Posted by jrs0628/NC on 12/14/07 9:04pm
Msg #226123

Do you think this is unfair?

It seems that I have been having more and more signing companies disappear on me without paying their bill. So for the past month when a new SS calls me that I have never worked with or I can't find any information on, I give them a proposition up front.

I will be more than happy to do the signing for them, however, after the signing is complete, they must give me their credit card information and I will charge their credit card for the signing. I'll even fax back a copy to them to prove it was signed. If they don't comply, I simply shred the docs and write off the mileage. I'm sure the lender would kill them if I shred them -- but hey, they agreed to it up front.

After I do the first signing for them, I don't have a problem with taking a check from then on. I own a small business as well so I already have an active credit card terminal. If they try and do a charge back, I'll just show the information I have on the order to prove it was a valid sale. Bank of America (they have my CC merchant account) has always taken email "orders" as a proof of valid sale on charge backs through my small business -- even though they are not signed.

So far I've had two companies say no way, another that said no at first and eventually called back, and one that said yes right from the start.

I performed the service and I don't think it's unfair to hold the packet that I printed "hostage" until I am paid for my services. I don't see a problem with it, but I was wondering what everyone else thinks?

Reply by GA/Atty on 12/14/07 9:18pm
Msg #226126

It may be fair as between you and the signing service, but it seems really unfair to the borrower.

Reply by GF_CA on 12/14/07 9:18pm
Msg #226127

I think that you will not recieve much business n/m

Reply by DianeCipa on 12/14/07 9:36pm
Msg #226140

Has anyone looked into accepting faxed checks?

I'm thinking it's an ACH transfer. I have some customers who want to use our Choose & Save program but don't want to use a credit card on line. This conversation just made me think that might be a good alternative.

Reply by Roger_OH on 12/14/07 11:59pm
Msg #226165

You are flirting with SERIOUS legal ramifications...

Your issue is with the company hiring you, NOT the borrowers, who had no say in any agreement between you and the hiring company.

You CANNOT hold the docs hostage; if the borrowers were to lose their date sensitive rate lock, or possibly even their whole deal because of your unprofessional actions, YOU are the one they will come after.

As far as charging up front, good luck with that. Most all companies will just move down to the next notary on the list.

Reply by Pat/IL on 12/15/07 1:17am
Msg #226170

Re: You are flirting with my wife!

Well said, Roger. The parties to the loan transaction are outside the scope of the poster's agreement with the signing company. Besides, it's just not nice to shred a borrower's loan documents. Legal or business consequences aside, though, it's good to see people thinking of new ideas to combat the deadbeats.

Reply by CF on 12/15/07 7:59am
Msg #226178

Good way to leverage!

I think that you could threaten to do it. I, myself, would never really do it. However, I am not sure what the legal ramifications would be...probably go against your E & O in some way. The loan did not fund b/c of your mistake of shredding the docs....sounds like an E & O claim to me. If you are using this tactic....then it sounds like you dont really have a relationship with the companies that you are working for. So- if you dont care and they are 1 and 2 per year companes- I may use it. However, I dont take jobs that I fear will not pay. I cant work for free- and in 4 years I have been stiffed by 1 job! I think that is pretty good. I turn down jobs from companies that were slow payers too- I need my money by Net 30- thanks!

Reply by WDMD on 12/15/07 8:11am
Msg #226179

Re: Good way to leverage!

"The loan did not fund b/c of your mistake of shredding the docs....sounds like an E & O claim to me."

Assuming that the notary would even have the right type of E&O, would it even cover a deliberate act?

Reply by Roger_OH on 12/15/07 12:51pm
Msg #226203

Re: Good way to leverage - NOT!

Your E&O covers ONLY notarial acts; covers nothing to do with the signing agent role. In any event, it certainly wouldn't cover a willful act of negligence like shredding someone's docs!
You'd likely be facing a civil action potentially from the borrowers, TC, and the lender!

Reply by WDMD on 12/15/07 12:57pm
Msg #226205

Re: Good way to leverage - NOT!

"Your E&O covers ONLY notarial acts; covers nothing to do with the signing agent role. In any event, it certainly wouldn't cover a willful act of negligence like shredding someone's docs!
You'd likely be facing a civil action potentially from the borrowers, TC, and the lender!"

I guess I should have been more blunt. I was trying to be diplomatic in my response. LOL

Reply by CF on 12/15/07 1:10pm
Msg #226208

Re: Good way to leverage - NOT!

You really dont think that you would get payment posted to a paypal account if you threatened to shred them? I think that they would be willing to pay to get their docs back. However, a paypal payment can be reversed or cancelled. Like I said....I would not do it- but it may help someone else out. I dont work for "dead beat" companies that dont pay in the first place. As for the E & O- not really clear what that is good for and what are the chances that someone will put a claim against it???

Reply by Sylvia_FL on 12/15/07 1:02pm
Msg #226207

" I don't think it's unfair to hold the packet that I printed "hostage""

I don't think a court will agree with you when the borrower sues you for not getting his/her loan and wants you to pay the amount he/she is out!