Posted by Judith/NY on 12/28/13 9:37am
Msg #497164

Debt Settlements

Is anybody doing these things? I've been turning them down because I don't see them as being a good financial product for the debtors, so I haven't been paying much attention to them. I got an automated telephone message yesterday about a signing in PA (I'm NOT a PA notary, but I live on the border between PA and NY so I get lots of requests for PA service). I ignored it. Then I got an e-mail from the SS (whom I've done work for before, and they're pretty reputable), asking if I was available to do a debt settlement in PA for what in this area is a very good fee. Are they just getting desperate because notaries are not taking these assignments, or is this normal for this type of assignment? I can't take the assignment in any event because it's not my state, but I was just curious about these assignments. Are they good products and I simply had a bad first experience?

Reply by Shoshana/AZ on 12/28/13 9:58am
Msg #497166

It's not in my business plan to be the debt settlement police and pass judgement on the customers. For some people that's the only way out. I know someone who is a very intelligent person who was very happy with this procedure.

Reply by MW/VA on 12/28/13 10:07am
Msg #497169

I don't get involved with these, because I don't know

which are legit & which are scams. I don't want to be involved in illegal activity.

Reply by Judith/NY on 12/28/13 10:21am
Msg #497170

Re: I dont get involved with these,

My feelings too. The first and only one I did, I was appalled at the non-refundable upfront fees that were being charged, the fact that there was no guarantee that the agency could "settle" anything at all, and if they did, the monthly servicing fees were outrageous! That particular debtor only had one loan outstanding, wasn't even late on her payment, and may have been feeling a pinch but her credit would definitely be adversely affected because of this action. She could have done much better by simply going to an ordinary consumer counselling agency. All I could do, of course, was stress to her that she had 3 days to discuss the arrangement with an attorney or accountant or a family member to make sure it was appropriate for her. I came away feeling as though I'd participated in something dirty, and told the SS that I would never accept another debt settlement assignment. I'm quite sure the fee that was offered was fairly normal for this area, so I'm pretty surprised by the fee that yesterday's e-mail was offering without even negotiation. I'm wondering whether enough of us are uncomfortable with these transactions and that's forcing them to offer much higher fees (which, of course, are another cost that the poor consumer will ultimately bear).

Reply by MW/VA on 12/29/13 11:21am
Msg #497216

The red flag is always the "non-refundable upfront fees".

That's what made those foreclosure rescue loan modification apps. illegal. Most states now have laws in place that make it illegal to charge upfront fees for a "promise of service".

Reply by Judith/NY on 12/30/13 12:01pm
Msg #497281

Re: The red flag is always the "non-refundable upfront fees".

What makes it the more aggregious is that they don't "promise" any service. The documents clearly state there is no guarantee that they can settle any debt. Which, to my mind, means kiss your deposit goodbye and don't expect them to make so much as a telephone call. Bad bad financial product!

Reply by Glenna Webb on 12/28/13 10:22am
Msg #497171

I have turned these down because the company wanted me to sign as a paralegal. I told them I wasn't a paralegal. They said that since I passed their test I was able to sign as one. No, I am still not a paralegal. There is one that wanted me to read a script which I refuse to do that one as well. It was giving legal advice and there is no way I am going to close to that. Very shady.

Reply by John/CT on 12/28/13 10:49am
Msg #497173

Likewise, I won't do these ... anymore ...for all the reasons give above plus: (1) In one case the service wanted my to use a script in which I was supposed to say I was their "representative", (2) The clients have my name and phone number (given during my introductary call), and I didn't want them to come back at me if something went wrong with the "deal" later on, and, (3) I just plain felt lousy afterwards because the whole experience left a bad taste in my mouth.

