue legal action, the Client agrees to
provide witnesses and documents needed to prove the Agency's case in court.
8. That agency, at all times, shall maintain a membership in a national Association such as the Associated
Credit Bureaus ofAmerica, and/or the American Collector's Association, and thus protect the Client under the
binding agreement as provided by membership in such national associations on forwarded accounts. That agency
agrees to cant' general liability and professional error and omission insurance and will provide the Client with a
certificate of insurance if requested to do so by the Client.
9. It is expressly understood and agreed that the agency is, and shall at tunes be, deemed to have the status
of an independent contractor and the agency agrees to indemnify and save the Client harmless of and from any
and all claims, actions or causes of action out of any acts of the Agency in collecting or endeavoring to settle
any accounts of the Client. The Client agrees to indemnify and save the Agency harmless of and from any and
all claims, actions, or causes of action out of any acts of the Client in providing the services underlying the
accounts referred, and from any and all claims, actions, or causes of action against the Client for mistake or
error by the Client in placing the account for collection with the Agency.
10. The Client grants and conveys to the agency the right of endorsement in clearing drafts, checks and notes
on accounts for the Client.
11. The Agency agrees to pay the Client 65% of the net principal recovery by the Agency, for all accounts
assigned by Provider to the Agency.
It is understood and agreed that all agreements herein are subject to all applicable laws now or
hereafter in effect into the lawful regulations, rulings and orders of regulatory commissions or agencies
having jurisdiction. If any provisions of this agreement are in contravention of the laws or regulations of
the United States or state of Montana, such provisions shall be superseded by the appropriate provision of
such laws or regulations, so long as same is in full force and effect.
This agreement constitutes the entire agreement and understanding between the parties
regarding assignment of accounts. Representations, inducements, promises or a grievance otherwise
made between the parties not embodied herein shall be of no force and effect.
IN WITNESS HEREOF, the parties have executed this Agreement as of the date and year signed below.
Centron S rvic In , d/b/a
Credit See
Title Date
2
Assignment Contract
City of Laurel
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Mayor Date
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This Agreement made and entered into by and between the City of Laurel, P.O. Box 10, Laurel,
MT 59044, hereinafter designated as "the Client", and Centron Services, Inc., d/b/a Credit Systems,
P.O. Box 875, Helena, MT 59624, hereinafter designated as "the Agency". This contract shall
commence on the date signed.
WITNESSETH
THAT WHEREAS, the Client has, and from time to time will have, ambulance accounts and
claims due to the Client which they desire to refer to the Agency for collection services;
NOW THEREFORE, in consideration for the premises and the mutual promises and agreements
hereinafter stated, the parties hereto do mutually covenant and agree as follows:
COLLECTION SERVICE AGREEMENT
1) The Client agrees to refer to the Agency accounts that they deem appropriate for collection
services by the Agency.
2) The Agency agrees to proceed diligently and expeditiously to collect all accounts referred by
the Client to the Agency. The Agency shall at no time follow any method, routine or procedure, which
will in any way, be objectionable to the Client or in violation of the Fair Debt Collection Practices Act.
3) The Agency agrees to record all efforts made on each account. The Agency also agrees to allow
the Client to examine said records during regular business hours.
4) The Agency will have all rights allowed to it under the laws of the State of Montana, including
but not limited to the right to charge the consumer interest at the statutory rate, and costs of collection
as allowed under statute and according to contracts signed by the consumers.
5) The Client agrees to pay the Agency according to the following commission, for all accounts of
which the Agency is providing collection services:
25% contingency fee on all accounts (except legal and forwarded accounts).
35% contingency fee on all legal accounts
35% contingency fee on all accounts forwarded to another agency.
6) The Agency agrees to report all of the Client's collection accounts to a Credit Reporting Agency
under their reporting parameters as collection items under the Client's name, and to comply with the
Fair Credit Reporting Act.
7) Accounts or claims referred to the Agency by the Client will be acknowledged in writing by the
Agency.
Collection Contract
8) Settlement of accounts by the Agency, in amounts less than the full amount owing to the Client,
will be made only upon approval of the Client.
