Posted by obbie on 2/21/11 11:54am
Msg #373530

debt settlement

I have been receiving more and more calls to do debt settlement. I got a call from a company friday and I expressed my concerns for the client and for myself. I was assured that I could represent myself as an independent notary (not a law firm rep) and that I could question the client as to their understanding of the process and their desire to proceed. What are your thoughts about debt settlement? The client assured me they understood and have the intention to proceed with the process. Since they are determined to go through with it am I helping them or should I still avoid this type of work?

Reply by Glenn Strickler on 2/21/11 12:18pm
Msg #373531

I have done this in the past, but I insist that we have the debt settlement company representative on speakerphone to answer any questions that come up as I collect the signatures. I have found that the clients seem to be well versed on the process before I get there, but questions do come up that I can't answer.

Reply by Mary Ellen Elmore on 2/21/11 12:21pm
Msg #373532

I have a friend that does them and I am doing one this week.

I have a script to read word for word--
I had to watch a video presentation by an attorney that explained everything and how to do it all so that I do not place myself in a bad position--

I am required to not answer any questions but have one of their reps on the phone to answer all questions.

My only purpose and role is to show them where to sign and give them an RTC.

Reply by Glenn Strickler on 2/21/11 12:33pm
Msg #373537

Yes, some debt settlement companies actually have you download a video to your laptop to play for the client before signing.
It's not up to you to answer questions or even determine if the client understands the process. All the ones I have done, the company has gone out of their way to make sure the client understands. We just collect the signatures.

Reply by obbie on 2/21/11 12:46pm
Msg #373539

thank you for the input, how much do you typically make for one of these?

Reply by Glenn Strickler on 2/21/11 1:33pm
Msg #373546

I negotiate it according to the same criteria that applies to loans. Pages, distance etc.

Typically, it's not as much work as an average loan. But like anything else, it would depend on the company how heavy the work load is. And every company has their own rules. It's not any big deal for me to take my laptop along and play the video. In fact, it simplifies things.

I hesitate to state a dollar number on what I get for this type of work. It's will vary according to your business model, and how much work you perceive it to be. If you haven't done any, see what the company is willing to pay, do one, and then adjust the price according to your business model. If you don't have much competition, you might be able to get more than in an area that is saturated with notaries.

Reply by Brooke Squyres on 2/21/11 1:50pm
Msg #373556

This is the first positive feedback I have heard

about this kind of work. I had three different companies call me in one day last week. I have been telling them all a resolute "no", from all the feedback I have read on this board. Anyone else care to comment? Are you really NOT part of the process, in legal terms, "watching them sign" and not notarizing anything? Is the debt resolution a scam to the consumer, or is it actually helpful?
I appreciate any input. With things slowing down, it would be nice to have a fill-in sideline

Reply by jojo_MN on 2/21/11 1:58pm
Msg #373561

Re: This is the first positive feedback I have heard

If I were you, I would check with your state Secretary of State or Dept. of Commerce. Many states require that any debt settlement companies be licensed in that state to do business even if they are a law firm. I was told that if there were an issue with the procedure (i.e. it's a scam), I could be held liable as an accomplice. For this reason, I always check to see if the company is licensed to do business in the state before I will accept the assignment.

Reply by ReneeK_MI on 2/22/11 6:01am
Msg #373628

since you asked, my own decision & reasons ...

Way back in time, I used to process loans and helped people get their financial ducks in a row when they couldn't qualify. That was the beginning of learning how that whole world turns. Some things have changed, but not for the better as far as I have seen.

IMO&E, while you can't save people from themselves - debt settlement companies aren't doing ANYTHING that people can't do for themselves, unless things are so far gone that they would be better served by a bk atty (which settlement companies are not). Statistically (per court case evidence), only about 1% of those who contract with a "for profit" debt settlement company ever complete the program, yet the fees charged are taken (typically paid in installments during the first few months, usually prior to any actual settlements have been reached - and then, there are additional fees & consequences to actual settlements). The false-leading advertisements don't consider the drop-outs when they state their debt-reduction rates.

There are non-profits who are there to help those who need assistance - and certainly it's understandable that such problems can be overwhelming.

There is one advantage to hiring a debt settlement ATTORNEY (only an attorney) - once a debtor has legal counsel, creditors are prohibited from contacting the debtor directly. I guess how much you are willing to pay just to stop the collection calls is up to you - certainly cheaper to change your number, IMO (while working your settlements yourself, of course).

Just as we saw with the modification scams, the more desperate people are, and the more there are desperate people - the more others try to glean off that misery.

Jojo makes a very, very crucial point. My decision is to not even be a part of the question of the liabilities. Further, I have an ethical issue with the 'emotional engagement' factor which is, IMO, the basis for the debt settlement companies wanting a warm body to present their pitch.

Reply by JanetK_CA on 2/22/11 5:31pm
Msg #373721

Re: since you asked, my own decision & reasons ...

Very well said, Renee! And I couldn't agree more.

"Further, I have an ethical issue with the 'emotional engagement' factor which is, IMO, the basis for the debt settlement companies wanting a warm body to present their pitch."

Plus, if they tell the signer that the "warm body" is a Notary Public, there's an inference of credibility by association which doesn't pass the smell test, either. It just doesn't feel right to me.

Reply by MikeC/NY on 2/23/11 10:59pm
Msg #373944

Re: since you asked, my own decision & reasons ...

"only about 1% of those who contract with a "for profit" debt settlement company ever complete the program, yet the fees charged are taken (typically paid in installments during the first few months, usually prior to any actual settlements have been reached - and then, there are additional fees & consequences to actual settlements)."

FTC rules changed in Oct 2010 - for-profit debt settlement firms are now prohibited from collecting fees up front. They have to actually DO something before they can collect a fee...

http://www.ftc.gov/opa/2010/07/tsr.shtm

Reply by rolomia on 3/8/11 1:02am
Msg #375402

Re: This is the first positive feedback I have heard

I have successfully utilized the services of a debt settlement company. There are both good and bad companies serving this much-misunderstood process. Unfortunately, ignorant know-it-alls who offer their unhelpful, uninformed opinions seem to dominate this and other forums with negative assumptions that have no basis in reality other than their hearsay. Thanks but no thanks! If you have something constructive to add to this topic, by all means, share your comments. Otherwise, keep your big mouth shut!

Reply by Veronica Sermons on 4/6/11 8:51pm
Msg #378984

Re: This is the first positive feedback I have heard

Rolomia, thank you well said! I've done my home work and have asked clients to do the same. So far no problems here.