Great Lead Source or Scam? What Do You Think?

[warnerins]

Hi Forum,

Here is something interesting. I received a phone call yesterday from a Brad Moore. He introduced himself as a representative from (I think) City Wide Mortgage. He said that they were looking for a local agent that they could send all of their clients to for home owners insurance and wanted to know how quickly I could get them quotes and bind coverage so that they could process their loans.

I gave him some information and he said that we would be a good fit and that they would probably be able to send me at least three clients a day. Wow!! Three new clients a day from a local mortgage company. OK. Bring it on.

Then came the sales pitch........ He said that they would charge me 13 dollars everytime that they sent me a lead and that I would be an exclusive agent for NM. 13 X 3 leads a day at 825 a month.

The contract that they sent me has this guarantee:
100% Replacement if you don't write the policy. 100% exclusive to the above client.
In order to receive replacements, I must logon and request replacements through the CLG online system. I am joining CLG multi-month automatic application delivery program and hereby authorize CLG to charge my Checking Account the amount on or about the same day of every month as my order date, unless I notify CLG in writing or via fax at 888-814-8895 with in at least 7 business days prior to the next order date. In return CLG will issue the number of monthly applications to my CLG account. All charges will be shown in your statement as CLG.

CLG
Office: 888-814-8897 Fax: 888-814-8895
Address: 6038 Tampa Ave #410 Tarzana, CA 91356
Hours: Monday – Friday 8am - 4pm

Has anybody ever heard of CLG? Is this a scam? Why is this mortgage company acting as a lead service (if they are a mortgage company, can they really charge an agent to send them their clients) or are they a lead service misrepresenting themselves as a mortgage lender? Why would I sign a contract without running it past the Forum?

If you are interested in investigating this offer on your own, I got this offer from Brad Moore at [email protected]

 

[Crabcake Johnny]

Whatever conclusion your reach, this is a perfect example of when a separate debit card works well.

Make sure they don't want a lot up front and give it a shot - keep a very low balance on the card - like $20. If you find it's a scam they will not be able to charge your card.

 

[warnerins]

He is supposed to call me this morning and go over more details. When he called yesterday I was in the middle of bombs exploding all over the office and couldn't give it the attention that it may deserve.

Will let you al know.

 

[moonlightandmargaritas]

Be careful. Their website is "under construction". Not a good sign.

 

[insuranceexec]

Whatever conclusion your reach, this is a perfect example of when a separate debit card works well.

Make sure they don't want a lot up front and give it a shot - keep a very low balance on the card - like $20. If you find it's a scam they will not be able to charge your card.

Very good advice!

 

[warnerins]

I noticed the website thing and had the same reservations.

 

[Crabcake Johnny]

Yeah....those debit cards work well for "billing errors" - ooops! We charged your card for another order? Sorry about that.

Yeah, tough to pull that off when I have $2.85 on my card until I move money onto it for regular billing.

 

[FL P&C Broker]

Is it a lead or a referral?

 

[The Man]

I also spoke with this company very recently. I also was a great fit, I suppose it was because I answered my phone.

I did not do it. I asked for a referral of an agent who was using the system. I called the agent they gave me, I think it may have been the sales associates brother. My questions were answered somewhat.

I spoke with the rep again and after asking more questions they hung up on me. I think they were tired of me actually wanting to know how they work.

The whole thing was sketchy. One rep was using cheesy canned sales lines on me and he was supposed to be the sales manager. I told him I wanted to think about it over the weekend. On Monday another rep called and they said they were ready to start. I told them I had not yet decided and had more questions. When I asked about pricing it was suddenly going to be more expensive. Then I started asking some simple questions about the delivery system and "guaranteed" reimbursement. Thats when I was hung up on.
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Is it a lead or a referral?

The system is as follows:

When someone fills out a mortgage app there is a box asking if they want a mortgage insurance referral. If the box is marked 'yes', the lead is sold for $13.00.

This is what I gathered from my conversations.

The sales rep take a line that they are really just trying to help the customers and the $13.00 is a processing fee for the man power it takes to get you the information. This is obviously crap. They have a system you log into to get the lead information. They would be better off just being truthful in advertising. Admit they are just selling leads and move on. The fake approach assumes insurance people are stupid.

 

[warnerins]

Hey Man,

Thanks for the info on this. I emailed back the rep today because he never called me back (as was promised) and asked tons of questions. All I got was a contract for 825 commitment per month and a return fax number.
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By the way..... If they will give you the run around while you are maybe interested in signing up. Can you imagine the runaround when you want to end the contract?