9) The Agency agrees to furnish the Client a Monthly Statement with their check. This Monthly
Statement will show payments made during the last period on which a commission is charged. The
account number and remaining balance will also be shown. The Agency will also provide a client
history report, when requested, which shows the activity and status of all the accounts listed.
10) The agreement shall be effective for a term of twenty-four (24) months commencing from the
date of this contract and shall continue in full force and effect for a twenty-four (24) month period
thereafter. This Agreement will be deemed to automatically be renewed on a year-to-year basis for
successive terms of twelve (12) months from and after the expiration of the initial term hereof unless
sooner terminated by reason of termination in the manner as hereinafter provided. At any time during
the collection services agreement, this contract for services may be terminated by either party hereto,
upon written notice be given to the other party at least sixty (60) days prior to the date such termination
is to become effective.
11) The Agency will return accounts to the Client that were listed in error or that the cancellation is
in the best interest of the Client's public relations. When an account has been cancelled and returned
from the Agency, the account cannot be re -listed or collected on without the Client's approval.
12) That Agency, at all times, shall maintain a membership in a national Association such as the
Associated Credit Bureaus of America, and/or the American Collector's Association, and thus protect
the Client under the binding agreement as provided by membership in such national associations on
forwarded accounts. That agency agrees to carry general liability and professional error and omission
insurance and will provide the Client with a certificate of insurance if requested to do so by the Client.
1 )) It is expressly understood and agreed that the agency is, and shall at times be, deemed to have the status
of an independent contractor and the agency agrees to indemnify and save the Client harmless of and from any
and all claims, actions or causes of action out of any acts of the Agency in collecting or endeavoring to settle
any accounts of the Client. The Client agrees to indemnify and save the Agency harmless of and from any and
all claims, actions, or causes of action out of any acts of the Client in providing the services underlying the
accounts referred, and from any and all claims, actions, or causes of action against the Client for mistake or
error by the Client in placing the account for collection with the Agency.
14) The Client grants and conveys to the agency the right of endorsement in clearing drafts, checks
and notes on accounts for the Client.
It is understood and agreed that all agreements herein are subject to all applicable laws
now or hereafter in effect into the lawful regulations, rulings and orders of regulatory
commissions or agencies having ,jurisdiction. If any provisions of this agreement are in
contravention of the laws or regulations of the United States or State of Montana, such provisions
shall be superseded by the appropriate provision of such laws or regulations, so long as same is in
full force and effect.
Collection Contract 2
This agreement constitutes the entire agreement and understanding between the parties
regarding collection services. Representations, inducements, promises or a grievance otherwise
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made between the parties not embodied herein shall be of no force and effect.
IN WITNESS HEREOF, the parties have executed this Agreement as of the date and year signed
below.
Centron Services, d/b/a
Ins
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By
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Title Date
Collection Contract
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BUSINESS ASSOCIATE AGREEMENT
This Business Associate Agreement is by and between Centron Services, Inc. d/b/a Credit Systems ("Business Associate") and The
City of Laurel and shall be effective as of the dates specified below.
Organization and Business Associate mutually agree to comply with the requirements of the implementing regulations at 45 Code
of Federal Regulations ("C.F.R ") Parts 160-64 for the Administrative Simplification provisions of Title 1I, Subtitle F of the Health
Insurance Portability and Accountability Act of 1996 ("HIPAA").
Privacy of Protected Health Information.
a) Permitted Uses and Disclosures. Business Associate is permitted to use and disclose Protected Health
Information that it creates of receives on Organization's behalf or receives from Organization (or another business
associate of Organization) and to request Protected Health Information on Organization's behalf (collectively,
"Organization's Protected Health Information") only:
i) Functions and Activities on Organization's Behalf. Collect bad debt for ambulance service
ii) Business Associate's Operations. With regard to its use and/or disclosure of Protected Health
Information, the Business Associate hereby agrees to do the following:
A) Use and/or disclosure of the Protected Health Information only as permitted or required by
law.
