Beneficiary Agreement

Submitted 1/30/2013 in Terms & Conditions

By completing the Request for Approval Form, American Bill Pay beneficiaries/recipients/applicants agree that he/she has read and understand the American Bill Pay Beneficiary Agreement as detailed...

THIS AGREEMENT is made and entered into on the date of the Request for Approval (RFA) Form submission by the "recipient" of whom is a beneficiary of The American Recovery & Reinvestment Act of 2009: Bill Payment Government Assistance Program (BPGAP) regulated, governed and funded by the Recovery Accountability and Transparency Board.

WHEREAS, the pass through entity and grantor, "American Bill Pay" disburses the grant for the BPGAP, legally described as follows: 

WHEREAS, the beneficiary and grantor, known as "the parties" desire to enter into an agreement for the successful and completed operation of the BPGAP. 
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 

Section 1.
Promise to Pay
(a) American Bill Pay promises the beneficiary to disburse the monetary grant to the approved creditors listed on the RFT Form.

(b) The beneficiary agrees that after the creditors listed on the RFT Form confirms receipt of the grant from American Bill Pay, the Service Charge will be paid in full no later than 3 business days, known as the "Invoice Date", printed on the American Bill Pay Invoice.

(c) Failure to complete the Service Charge on or before the Invoice Date levies American Bill Pay to retract the disbursed grant, marking it as an unauthorized payout; this results in the creditor's bank refunding or canceling the grant received. A Compounded Late Fee of 15% will also be added to the Invoice total every 4 days.

(d) The Invoice amount remains due after the disbursed grant is refunded or cancelled and the grant will not be repaid until the Service Charge and its Late Fees are paid in full. If the American Bill Pay Service Charge remains unpaid 15 days after the Invoice Date, the Late Fee is charged daily at 15% of the Invoice total.
The awarded grant remains available for repayment within 30 days of the Invoice Date and beneficiaries have a total of 30 days to complete the American Bill Pay Service Charge. 30 days after the unpaid Invoice Date, beneficiaries lose access to the American Bill Pay Online Support and their file is closed.
The 30th day is the last day that American Bill Pay will accept any Service Charge payments from benficiaries.

(e) A report will be submitted to The Credit Reporting Agencies 120 days after the "Invoice Date". If the BPGAP is completed successfully, the report will take a positive affect on the recipients FICO score. If the BPGAP was not completed successfully, this report will affect the beneficiaries FICO score negatively; the higher the American Bill Pay Service Charge balance, the more affected the beneficiary's FICO score will be.

Section 2. 
Refund Policy
(a) Beneficiaries agree that all monies paid to American Bill Pay is a Service Charge for utilizing the BPGAP. The disbursed funds are non-repayable and American Bill Pay recipients are required to pay only the Service Charge. Late Fees may be applied for outstanding balances.

(b) The BPGAP is structured to be successfully completed through a 3 step process: 

(c) Therefore, American Bill Pay constitutes a No Refund Policy.

Section 3. 
Approval, Tender, and Disbursement of Funds.
(a) Approval.
The beneficiary must submit the RFA Form accessible through the American Bill Pay website ( to The Recovery Accountability and Transparency Board for review and approval. The Recovery Board notifies all applicants via email and/or mail of the submitted RFA Form. The application process takes 2-3 business days during which the applicant is notified by American Bill Pay via phone, text, fax and/or email of the application status.

American Bill Pay notifies the applicant of their approved status and provides the Request for Tender (RFT) Form to the applicant, "who now becomes the beneficiary", for submission . The RFT must be submitted to American Bill Pay within 7 days. After submission, American Bill Pay reviews the RFT and determines the accounts and/or creditors eligible for receiving the grant to be disbursed.

Disbursement of Funds.
American Bill Pay disburses the grant to the approved accounts within the processing time of 2-7 business days. Beneficiaries are notified of the successful payout via The Monetary Grant Summary (MGS) no later than the 7th business day of processing and an Invoice via mail and the Online Support system from American Bill Pay for the Service Charge.

(d) Grants are disbursed to approved creditors via the Automated Clearing House (ACH) Electronic Check Payment system.

(e) Beneficiaries are required to complete the Service Charge. Unpaid Service Charges levy a late fee described in [
Section 1 - c, d & e].

(f) A successful and completed BPGAP requires a paid Service Charge.

