“I was just notified by one of my brokers that they dealt with a (debt management company) in Markham and they dealt with them in September and apparently the (referral fee) cheque from them was bounced,” Brian Mathey of Verico
The Mortgage Professionals told MortgageBrokerNews.ca. “I’ve just discovered they have been chasing these people since October to get them to come clean.”
Mathey’s brokerage approached the company to consolidate debt for a client with the expectation of also receiving a referral fee. However, he still hasn’t received a cheque. It was the first time he had worked with the company.
“Basically we go to them with somebody who has a whole wack-load of debt, they negotiate with lenders for a settlement amount, we in turn do a refinance, and we pay those out and in the course of paying them out we give (the client) a better standing financially but we get paid a commission from them in what they charge,” Mathey said. “I phoned them last week and left a message for them and said, ‘guys, this is bad business and I suggest you give me a call so we can resolve this because if you don’t I think everybody should know about it.’”
The company’s website is aimed at consumers, though there is a password protected area for brokers.
One broker’s negative experience with a debt management company serves as a cautionary tale about the importance of vetting the organizations you do business with.