B) Business Associate obtains reasonable assurance from any person or entity to which
Business Associate will disclose Organization's Protected Health Information that the person or
entity will:
I) Hold Organization's Protected Health Information in confidence and use or
further disclose Organization's Protected Health Information only for the purpose for
which Business Associate disclosed Organization's Protected Health Information to the
person or entity or as Required by Law; and
2) Promptly notify Business Associate (who will in turn notify Organization in
accordance with Section 4(a)) of any instance of which the person or entity becomes aware
in which the confidentiality of Organization's Protected Health Information was breached
within 15 calendar days of the Business Associate's discovery of the unauthorized use
and/or disclosure.
3) Establish procedures for mitigating, to the greatest extent possible, any adverse
effects from any improper use and/or disclosure of Protected Health Information.
b) Minimum Necessary. Business Associate will, in its performance of the functions, activities, services, and
operations specified in Section 1(a) above, make reasonable efforts to use, to disclose, and to request only the minimum
amount of Organization's Protected Health Information reasonably necessary to accomplish the intended purpose of the
use, disclosure or request, except that Business Associate will not be obligated to comply with this minimum necessary
limitation with respect to:
i) Disclosure to or request by a health care provider for Treatment;
ii) Use for or disclosure to an individual who is the subject of Organization's Protected Health
Information, or that individual's personal representative;
iii) Use or disclosure made pursuant to an authorization compliant with 45 C.F.R. § 164.508 that is signed
by an individual who is the subject of Organization's Protected Health Information to be used or disclosed, or
by that individual's personal representative;
iv) Disclosure to the United States Department of Health and Human Services ("DHHS") in accordance
with Section 5(a) of this Agreement;
V) Use or disclosure that is Required by Law; or
vi) Any other use or disclosure that is excepted from the minimum necessary limitation as specified in
45 C.F.R. § 164.502(b)(2).
C) Prohibition on Unauthorized Use or Disclosure. Business Associate will neither use nor disclose
Organization's Protected Health Information, except as permitted or required by this Agreement or in writing by
2018 Centron Services, Inc
Organization or as Required by Law. This Agreement does not authorize Business Associate to use or disclose
Organization's Protected Health Information in a manner that will violate 45 C.F.R. Part 164, Subpart E "Privacy of
Individually Identifiable Health Information" (the "Privacy Rule") if done by Organization, except as set forth in Section
1(a)(i i).
d) Information Safeguards.
i) Privacy of Organization's Protected Health Information. Business Associate will comply with
the Privacy rule to meet the obligation to protect the privacy of Organization's Protected Health Information.
Business Associate will develop, implement, maintain, and use appropriate administrative, technical, and
physical safeguards as set forth in 45 C.F.R. § 164.308; §164.310; §164.312 and §164.316. The safeguards
must reasonably protect Organization's Protected Health Information from any intentional or unintentional use
or disclosure in violation of the Privacy Rule and limit incidental uses or disclosures made pursuant to a use or
disclosure otherwise permitted by this Agreement. Organization reserves the right to request proof of
reasonable safeguards to determine compliance with the Privacy regulation.
ii) Security of Organization's Electronic Protected Health Information. Business Associate will
comply with the Security rule to meet the obligation to protect Organization's Electronic Protected Health
Information. Business Associate will develop, implement, maintain, and use administrative, technical, and
physical safeguards as set forth in 45 C.F.R. § 164.308; §164.31.0; §164.312 and §164.316. The safeguards
must reasonably and appropriately protect the confidentiality, integrity, and availability of Electronic Protected
Health Information that Business Associate creates, receives, maintains, or transmits on Organization's behalf
as required by the Security Rule, 45 C.F.R. Part 164, Subpart C. Organization reserves the right to request proof
of reasonable safeguards to determine compliance with the Privacy regulation.
iii) Provisions of the American Recovery and Reinvestment Act of 2009 (ARRA). The Business
Associate agrees to comply with any and all privacy and security provisions made applicable to Business
Associate by the ARRA on the applicable effective date as designated by ARRA and any subsequent
regulations promulgated under ARRA and/or guidance thereto.
e) Subcontractors and Agents. Business Associate will require any of its subcontractors and agents, to which
Business Associate is permitted by this Agreement or in writing by Organization to disclose Organization's Protected
Health Information and/or Electronic Protected Health Information, to provide reasonable assurance that such
subcontractor or agent will comply with the same privacy and security safeguard obligations with respect to
Organization's Protected Health Information and/or Electronic Protected Health Information that are applicable to
Business Associate under this Agreement.