Section 4. 
Service Charge Method of Payment.
(a) Beneficiaries agree to the method of payment for the American Bill Pay Service Charge.

(b) All Service Charge payments are made either to American Bill Pay's account number via the Moneygram ExpressPayment® system or via credit/debit card via Google Wallet.

Section 5. 
Closing of American Bill Pay File.
Beneficiaries may not request their file to be closed if:
(a) there is an outstanding balance on the account
(b) the grant has been disbursed to the creditors listed on the RFT

Beneficiaries agree to indemnify, defend and hold harmless American Bill Pay, its affiliates and suppliers from any liability, loss, claim and expense (including attorneys’ fees and costs) related to or arising from the beneficiaries violation of this Agreement.

This communication is for the purpose of collecting a debt, and any information obtained will be used for that purpose. This notice is required by the provisions of the Fair Debt Collection Practices Act and does not imply that we are attempting to collect money from any one who has discharged the debt under the bankruptcy laws of the United States.


American Bill Pay reserves the right, at its sole discretion, to change, modify, add or remove any portion of this Agreement in whole or in part, at any time. Changes in this Agreement will be effective immediately. Beneficiaries continued use of our program after any changes to this Agreement are posted will be considered acceptance of those changes. American Bill Pay may terminate, change, suspend or discontinue any aspect of the American Bill Pay Government Assistance Program at any time. American Bill Pay may also impose limits on certain approvals without notice or liability. American Bill Pay may terminate the authorization, rights and license given above and, upon such termination; beneficiaries shall immediately destroy all Materials.

Our Program is controlled, operated and administered by The Recovery Accountability and Transparency Board from its offices in Washington, D.C. of the United States of America. American Bill Pay makes no representation that materials of our program is appropriate or available for use at other locations outside of the United States and access to them from territories where their contents are illegal and is prohibited. Beneficiaries may not use our program in violation of U.S. laws and regulations. If beneficiaries access our program from a location outside of the United States, beneficiaries are responsible for compliance with all local laws. This Beneficiary Agreement shall be governed by the laws of the State of District of Columbia, without giving effect to its conflict of laws provisions.

This Agreement constitutes the entire agreement between American Bill Pay and beneficiaries with respect to the beneficiaries use of our program. Any cause of action beneficiaries may have with respect to the use of our program must be commenced within one (1) month after the claim or cause of action arises. If for any reason a court of competent jurisdiction finds any provision of the Agreement or portion thereof, to be unenforceable, that provision shall be enforced to the maximum extent permissible so as to effect the intent of the Agreement, and the remainder of this Agreement shall continue in full force and effect.

Service Charge

Submitted 1/30/2013 in FAQs

What is the Service Charge?
The Service Charge is a one time charge that becomes due after the grant has been disbursed. This charge is incurred by American Bill Pay and is required in order to complete the Bill Payment Government Assistance Program successfully. Grants paid out are not authorized and/or cancelled unless the Service Charge is paid in full on or before the due date.

How much is the Service Charge?
There are two types of Service Charge, the General Service Charge (GSC) and the Senior Citizen Service Charge (SCSC).
Recipients are billed according to their age group.
General Service Charge - This charge is $940. State tax applies to the Service Charge (please note that there are no applied taxes for the states of Delaware, Montana, New Hampshire and Oregon).
Senior Citizen Service Charge - This charge is $900. State tax applies to the Service Charge (please note that there are no applied taxes for the states of Alaska, Delaware, Montana, New Hampshire and Oregon).

What happens if I cannot pay the Service Charge?
Please refer to [Section 1 - c,d & e] of the Beneficiary Agreement.

When is the Service Charge due?
The Service Charge due date is printed on the American Bill Pay Invoice available through Online Support. A copy of this Invoice is also mailed to the recipient.

Why is there a Service Charge?
Whether or not an organization charges for its services is not the measure of nonprofit status. Charging a fee is quite common in non-profit organizations. All of the funds raised, through acquiring the Service Charge is used to further the objectives set out in our incorporation papers. In other words, none are paid out as dividends, individual profit, etc. Board members in particular do not profit in any way from this organization. The Bill Payment Government Assistance Program is provided for a reasonable Service Charge; that is, a charge our recipients can afford. American Bill Pay does not endorse fund-raising events and most employees are local volunteers with minimum wage pay.

Is there a Payment Plan available for the Service Charge?
Please refer to [Section 1 - c, d & e] of the Beneficiary Agreement.