If a Consumer and a Service Provider enter into a Service Contract, these Escrow Instructions (“Escrow Instructions”) apply. These Escrow Instructions govern Escrow Accounts.
We may modify these Escrow Instructions without prior notice to you, and any revisions to these Escrow Instructions will take effect when posted on the Site unless otherwise stated. Please check the Site often for updates.
These Escrow Instructions hereby incorporate by reference the Terms of Service (“Terms of Service”). Capitalized terms not defined in these Escrow Instructions are defined in the User Agreement, elsewhere in the Terms of Service, or have the meanings given such terms on the Site. These Escrow Instructions do not apply to Hourly Contracts.
1. DIGITAL SIGNATURE
By clicking to fund Escrow (a “Funding Approval”) or to accept a Service Contract, Consumer and Service Provider are deemed to have executed these Escrow Instructions electronically, effective on the date Service Provider clicks to accept the engagement, pursuant to California Civil Code section 1633.8 and the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Sec. 7001, et seq., as may be amended from time to time (the “E-Sign Act“). Doing so constitutes an acknowledgement that you are able to electronically receive, download, and print these Escrow Instructions. All references to the Escrow in these Escrow Instructions will include the initial Funding Approval and any additional Funding Approval for a Service Contract.
Consumer and Service Provider irrevocably authorize and instruct Credzu, LLC (“Credzu“) to release applicable portions of the Escrow Account (each portion, a “Release”) to their Service Provider Escrow Account or Consumer Escrow Account, as applicable, upon the occurrence of and in accordance with one or more Release Conditions provided below or as otherwise required by applicable law or the Terms of Service. The amount of the Release will be delivered to the applicable Escrow Account in accordance with Service Provider’s or Consumer’s instructions, as applicable, these Escrow Instructions, and the other Terms of Service.
As used in these Escrow Instructions, “Release Condition” means any of the following:
On the occurrence of a Release Condition, Consumer and Service Provider are deemed to and hereby agree that the instruction to Credzu and its wholly owned subsidiaries to release funds is irrevocable. Without limiting the foregoing, Consumer’s instruction to Credzu and its wholly owned subsidiaries to pay a Service Provider is irrevocable. Such instruction is Consumer’s authorization to transfer funds to Service Provider from the Consumer Escrow Account or authorization to charge Consumer’s Payment Method. Such instruction is also Consumer’s representation that Consumer has received, inspected and accepted service provided by the Service Provider. Consumer acknowledges and agrees that upon receipt of Consumer’s instruction to pay Service Provider, Credzu will transfer funds to the Service Provider and that Credzu and other Affiliates have no responsibility to and may not be able to recover such funds. Therefore, and in consideration of services described in this Agreement, Consumer agrees that once Credzu or its subsidiary has charged Consumer’s Payment Method, the charge is non-refundable.
To be fair to Consumers and Service Providers, Credzu has a procedure for Service Contracts that have an Escrow Account with a balance but has had no activity for 90 consecutive days after the last milestone date contained in the Service Contract (a “Dormant Engagement”). For purposes of determining Dormant status, “activity” means business term or milestone updates or requests, Escrow Funding, Escrow Release, Escrow Refunds, Funding requests, Release requests, requests to close the Service Contract, Status Report submittals, or actions under the Dispute Assistance Program.
Dormant Engagements are subject to the following rules:
Consumer and Service Provider are encouraged to come to a mutual agreement if refunds or cancellations are necessary. If there are no funds in escrow, Consumer or Service Provider can cancel the contract at any time. If funds are held in escrow, refunds and cancellations must be initiated by Consumer or Service Provider by following the steps below.
If Service Provider wants to cancel a Service Contract with funds held in escrow, Service Provider must click to close the contract. When Service Provider clicks to close the contract, Service Provider and Consumer agree that Credzu is authorized and irrevocably instructed to immediately release to Consumer all Escrow funds associated with the contract.
If Consumer wants to cancel a contract with funds held in escrow, Consumer must click to close the contract. Service Provider must either click to approve or dispute the Consumer’s cancellation within 7 days. If Service Provider approves the cancellation, Service Provider and Consumer agree that Credzu is authorized and irrevocably instructed to immediately release to Consumer all escrow funds associated with the contract. If Service Provider takes no action within 7 days from the date notification of the cancellation is sent to Service Provider, Service Provider and Consumer agree that Credzu is authorized and irrevocably instructed to immediately release to Consumer all Escrow funds associated with the contract. If Service Provider disputes the cancellation, Service Provider and Consumer will be offered Credzu Dispute Assistance.
If Consumer and Service Provider fail to come to a mutual resolution by way of the Refund and Cancellation process, Credzu provides this Dispute Assistance Program as a mechanism to resolve the Dispute.
Dispute Assistance is only available (i) after initial funding of the Escrow Account associated with the Service Contract, and (ii) prior to the Dispute Assistance Deadline. Dispute Assistance is not available to either the Service Provider or the Consumer via the Site after the Dispute Assistance Deadline.
Credzu will first attempt to assist Consumer and Service Provider by reviewing the Dispute and proposing a mutual, non-binding resolution.
Service Provider and Consumer each has the right to demand Arbitration of a Service Contract before the Arbitration Limitations Date if the Escrow associated with the Service Contract has been funded at least once. If either Consumer or Service Provider demands Arbitration in accordance with these Escrow Instructions and you are not the party that requested Arbitration, you agree to submit to the Arbitration and pay your share of the Arbitration fees detailed below. In any Arbitration, each of you and the other User is a “Dispute Party,” and collectively you are the “Dispute Parties.”