2. Compliance with Transaction Standards. Effective on the last date written below, if Business Associate conducts in
whole or part electronic Transactions on behalf of Organization for which DHHS has established Standards, Business Associate
will comply, and will require any subcontractor or agent it involves with the conduct of such Transactions to comply, with each
applicable requirement of the Transaction Rule, 45 C.F.R. Part 162. Business Associate will not enter into, or permit its
subcontractors or agents to enter into, any Trading Partner Agreement in connection with the conduct of Standard Transactions on
behalf of Organization that:
a) Changes the definition, data condition, or use of a data element or segment in a Standard Transaction;
b) Adds any data element or segment to the maximum defined data set;
C) Uses any code or data element that is marked "not used" in the Standard Transaction's implementation
specification or is not in the Standard Transaction's implementation specification; or
d) Changes the meaning or intent of the Standard Transaction's implementation specification.
3. Individual Rights.
a) Access. Business Associate will, within 30 calendar days following Organization's request, make available to
Organization or, at Organization's direction, to an individual (or the individual's personal representative) for inspection
and obtaining copies Organization's Protected Health Information about the individual that is in Business Associate's
custody or control, so that Organization may meet its access obligations under 45 C.F.R. § 164.524.
b) Amendment. Business Associate will, upon receipt of written notice from Organization, promptly amend or
permit Organization access to amend any portion of Organization's Protected Health Information, so that Organization
may meet its amendment obligations under 45 C.F.R. § 164.526.
C) Disclosure Accounting. So that Organization may meet its disclosure accounting obligations under 45 C.F.R.
§ 164.528:
2018 Centron Services, Inc 2
i) Disclosures Subject to Accounting. Business Associate will record the information specified in
Section 3(c)(iii) below ("Disclosure Information") for each disclosure of Organization's Protected Health
Information, not excepted from disclosure accounting as specified in Section 3(c)(ii) below, that Business
Associate makes to Organization or to a third party.
ii) Disclosures Not Subject to Accounting. Business Associate will not be obligated to record
Disclosure Information or otherwise account for disclosures of Organization's Protected Health Information:
A) That occurred before April 14, 2003;
B) For Treatment, Payment or Health Care Operations activities;
C) To an individual who is the subject of Organization's Protected Health Information
disclosed, or to that individual's personal representative;
D) Pursuant to an authorization compliant with 45 C.F.R. § 164.508 that is signed by an
individual who is the subject of Organization's Protected Health Information disclosed, or by that
individual's personal representative;
E) For notification of and to persons involved in the care or payment related to the health care
of an individual who is the subject of Organization's Protected Health Information disclosed and for
disaster relief;
F) To law enforcement officials or correctional institutions in accordance with 45 C.F.R.
§ 164.512(k)(5);
G) For national security or intelligence purposes in accordance with 45 C.F.R.
§ 164.512(k)(2);
H) In a Limited Data Set;
I) Incident to a use or disclosure that Business Associate is otherwise permitted to make by
this Agreement; and
J) Otherwise excepted from disclosure accounting as specified in 45 C.F.R. § 164.528.
III) Disclosure Information. With respect to any disclosure by Business Associate of Organization's
Protected Health Information that is not excepted from disclosure accounting by Section 3(c)(ii) above,
Business Associate will record the following Disclosure Information as applicable to the type of accountable
disclosure made:
A) Disclosure Information Generaliv. Except for repetitive disclosures of Organization's
Protected Health Information as specified in Section 3(c)(iii)(B) below, the Disclosure Information
that Business Associate must record for each accountable disclosure is (i) the disclosure date, (ii) the
name and (if known) address of the entity to which Business Associate made the disclosure, (iii) a
brief description of Organization's Protected Health Information disclosed, and (iv) a brief statement
of the purpose of the disclosure.
