This is exactly why I have never taken a debt consolidation or the likes. You disengage your notary hat and wear a representative hat. Hope it turns out in your favor. Good 
so sorry i had those same jobs come to me and once I saw they wanted me to read their prepared speech, I told them this was out of my scope of practice.
I don’t really have any fear that the Attorney General is coming after me personally, and I will not notify my E&O insurers. The attorneys were talking freely in front of me- about whether the marked exhibits would go with the court reporter to be attached to the transcript - but they also told me about several other notary/witnesses they were deposing over a couple days, and also remarked that one guy had a TON of exhibits to copy. They were just connecting the dots hoping to prove how these poor people in serious debt came to sign and commit themselves to agreements with lawyers seemingly helping their debt problems when that was clearly not the case. Hence the Consumer Protection Bureau bringing the action on behalf of the consumers.
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Many years ago during the mortgage and lending crisis (2007-08) there were many (too many) ‘pop up’ companies hiring (through signing services) signing agents to facilitate consumer signings for ‘debt relief and loan modifications’. In the beginning most companies supposedly ‘law firms’ were later identified as ‘predatory firms’ coercing vulnerable people into accepting loan mod agreements and debt forgiveness.This of course was before the CFPB rules were established and so like a wildfire this practice went out of control. The first time I was offered this type of signing, I withdrew from the assignment right at the table, I kid you not, it was my ‘spiritual awakening’ that made me withdraw. The situation goes like this: The signer had questions relative to the documents so I redirected them back to the law firm for clarification while at the table. What I observed and witnessed was appalling, as I do with all my calls at the signing table I had the phone on speaker and the ‘so called lawyers’ were literally trying to force the signer to sign additionally, I was to collect a check for an amount over $5000. After the conversation between the signer and firm I said to the ‘signer’ “ I am not going to tell you to sign or not to sign these documents that is your choice, but what I will tell you is that you will not be signing with me so with all due respect, please accept my apology and I will make my exit and notify my hiring agency”. I notified the hiring agency they said thank you for letting us know, and said they would still pay me for the trip etc. Approximately a month later, I got a phone call from the hiring agency, letting me know that there was a major crack down on that Law Firm and others for predatory practices. My heart sank as I imagined had I stayed and carried out that particular signing with no ill intentions, I would’ve gotten caught up in that mess. The lesson learned from that experience was that I would NEVER accept another request for service with those type of settlement service providers, and have never since. My late father, once said to me, “all money is not good money”. Believe it…
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From an “Inside Mortgage Finance” newsletter received 2/9/24:
The Consumer Financial Protection Bureau reached a settlement tied to a complaint that the regulator brought against Consumer First Legal Group in 2014, alleging that the firm was running a foreclosure relief scam. The settlement requires the defendants to pay $10.9 million in consumer redress and a $1.1 million penalty. Those amounts are well below prior rulings against the defendants, who were able to whittle down the penalties through appeals.
Do not know if this is related to original post or not.
Scott;
When I talk about attorney ethics, I’m not asserting that all lawyers comply with the rules.
Rather, most attorneys realize that serious ethical violations can be reason for license suspension and/or disbarrment, causing them to lose income. Even more to the point, serious ethical violations (e.g.: abuse of client funds held in trust/IOLA/IOLTA) can result in a complimentary stay of 5 to 15 in the graybar hotel (Sing Sing holds a couple of former lawyers).
HWB
I think a major reason people fall for these debt settlement scams is that since attorneys are involved and representing them, they believe it must be okay. I have worked with allot of attorneys over the years and most follow the rules, but there are still allot of attorneys who cross the line everyday so to me attorneys and ethics is an oxymoron.
Scott;
I’m gonna correct you there…
The reason that a lot of people fall for these scams is that they’re desperate. They’re looking for any way out and not necessarily thinking clearly. Anyone who offers a solution to ‘make the pain go away’, real or otherwise, will be given full attention. The scam perps are depending upon this.
In some cases, just calling the creditors to seek better terms may be helpful.
I’ve seen many individuals who were crushed by debt terrified of bankruptcy; yet, those who went through the process almost invariably emerge from it better off than they went in.
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People are desperate and when an attorney comes knocking and offers a bogus scam they believe it is real because it’s an attorney. People would be much better off filing bankruptcy as it only cost $500 bucks if you do it yourself. These debt settlements only save the debtor 0% to 20% of the gross debt whereas bankruptcy would save them 70% to 80%. Either way, bankruptcy or debt settlement your credit score is very low for several years.
Exactly.
But I’ve seen debtors emerge from bankruptcy being issued unsecured credit cards and even mortgages/refi’s within a year. After all, a debtor is blocked from filing a subsequent Chapter 7 for 8 years after the first onett (a subsequent Chapter 13 is allowed after 4 years).
I recommend those considering bankruptcy use an attorney, instead of ‘DIY’, though. There’s lots of “gotcha’s”, especially if the debtor has property and other things to protect.
But the taking advantage of somebody in desperate shape is the top reason I will never even consider debt settlements (even before personal legal jeopardy).
HWB.
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