Terms and Conditions



Applies to all Stages

The Terms and Conditions below apply regardless of the Stage you submit any accounts for collection.

Pan Am Collections, Inc. herein referred to as (PAC).

Pan Am Collections, Inc. hereinafter referred to as PAC, will send a series of four demands on each claim directing the Debtor to pay the Client monies owed or to make contact with Client for payment arrangement.  These Stage 1 letters will attempt to secure payment from the debtor within approximately 60 days. There is no minimum purchase and may be purchased in advance, or invoiced after placement when purchasing our Demand Service.

This is our Flat Rate Demand Service. The client agrees to pay a flat rate of $13.99 per account sent to PAC.

Once in Stage II client will responsible for all contingency fees associated with the account.

The Client agrees that PAC is authorized to forward all unpaid claims to Stage II for intensive collection procedures according to the contingency fees as stated below, unless contract with the Debtor states otherwise allowing for the addition of collection costs (not available in certain States).   Client certifies that the provision in such contract abide by the laws of its state.  The Client also agrees to provide PAC with a copy of documentation verifying the debt if requested.  In the absence of an interest rate given by Client to PAC, Client agrees that PAC may accrue interest on each debt according to the state’s statutory interest rate in which the debtor resides or the contract took place.  This statutory interest will be shared with Client minus PAC’s current contingency fee.  The statutory interest may also be waived by PAC in an effort to effect collection.

PAC agrees to notify the Client in writing via fax, mail, online and/or e-mail prior to transferring a claim to the Collection Department for Intensive Service.  The Client will be responsible for notifying PAC within the allotted time given in the transfer notification if Client does not wish to pursue intensive collection.


Contingency Rates:

All accounts $100 and under………..….45%                              Commercial under 1 yr.

Retail or Medical over $100…….……..…31%                                Accounts $100 and under …………………..……45%

Commercial over 1 year, over $100…31%                                Accounts over $100 through $2,000.00…..20%

All “Skip-traced” accounts…………….……50%                               Remaining over $2,000.00.………..……….…..15%


Client understands that PAC is entitled to contingency fees after the claim has been assumed by the Collection Department.  If contingency fees have been added on to the account and are payable by the debtor, any payments will be split between the amount due Client and PAC.  If payment is made directly to the Client while the claim is in Stage II or Stage III, Client will be invoiced for any contingency fees.  Invoices are due upon receipt.  Client understands and acknowledges that PAC is a credit reporting agency and therefore will immediately report all payments made directly to client.  Most clients prefer to forward payments made in the Intensive collections phase directly to PAC.  Client assigns PAC as its agent to collect on submitted accounts and deposit debtor payments as its agent.  All payments made to PAC will promptly be credited to the account and, less any contingency fees, will be sent directly to client on or about the 15thof each month following the month in which payment is received.    Any monies owed Client may be offset by monies owed to PAC.

In the event that merchandise should be returned, a discovery of misapplied customer payments has been made or a claim is cancelled during intensive collections, a reduced fee of not less than one half of normal fees will be billed and shall be due upon receipt.  In the event that collection efforts should become necessary on any monies due PAC, Client agrees to pay any and all reasonable costs of collection up to 40% of the amount due, including but not limited to collection agency fees, reasonable attorney fees, plus court costs.  Client also agrees that PAC will be entitled to interest on any overdue amounts at the rate of 1.5% per month after 30 days.  In any action or proceeding arising out of or related to the collection of any debt assigned pursuant to this agreement, the prevailing party shall be entitled to reasonable attorney’s fees and court costs in addition to any other relief in which it may be entitled.

If, after a reasonable period of time, the desired results have not been obtained, unpaid claims may be forwarded to an attorney for further collection efforts, based on a contingency fee of 38%.  The greatest majority of recoveries are made without litigation, but if suit is required, and with the Client’s consent, there may be an additional suit fee.  Should client authorize litigation, any necessary fees and court costs become payable by the Client.  The attorney will attempt to recover such costs from the debtor unless other arrangements have been made.  The above fees and conditions do not include defense of a counterclaim.


No other verbal or otherwise implied warranties will be considered valid. No changes or custom contracts will be honored without prior approval from the Home Office and must be signed by a Corporate Officer of PAC.  The Client represents and warrants that account holders submitted have been provided all required Truth in Lending disclosures, and have obtained all necessary signatures so as to fully comply with the law.  Client understands and acknowledges that, unless requested by the debtor, no statements, invoices, or payment requests of any kind will be sent to the debtor once the account is submitted to PAC.  Client further agrees to inform PAC upon receipt of any information which could render the account information contained herein more complete, accurate, or obsolete, including but not limited to, notice of a consumer bankruptcy filing, all payments, communication from the account holder, and disputes.  Client agrees to inform PAC of any change in Client’s contact information including, but not limited to, change of address, phone, or contact person.  Client certifies that each account is placed solely with PAC and is not active with any other agency.  Client further certifies that PAC will be notified if any account is placed with another agency, In the event that Client fails to notify PAC of any such procedures, Client will be liable for any fees outlined in this contract including but not limited to collection agencies up to 40% of the amount owed, reasonable attorney fees, or court costs. Client agrees to pay interest on any past due amounts owed to PAC, over 30 days at a rate of 18% per annum or the maximum amount allowed by the State Law of the Client, whichever is less.

If any provision of this agreement is deemed to be invalid or unenforceable, all other provisions remain valid and enforceable.

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