B) Disclosure Information for Repetitive Disclosures. For repetitive disclosures of
Organization's Protected Health Information that Business Associate makes for a single purpose to
the same person or entity (including Organization), the Disclosure Information that Business
Associate must record is either the Disclosure Information specified in Section 3(c)(iii)(A) above for
each accountable disclosure, or (i) the Disclosure Information specified in Section 3(c)(iii)(A) above
for the first of the repetitive accountable disclosures, (ii) the frequency, periodicity, or number of the
repetitive accountable disclosures, and (iii) the date of the last of the repetitive accountable
disclosures.
IV) Availability of Disclosure Information. Business Associate will maintain the Disclosure
Information for at least 6 years following the date of the accountable disclosure to which the Disclosure
Information relates.
Business Associate will make the Disclosure Information available to Organization within 30 calendar days
following Organization's request for such Disclosure Information to comply with an individual's request for
disclosure accounting.
d) Restriction Agreements and Confidential Communications. Business Associate will comply with any
agreement that Organization makes that either (i) restricts use or disclosure of Organization's Protected Health
Information pursuant to 45 C.F.R. § 164.522(a), or (ii) requires confidential communication about Organization's
Protected Health Information pursuant to 45 C.F.R. § 164.522(b), provided that Organization notifies Business Associate
2018 Centron Services, Inc
in writing of the restriction orcontidential communication obligations that Business Associate must follow. Organization
will promptly notify Business Associate in writing of the termination of any such restriction agreement or confidential
communication requirement and, with respect to termination of any such restriction agreement, instruct Business
Associate whether any of Organization's Protected Health Information will remain subject to the terms of the restriction
agreement.
4. Privacy Obligation Breach and Security Incidents.
a) Reporting.
i) Privacv Breach. Business Associate will report to Organization any use or disclosure of
Organization's Protected Health Information not permitted by this Agreement or in writing by Organization.
Business Associate will make the report to Organization's Privacy Official not more than 15 calendar days
after Business Associate learns of such non-pennitted use or disclosure. Business Associate's report will at
least:
A) Identify the nature of the non -permitted use or disclosure;
B) Identify Organization's Protected Health Information used or disclosed;
C) Identify who made the non -permitted use or disclosure and who received the non -permitted
disclosure;
D) Identify what corrective action Business Associate took or will take to prevent further non -
permitted uses or disclosures;
E) Identify what Business Associate did or will do to mitigate any deleterious effect of the
non -permitted use or disclosure; and
F) Provide such other information, including a written report, as Organization may reasonably
request.
ii) Security Incidents. Effective on the last date as written below, Business Associate will report to
Organization within 15 calendar days any attempted or successful (A) unauthorized access, use, disclosure,
modification, or destruction of Organization's Electronic Protected Health Information or (B) interference with
Business Associate's system operations in Business Associate's information systems, of which Business
Associate becomes aware. Business Associate will make this report in such form as Organization requires,
except if any such security incident resulted in a disclosure of Organization's Protected Health Information or
Electronic Protected Health Information not permitted by this Agreement, Business Associate will make the
report in accordance with Section 4(a)(i) above.
b) Termination of Agreement.
I) Right to Terminate for Breach. Organization may terminate this Agreement if it determines, in its
sole discretion, that Business Associate has breached any provision of this Agreement and upon written notice
to Business Associate of the breach, Business Associate fails to cure the breach within 30 calendar days after
receipt of the notice. Organization may exercise this right to tenninate this Agreement by providing Business
Associate written notice of termination, stating the failure to cure the breach of the Agreement that provides
the basis for the termination. Any such termination will be effective immediately or at such other date specified
in Organization's notice of termination.
ii) Right to Terminate on Regulation Change. Either Organization or Business Associate may
terminate this Agreement if amendment or addition to 45 C.F.R. Parts 160-64 affects the obligations under this
Agreement of the party exercising the right of termination. The party so affected may terminate this Agreement
by giving the other party written notice of such termination at least 90 calendar days before the compliance
date of such amendment or addition to 45 C.F.R Parts 160-64.
iii) Obligations on Termination.
A) Return or Destruction of Organization's Protected Health Information as Feasible.
