|This sounded pretty bogus to me so I felt the need to share it,|
Got a call today from an outfit in Las Vegas (702-786-0229) trying to tell me about a better option for clients looking to do structured settlements. They said notaries are getting referral fees for sending them clients after signing structured settlement offers (they specifically mentioned JG Wentworth and Peachtree, so that's apparently who they are sniping deals from). He said they are able to get the clients up to 50% more than the big guys are offering, and the notary gets a piece of the difference.
Here's how it works: According to the guy I spoke to, the notary has the client sign all the paperwork. After the signing, the notary either gives the client the info for this outfit or gives the client info directly to the company.
According to this guy, the contract isn't legally binding until the client appears in court to have a judge sign off on the contract. So, during the time that the process is working, they shop the client on an auction site, giving other factoring companies the opportunity to bid on the deal.
I generally don't like structured settlements, but I'm not going to judge someone else's actions. I have a degree in finance, so I understand the time value of money, and I've never done one where I felt the customer was getting a good deal. So I think it's great that the customer has other options.
However, I can't violate the trust that my clients place in me when they send me out to meet with a client, and I am pretty disappointed to hear that other notaries would do so.