Posted by 101livescan on 8/26/10 12:42pm
Msg #350560
Deadbeat Collection Letter
I've got a crazy day of signings for the cream of the crop lender/title companies in my area. I rarely have to use my famous deadbeat letter. For those of you who from time to time need a powerful collection tool, I offer my carefully crafted letter as I know there are companies out there who think they don't have to pay us to be in this wacky business.
HAPPY TRAILS.....I'm off for my cruise next Tuesday and taking that day off. Monday is the last day of work for me this month, reeturning on September 12 with a vengeance!
DEADBEAT COMPANY COLLECTION LETTER
Here is a letter you can send companies who haven’t paid you for (60) or more days, ON YOUR LETTERHEAD. You want to be as professional as possible, and this letter documents your collection efforts for building your case for collection efforts with a number of entities (title, Secretary of State, Attorney General, Department of Corporations, BBB, Small Claims Division of Superior Court, bad debt collections agency), title and escrow and the lender/loan officer.
Date:
Deadbeat Company
123 Main Street
Santa Ana, CA 92701
Dear (Deadbeat Company),
On ___________, 20__, in good faith, I performed a signing for you and your client, ____________ for the (borrower’s name) for the property at ___________________________, Escrow No. __________. These documents signed on __________, and the escrow closed on _______________. The loan has funded, BUT I have not been paid for my diligence, upfront expenses, and hard work to make this signing/escrow close in a timely manner. I therefore must remind you of the following:
I am a sworn public official from the State of ________. When a fraud is perpetrated in the course of my official duties as a notary officiate, I feel compelled to take any and all of the following legal remedies at my disposal to collect the money your company owes me, including, but not limited to:
a. Notify the State Attorney General of the details and circumstances of the occurrence.
b. Notify the Secretary of State of ________ to investigate the matter of whether the Lender/Title Company should maintain their license to do business in the state. (Provide the same details to the Secretary of State and to the Department of Corporations which regulates Title/Escrow Companies.)
c. Notify other notaries public at large of the details of non-payment.
d. Contact the Lender/Title Company
e. Register the details of the occurrence with the BBB
f. Contact the borrower
g. File a claim in Small Claims Division of county where the closing was conducted and/or pursue with a collection agency for payment recovery (a copy of the court filing will be faxed to you upon filing with the courts as well as to be served on you by an officer of the court).
The above actions as outlined above will commence on MONTH, DAY, 20__ if our office does not receive payment before that date. Please remit payment immediately to avoid any and all of the above next steps to collect to:
Name
Address
City, State, Zip
Tele/Fax
Cordially,
Your Name.
FURTHER COLLECTION INSTRUCTIONS: You need to enter your mailing address. The date used was (5) days from the date of the email/letter. You need to send this by certified mail as well as to email and fax it over every day so as to annoy the heck out of them. Also, cc: an attorney at the bottom of the letter.
Also fax this over periodically to the companies that owe you. You can scan it and email it as well.
Wishing you successful fee recovery!
| Reply by Linda_H/FL on 8/26/10 12:53pm
Msg #350561
Very similar to another template offered elsewhere...
And I'd remove the part about contacting the borrower - we all kno they're out of it.
| Reply by 101livescan on 8/26/10 12:59pm
Msg #350562
This business is all about referrals. My town is big for our region, it is a very small world here. I'm signing the same borrowers I've signed for 10 years. If any of them were working with a company that did not pay the notary, while everyone else got paid, you can be sure the escrow company and loan officer would be interested in knowing. Therefore, i maintain it doesn't hurt at all the include the borrower.
| Reply by Linda_H/FL on 8/26/10 1:21pm
Msg #350571
I disagree....
The borrower did not contract our services - title or SS did - borrower has paid all fees due for this signing - they are out of the loop completely.
Now, if you want to notify LO, lender, title (if deadbeat is an SS) then fine...but IMO borrowers should not be involved at all...
| Reply by DD/OR on 8/26/10 1:26pm
Msg #350575
Re: I disagree....