Upon termination or other conclusion of this Agreement, Business Associate will, if feasible, return
to Organization or destroy all of Organization's Protected Health Information in whatever form or
medium, including all copies thereof and all data, compilations, and other works derived therefrom
that allow identification of any individual who is a subject of Organization's Protected Health
Information. Business Associate will require any subcontractor or agent, to which Business
Associate has disclosed Organization's Protected Health Information as permitted by Section 1(e) of
this Agreement, to if feasible return to Business Associate (so that Business Associate may return it
to Organization) or destroy all of Organization's Protected Health Information in whatever form or
2018 Centron Services, Inc tl
medium received from Business Associate, including all copies thereof and all data, compilations,
and other works derived therefrom that allow identification of any individual who is a subject of
Organization's Protected Health Information, and certify on oath to Business Associate that all such
information has been returned or destroyed. Business Associate will complete these obligations as
promptly as possible, but not later than 60 calendar days following the effective date of the
termination or other conclusion of this Agreement.
B) Procedure When Return or Destruction Is Not Feasible. Business Associate will
identify any of Organization's Protected Health Information, including any that Business Associate
has disclosed to subcontractors or agents as permitted by Section 1(e) of this Agreement, that cannot
feasibly be returned to Organization or destroyed and explain why return or destruction is infeasible.
Business Associate will limit its further use or disclosure of such information to those purposes that
make return or destruction of such information infeasible. Business Associate will require such
subcontractor or agent to limit its further use or disclosure of Organization's Protected Health
Information that such subcontractor or agent cannot feasibly return or destroy to those purposes that
make the return or destruction of such information infeasible. Business Associate will complete these
obligations as promptly as possible, but not later than 60 calendar days following the effective date
of the termination or other conclusion of this Agreement.
C) Continuing Privacy and Security Obligation. Business Associate's obligation to protect
the privacy and safeguard the security of Organization's Protected Health Information as specified
in this Agreement will be continuous and survive termination or other conclusion of this Agreement.
C) Indemnitv. Business Associate will indemnify and hold harmless Organization and any Organization affiliate,
officer, director, employee or agent from and against any claim, cause of action, liability, damage, cost or expense,
including attorneys' fees and court or proceeding costs, arising out of or in connection with any non -permitted use or
disclosure of Organization's Protected Health Information or other breach of this Agreement by Business Associate or
any subcontractor or agent under Business Associate's control.
i) Right to Tender or Undertake Defense. If Organization is named a party in any judicial,
administrative or other proceeding arising out of or in connection with any non -permitted use or disclosure of
Organization's Protected Health information or other breach of this Agreement by Business Associate or any
subcontractor or agent under Business Associate's control, Organization will have the option at any time either
(A) to tender its defense to Business Associate, in which case Business Associate will provide qualified
attorneys, consultants, and other appropriate professionals to represent Organization's interests at Business
Associate's expense, or (B) undertake its own defense, choosing the attorneys, consultants, and other
appropriate professionals to represent its interests, in which case Business Associate will be responsible for
and pay the reasonable fees and expenses of such attorneys, consultants, and other professionals.
ii) Right to Control Resolution. Organization will have the sole right and discretion to settle,
compromise or otherwise resolve any and all claims, causes of actions, liabilities or damages against it,
notwithstanding that Organization may have tendered its defense to Business Associate. Any such resolution
will not relieve Business Associate of its obligation to indemnify Organization under this Section 4(c).
5. General Provisions.
a) Inspection of Internal Practices, Books, and Records. Business Associate will make its internal practices,
books, and records relating to its use and disclosure of Organization's Protected Health Information available to
Organization and to DHHS to determine Organization's compliance with the Privacy Rule, 45 C.F.R. Part 164, Subpart
E.
b) Definitions. The terms "Covered Entity," "Electronic Protected Health Information," "Protected Health
Information," "Standard," "Trading Partner Agreement," and "Transaction" have the meanings set out in 45 C.F.R.
