July 19, 2006
Dear Dental Provider,
The purpose of this letter is to clarify the ownership of dental accounts receivable by Alternative Debt Portfolios, L.P. (“ADP”).
Beginning in June 2005, E-Z PAY Services, Inc. (E-Z PAY) solicited ADP to purchase portions of E-Z PAY’s portfolio of dental accounts receivable paper. ADP made an initial purchase and 12 subsequent purchases under a Purchase Agreement and the accompanying Patient Provider Guarantee, which provides that “Seller [E-Z PAY] agrees that all financial liability to the medical providers named on all contracts (E-Z PAY Enrollment Forms) assigned to company [ADP] is the sole responsibility of the seller and will continue to be so after such assignment. Seller agrees to indemnify and hold harmless Company from any and all liabilities arising from the assignment of Contracts (E-Z PAY Enrollment Forms) to Company.( Exhibit A )
E-Z PAY’s Purchase Agreements further provide that the contracts were sold to ADP free of any liens and encumbrances and that the “seller is authorized to sell the contracts to” ADP.
Accordingly, E-Z PAY maintains the sole responsibility to pay any and all sums due to you as a dental provider.
ADP has clear title to
these accounts. The Second Judicial District Court of the State of
A)
Contacting
the patients that are obligated to pay under the contracts already purchased by
ADP in any manner whatsoever and specifically to prohibit direction to pay E-Z
PAY Services or any other party; and
B)
Contacting
Duvera regarding the contracts already purchased by ADP and being serviced
there as ADP’s collateral for the purposes of disrupting the electronic funds
transfer by the patients to Duvera on behalf of ADP;
C)
Contacting
and directing the dentists to follow-up with ADP for the payment of any monies due
and owed by E-Z PAY to the dentists;
D)
Taking
any actions whatsoever to change the balances of the existing contracts owned
by ADP and those contracts serviced by Duvera as ADP’s collateral;
In summary this letter and the attachments show that any direction by E-Z PAY to dental providers to pursue ADP for payment of any outstanding liabilities is misleading and misdirected. Any dental providers should pursue any current and future actions against E-Z PAY:
Water View
904-807-8700
Sincerely,
The Management Team
Alternative Debt Portfolios, L.P.