Reply by GOLDGIRL/CA on 12/28/13 11:33am
Msg #497176

No thanks

I did two of these back to back a looooong time ago before they were much on the radar. Debt settlements were new then, right at the start of the housing collapse. Immediately arousing my suspicions was the fact there was nothing to notarize. It became clear the debt settlement geniuses had figured out the best way to get their stuff signed was to use the good reputations of notaries to do their dirty work. If nothing needed to be notarized, then call a cab driver or use a grocery clerk. If I wasn't functioning as a notary, then why was I there? Scary! (Since then, I've read, POAs have been added to some pkgs.) It was also obvious to me they were preying on desperate people ... or people who needlessly bought into desperation as the economy tanked. Speaking of desperate, it also became apparent that our good ole true to form SSs were latching onto these outfits for business while the housing market was going down the drain. Another huge warning sign.

There has been MUCH previously posted about this subject over the years, so an orange button search will yield a lot of info ... none of it much good. Nonetheless, I suspect many many notaries are doing this no problem. Probably the same ones taking $75 (or less) for edocs.

In any case, if we notaries were truly concerned about honesty and signers not being gouged and taken advantage of and knowing what they're signing, etc, we wouldn't be dealing with many scoundrel lenders, so I don't see that being a major part of your decision. John/CT hit the nail on the head - you turn into their "representative" and in the eyes of their clients, you'll always be "one of them." No thanks. Is this why we got our commissions? To be used as spokespeople? At least with loan signings and GNW, it's widely known and made clear either before or at the signings, we're disinterested third parties.

Reply by Judith/NY on 12/28/13 12:25pm
Msg #497178

Re: No thanks

Where's the "Like" button? Well stated. They feel dirty because they're just one more way for lenders or creditors to take advantage of people who are struggling enough already. I just got a third e-mail from this source, and replied (again!) that I do not do debt settlements. In a way, I'm heartened that they keep asking because it means that the other 2-3 notaries in this area must also be turning them down.

Reply by HrdwrkrVA on 12/28/13 5:52pm
Msg #497184

4-5 yrs ago I did accepted one . Turns out the signer

worked at an Embassy, had stellar credit & only had a high credit card balance b/c of her exteensive international travel. She didn't apply for this - some snake called her! After asking her a couple of questions, we both smelled a rat! I told her I would rather waste my time & lose a signing fee, than to be a party to a scam! I strongly urged her to speak to her son (an accountant or something). She didn't sign, spoke to her son & called me back to thank me. That made me feel like I'd done a REAL public service; $75, $100, whatever - nothing can buy my SOUL! And, when you think about all the bgc's we have to go thru...SMH!!

Reply by 101livescan on 12/28/13 5:59pm
Msg #497186

I had a friend who asked me about debt settlement.

A long time friend of mine went through a divorce, had to live on her credit til she found work/salary. Meanwhile, CC balances went through the roof. Someone found her on the internet, was going to make everything so simple, only $75 for a notary to come out (yep, we're the credible ones!) to witness sign all the documents.

My friend called me up, I looked this person up in various places, found out she was tatted from head to toe, pierced everywhere too, purple hair, big silicon frontage. I called my friend up, send her the picture (a Las Vegas pole dancer by night, a debt settlement agent by day), and said, "is this the kind of person you want to have your SSN and other information about you, really?"

End of story.

I won't do that work either. It's completely lacking in integrity and credibility. I don't need $75 that bad, ever.

Reply by jnew on 12/30/13 1:24pm
Msg #497286

It looks as if they want a person to represent that they are giving a person proper legal advice as a "representative", "paralegal" or whatever they want to call it. I think that barring some disclosure agreement that the parties sign, the loan signing professional is on the hook for giving legal advice and may be subject to a complaint. You also have to figure that you are the only local face they will see and if they complain to a local tv station or newspaper, you can have a public relations disaster for your company. Think twice before saying yes to these.

Reply by MAC/WA on 12/30/13 3:00pm
Msg #497296

Well, I hope you all feel "cleaner" when you sign the Code

of Conduct and agree to use the Closing Script that says,

"Section 1 -- Introduction

"Hell, my name is (NAME) and I am here on behalf of (TITLE AND CLOSING COMPANY), the title and closing company working with (LENDER) to conduct your loan signing....."