Certified Revenue Cycle Representative (CRCR) Practice Exam

Which of the following is NOT contained in a collection agency agreement?

1. A clear understanding that the provider retains ownership of any outsourced activities

2. Specific language as to who will pay legal fees, if needed

3. An annual renewal clause

4. A mutual hold-harmless clause

The correct answer is: A mutual hold-harmless clause

A mutual hold-harmless clause is typically not included in a collection agency agreement. Such agreements primarily focus on defining the roles and responsibilities of both the provider and the collection agency regarding the collection process. The purpose of a collection agency is to recover outstanding debts on behalf of the provider, and the specifics of liability and indemnity are usually addressed through other legal agreements or mechanisms. The other components mentioned are standard inclusions in collection agency agreements. A clear understanding that the provider retains ownership of any outsourced activities reinforces the fact that the collection agency is working on behalf of the provider and does not take ownership of the debt itself. Specific language regarding who will pay legal fees helps to clarify financial responsibilities in case legal action becomes necessary, while an annual renewal clause provides details about the duration of the agreement and the process for renewal, ensuring that both parties have clarity on the terms of their ongoing relationship.