§ 160.103. The term "Standard Transaction" has the meaning set out in 45 C.F.R. § 162.103. The term "Required by
Law" has the meaning set out in 45 C.F.R. § 164.103. The terms "Health Care Operations," "Payment," "Research," and
"Treatment" have the meanings set out in 45 C.F.R. § 164.501. The terms "Limited Data Set" has the meaning set out
in 45 C.F.R. § 164.514(e). The term "use" means, with respect to Protected Health Information, utilization, employment,
examination, analysis or application within Business Associate. The terms "disclose" and "disclosure" mean, with
respect to Protected Health Information, release, transfer, providing access to or divulging to a person or entity not within
Business Associate. For purposes of this Agreement, Organization's Protected Health Information encompasses
Organization's Electronic Protected Health Information.
C) Amendment to Agreement. Upon the compliance date of any final regulation or amendment to final
regulation promulgated by DHHS that affects Business Associate's use or disclosure of Organization's Protected Health
Information or Standard Transactions and this Agreement will automatically amend such that the obligations imposed on
2018 Centron Services, Inc
Business Associate remain in compliance with the final regulation or amendment to final regulation, unless Organization
or Business Associate elects to tenninate the Agreement in accordance with Section 4(b)(ii).
d) No Third Party Beneficiaries. Nothing in this Agreement shall be construed as creating any rights or benefits
to any third parties.
IN WITNESS WHEREOF, Organization and Business Associate execute this Agreement in multiple originals to be effective on
the last date written below, except as otherwise specified herein.
Centron Services, I c. dl /a Credit Systems
By: 4i p ^
Its: jf= a
Date:
2018 Centron Services, Inc
City of Laurel
By: Thomas C. Nelson
Its: Ma or
Date:
10-14
Prz otic l % sin ss Solutions ince 1927
Centron Services, Inc. d/b/a Credit Systems (hereinafter referred to as CSI) is a full-service collection
agency. We offer bad debt collection, pre -collection, managed self -pay collections, insurance billing and
collection, skip tracing, asset checks, referral to legal counsel and follow through the entire legal
process, and post judgment collection to include writs of execution and sale of property.
The bad debt collection process is very hands on where we do not provide a script for the collection
staff. We hire well-spoken communicators who can examine the account and determine the best course
of action to get the account collected in full and in a timely manner. Below is general description of how
an account moves through the collection process with an emphasis a few common scenarios that may
be of interest.
- When a collection account is referred to us for collection we first send an acknowledgement to
our client for verification of consumer name and amount owed.
- We then send our first notice to the consumer. This notice fully complies with the Fair Debt
Collection Practices Act (FDCPA) in that is gives the consumer notice that the account has been
referred to a collection agency and that they have certain rights that are defined within the
letter.
o Each account that is listed will have a first notice sent on it. Accounts are never grouped
together on this specific letter.
- Depending on the information that is listed with the account it may be sent to our skip -tracing
company to have a full search done.
o This information is then placed in the account and transferred to a live collector to
follow up on.
- The account is referred to a live collector within seven working days from placement.
o Once received by our collector, the consumer is called and asked to pay the account in
full.
0 If multiple numbers exist we will attempt to reach the consumer on all of them.
o In the event the consumer is unable to pay the account in full, we then attempt to set
up a payment arrangement that will comply both with the consumer's budget as well as
be acceptable to our client and collector.
■ In the case where an acceptable agreement does not seem possible due to
circumstances we will send the consumer a cooperative statement to fill out.
■ This form allows the collector to compare the income vs. expenses of
the consumer and work with them as a financial counselor in order to
come to a repayment agreement on the account.
o If the consumer complies with the arrangements, then we monitor the payments to be
certain that none are missed.
o If payments are not made as promised or if the consumer does not cooperate with our
collector, we then consider if legal action is warranted.
■ In some instances a payment plan may be reestablished with the consumer.
Throughout the process of contacting the consumer our collector is also collecting information
regarding assets that will assist in determining whether or not we will consider legal action.
Calling the consumer is an ideal method of contact, but circumstances do not always lend
themselves to direct telephone contact.
o In such instances we rely on notices to convey a sense of urgency about the account and
move the consumer to contact us.
■ The account is also referred to two credit reporting repositories for inclusion on
the consumer's credit file. Those repositories are Equifax and Transunion.