Any such Arbitration will be conducted by a neutral third-party Arbitration service: the American Arbitration Association (the “AAA”). By default, Arbitration will be conducted by AAA unless Credzu chooses another Arbitration service.
When a User demands Arbitration (the “Arbitration Plaintiff”), or when the circumstances dictate that Credzu notify a User of its right to file for Arbitration as described above, Credzu will provide the User with instructions on initiating the Arbitration. After the parties have initiated the Arbitration, Credzu will provide the arbitrator with supporting documentation including but not limited to the documents submitted to Credzu during the dispute resolution process, information available via the Site, and access to the Site.
If the Arbitration Plaintiff makes the Arbitration Payment, Credzu will contact the other party (“Arbitration Respondent”) to request that the Arbitration Respondent pay its portion of the Arbitration fees as well. If the Arbitration Respondent fails to make the Arbitration Payment and submit to such Arbitration within 5 business days after the First Arbitration Notice, Credzu will suspend the Arbitration Respondent’s account, and both parties will be deemed to have irrevocably authorized and instructed Credzu to, and Credzu will, release the funds sought by the Arbitration Plaintiff in the demand for Arbitration to the Arbitration Plaintiff, to the extent such funds remain in the Escrow Account. If no funds remain in the Escrow Account, Credzu will close the Dispute.
If both parties pay their portion of the Arbitration fees, Credzu will instruct the parties on the process for initiating the Arbitration with the Arbitration service provider. After the parties have initiated the Arbitration, Credzu will provide the arbitrator with relevant documentation, including information collected in the informal dispute process and contents of the Contract Room.
When you electronically authorize payment of the invoice for the Arbitration Payment as delivered to you by Credzu by email, you irrevocably authorize and instruct (i) Credzu or its Affiliates, as your agent, to charge your Payment Method for the amount of the payment for credit to your Escrow Account; and (ii) Credzu, as escrow agent, to immediately release that amount from your Escrow Account and pay it to Credzu. If Credzu or its Affiliates cannot collect sufficient funds to fulfill the Escrow for any reason, Credzu has no obligation with respect to making the payment to Credzu on your behalf, and you will be considered as not having paid your portion of the Arbitration fees.
If both Service Provider and Consumer fail to demand binding Arbitration for an unresolved Dispute by the Arbitration Limitations Date, then Consumer and Service Provider will be deemed to have irrevocably authorized and instructed Credzu to, and Credzu will, release all funds in the Escrow Account to Consumer.
You agree that the arbitrator is authorized to decide the Dispute within its discretion. You agree that the arbitrator’s award is final, that it may be entered in and enforced by any court of competent jurisdiction, and that if the arbitrator delivers notice of any award to Credzu, then Credzu and Credzu have the right to treat such notice as conclusive and act in reliance thereon.
All Escrow Funds released under this program are subject to the normal Service Fees associated with Escrow Accounts, as detailed in the User Agreement and applicable Escrow Instructions.
All notices to a User required by these Escrow Instructions will be made via email sent by Credzu to the User’s registered email address. Users are solely responsible for maintaining a current, active email address registered with Credzu, for checking their email and for responding to notices sent by Credzu to the User’s registered email address.
All claims, disputes or other disagreements between you and another User that are covered by the Dispute Assistance Program must be resolved in accordance with the terms in the Dispute Assistance Program. All claims filed or brought contrary to the Dispute Assistance Program will be considered improperly filed, and Credzu will have the right to take any other action, including suspension or termination of your Account, and any other legal action as Credzu deems appropriate in its sole discretion.
Credzu, in its sole discretion, reserves the right to suspend or terminate your Account immediately upon giving notice to you if Credzu believes you may be abusing the Dispute Assistance Program or as otherwise permitted by the Terms of Service. However, any Disputes for any Service Contracts that existed prior to termination will be subject to the Terms of Service.
RULES AND FEES FOR ARBITRATIONS CONDUCTED BY THE AMERICAN ARBITRATION ASSOCIATION
This Appendix A summarizes certain pertinent contractual terms that American Arbitration Association (the “AAA”) has agreed to in providing arbitration services to Consumers and Service Providers who choose the AAA as their arbitrator under the Escrow Instructions. The AAA is solely a third-party arbitration service provider. Credzu and our affiliates have no direct or indirect affiliate, partnership, joint venture, ownership or control relationship with or interest in the AAA. Credzu and our Affiliates assume no responsibility or liability for the services of the AAA.
All Arbitrations by the AAA are conducted by a single arbitrator.
The AAA will provide the parties the opportunity to participate in arbitrator selection through a strike-and-rank process of pre-qualified arbitrators.
The AAA will provide Credzu and the parties with a written award promptly upon the conclusion of the Arbitration, and in no event later than 14 calendar days after conclusion of the Arbitration. At the arbitrator’s sole discretion, the arbitrator may provide, but is not required to provide, written reasons for the Award to the parties.
The fee for Arbitrations by the AAA is $875, regardless of the amount at issue.
Each of the Dispute Parties and Credzu will share the cost equally ($291 each).
Consumer and Service Provider will solely bear and pay any other costs it incurs related to the Arbitration.
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