Linda, I don't agree with you. The borrower is not out of the loop. He is in the loop until we get paid. For all we know he may not even have paid for our service. I have seen some settlement statements that had no fee for the notary or SS.
| Reply by Linda_H/FL on 8/26/10 1:28pm
Msg #350576
Notary fees/our fees are part and parcel of the
settlement services fees - not always set out separately on the HUD...
If the loan has funded the borrowers are out of it - they've paid their part...why should they be held liable to pay twice?? Your contract is with the SS or title - not the borrowers.
| Reply by JanetK_CA on 8/26/10 2:44pm
Msg #350593
Re: Notary fees/our fees are part and parcel of the
I think the difference is in trying to collect from the borrowers vs. making them aware of what the situation is. This can be especially critical when the borrower is someone who may be dealing with multiple properties or transactions over a period of time, as Cheryl referred to, or who knows lots of people. They may be able to apply a little leverage, although, just the idea of all those people potentially being notified may be enough to get the delinquent party to pay up before it gets to that point. And I think that's the whole idea.
Personally, I think this is a great letter that I wouldn't hesitate to use - and I may have an opportunity to do just that coming up...
| Reply by DD/OR on 8/26/10 1:22pm
Msg #350572
101, I agree with you. I'm going to fill out some Small Claims forms and present them to all parties involved including the borrowers. One time I had trouble collecting and the borrower paid me. So it's worth a try. After all, we did the work for the borrower as well as all the rest. Then the borrower can take it up with the Title co.
| Reply by ReneeK_MI on 8/26/10 1:23pm
Msg #350573
A synopsis of small business debt collection laws ...
http://www.nationalbusiness.org/nbaweb/Newsletter2005/2092.htm
Earlier I referred to increasing our business & professional acumen. I think sometimes it's better to go outside our small circle to gain a broader knowledge, and THEN apply it specifically.
Borrowers, by the way, are protected by the Consumer Protection Act. Not only are they NOT our clients, nor do they have any contract with us, they are heavily protected by this Federal law - and if anyone wanted to push the issue, there are parts of the GLBA that could be called into play.
| Reply by DD/OR on 8/26/10 1:29pm
Msg #350577
Re: A synopsis of small business debt collection laws ...
Reneek, I guess this law would also apply to the Signing Services, would it not?
| Reply by ReneeK_MI on 8/27/10 6:12am
Msg #350654
Of course it does, but I don't get your point, DD. n/m
| Reply by Linda_H/FL on 8/26/10 1:30pm
Msg #350578
And while I'm in the middle of getting myself in neck deep
"For those of you who from time to time need a powerful collection tool, I offer my carefully crafted letter "
Cheryl...you surprise me - this is an exact copy and paste of a template from another website...I'm surprised you're calling it YOUR carefully crafted letter...unless they copied it from you?
Who's plagiarizing who?
| Reply by MistarellaFL on 8/26/10 1:37pm
Msg #350580
While I agree the brw's aren't liable to us directly
The threat can certainly go a long way.
And, if the brws and I *know* one another, I believe their voices could help us collect from
a third party.
Imagine doing a signing for your friend, and the SS that hired you won't pay.
I wouldn't have any problem asking my friend the brw contact her LO, TC, broker, etc.
Not legal advice, yada yada yada
Just my piddly .02
| Reply by Linda Juenger on 8/26/10 2:44pm
Msg #350592
Re: While I agree the brw's aren't liable to us directly
While I agree almost 100% of the time NOT to contact borrowers, I actually did just that this past year.
I did a personal loan closing for a broker. She refinanced through the company she works for. I was hired by title and when they did not pay me, I contacted her to let her know that the company she works for is using a title company that does not pay its notaries. She was astounded. I told her upfront that I was not asking her to pay me and would not accept payment from her, but to please pass this onto the higher ups in her company. It worked. I was paid for all 4 closings I did for this title company in 3 days with 1 check. I also got a call from management of the firm and they wanted to know all the details.
| Reply by 101livescan on 8/26/10 2:49pm
Msg #350595
Re: And while I'm in the middle of getting myself in neck deep
ha,ha, I'm famous for my letter, and it was first published in a book in 2003.
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