An amicable solution is always attempted during our collection process. There are occasions
where a dispute is identified on the account. Some disputes can be resolved by an internal
review of the account, but if that cannot be done the following process takes place.
o We ask the consumer to send documentation to support their dispute.
■ When a dispute is received either verbal or written we are required to cease
collection efforts until an investigation is done into their dispute.
o Once the documentation is received we send it to our client and ask for a written
response from them within 30 days to be in compliance with the Fair Credit Reporting
Act.
■ Once the client's response is received we will relay the response onto the
consumer.
o If the response is that the dispute is not valid we will continue collection
efforts.
o If the dispute is valid the account is cancelled back to the client.
In some instances we determine that legal action is necessary to get the account collected. We
do not take the seriousness of court actions lightly.
o When it is determined that legal action is required, a letter is sent from our attorney
that advises the consumer that legal action is pending and emphasizes the necessity of
contacting our office immediately.
® Included with this letter is a cooperative statement for the consumer to fill out if
they do not feel they can pay the account in full.
o If the consumer still does not cooperate, then the action is filed by our attorney in CST's
name and we proceed through the legal system.
o Our client is notified when legal action is initiated.
o The amount of time that it takes an account to reach the point where legal action is
taken varies for each individual account.
® Once judgment is obtained we will follow the action through each step and
make certain that garnishments/writs and sale of property are monitored with
due diligence.
o We will petition the court for a proceeding supplemental hearing when
it is warranted. In that situation, a notice to appear is served upon the
judgment consumer and he/she is direct to appear in court at a named
time and present all financial records, including all assets. This process
can prove to be effective.
A summary of CSI's workflow is as follows:
Day 1 - Accounts are manually or electronically loaded
Day 2 - First notices are sent to the consumers. If the account needs skip tracing then
the account is electronically sent
Day 7 - Account is presented to a collector who will do first level work on the account
which will consist of the following but is not limited to the following:
Collector will try to contact the consumer via telephone. They will try all
numbers provided and will skip trace account for more information to ensure
we have current information. One of the following will happen from there:
Positive contact- A promise will be made to pay in full the
account and or make payment arrangements to satisfy the obligation.
This promise will then be monitored.
Negative contact- The consumer will either question or dispute
the validity of the debt or their obligation to pay. We will provide the
necessary information to the consumer and try to resolve the issue.
No contact- The consumer will not be reachable by
telephone and /or mail and there will be no current information in our
skip tracing resources.
Whether it is a negative or no contact, if the consumer is not willing to resolve
the issue and pay the debt, the account will be reviewed for legal action. If the
account is sent to our legal department we will petition the court for judgment
in order to garnish available assets to satisfy the debt.
If the consumer has no assets and does not qualify for legal action we will
continue to work the account and/or close the account back to our client as
agreed. If collection efforts are exhausted on the account the collector may
choose to place the account in a dormant status. This is done to allow the
account to remain on the credit file and be reopened in any circumstance
deemed necessary.
Day 31 plus - In a positive contact situation the accounts are monitored. In a negative contact
situation, we continue to try to resolve it and turn it into a positive contact situation. In a no
contact situation we utilize letters, skip -tracing and calls to try to turn it into a positive contact
situation.
Day 120- Account is presented to Equifax and TransUnion to be placed on the consumer's
credit file as a bad debt collection account.
December 28, 2018
AFFILIATE QFFICE
SERVING THE WEST SINCE 1927
SERVICES INC.
City of Laurel
C/O: Admin. Assistant
PO Box 10
Laurel, MT 59044
To whom it may concern:
Please find the fully conformed collection services contract, assignment of accounts contract, and business
associate agreement enclosed with this letter.
We appreciate the opportunity to build this partnership with the City of Laurel and look forward to providing
you quality service.
If you have any question or require additional information, please don't hesitate to contact me by phone at (406)
495-7270 or email at mholland@centronservices.com.
Sincerely,
Mike Rolland
Vice President
(406)495-7270
(406) 431-7535
mholland@centronservices.com
2525 COLONIAL DRIVE -P.O. Box 875 94HELENA, MT 59624
(406) 442-3728 -FAX (406) 442-8067 ° 1-800-223-8112 DATA CENTER