How Do These Guys Do It?

[mming]

For the umpteenth time over a period of years, we've been solicited by a firm that claims it can reunite terminated participants with their long-forgotten benefits that are currently held by "government agencies" and are just waiting to be picked up. We figured they're talking about the PBGC. Their literature does mention a hefty fee that will only be paid from the distributed benefit resulting in no "out of pocket cost to the participant". I'm guessing their fee isn't predicated on the participant signing a promise to pay after receiving a distribution, as the cost to chase down non-paying participants would be huge. Would they have a deal with an investment firm that'll pay them the fee once they get the investment? Even if they themselves are some kind of investment firm subject to SEC rules, how can they legally charge a fee that's far in excess of what similar firms charge for fees, commissions, etc.? Of course, their literature doesn't have a phone number.

[david rigby]

Do you really want a reply, or is this just a rant?

PBGC is probably not the only "gov'mint agency", but that may be irrelevant.

[namealreadyinuse]

They get you to sign a specifc power of attorney and act as your agent. They get the money and turn the net over to you. They provide a service and get paid whatever you negotiate with them. If you don't want to pay, either look for the money yourself or you'll get nothing.

[GBurns]

Who else offers such a service? Who charges less for the same service?

How did you compare the service, if you do not know where they are going to look for the money, nor even how they get paid?

[Guest mjb]

Ther is no need to use intermediaries who will sell access to your money for a fee. The PBGC has a web site where DB benefits for missing participants can be checked. Most states have a web site where abandoned property can be checked by name of the owner. e.g., Cal unclaimed property website which is holding $4.8B in property. You can google the sites under abandoned property.

[JanetM]

A fool and his money are soon parted................. is a cliche for a reason.

[jevd]

Here's a site that might help us all with scams.

http://www.consumer.gov/ncpw/index.html