Slow Pay AMCs
Slow pay reputation AMCs and Ponzi scheme payment process…
Through several of the ‘media sources’ I read recently, I’ve learned that “a particular AMC” based on the west coast has a slow pay reputation.
As so often happens with low echelon AMCs with few clients, when business slows down, their payment process becomes a Ponzi scheme. Ultimately they go out of business.
I currently have an outstanding report with that AMC, but the payment due date to me is March 7. So I’m respectfully withholding their name publicly from others, until and unless they don’t pay me on time.
Over past years I’ve written about how appraisers MUST keep close track of their submitted reports and payments due for them. Too many appraisers get busy and neglect to monitor their Accounts Payable for their business.
Even more sickening is appraisers who continue to accept assignments from slow pay (or no pay) AMCs, only to realize months and thousands of unpaid dollars later that getting paid may be problematic – or impossible in a worst-case situation where the AMC goes out of business with no notice.
Since seeing the various notices about “a particular AMC”, I sent the following notice to THREE of their company email addresses.
Our state has an AMC licensing law which facilitates this process easier than for those of you in states without such laws. But the type of message I wrote is something you can use to ‘knock ’em upside the head’ with your clipboard (or tablet if you are mobile!). ”Borrow” it if you like:
To whom it may concern at XYZ AMC – accounts payable:
I carefully monitor what’s happening in ‘appraisal world’ and I’m learning from many appraisers in various sources in the US that your company has delayed payments to appraisers after reports have been submitted.
WA State has a 45 day payment requirement “after completion of the assignment.” I have a report initially submitted to XYZ AMC on Jan. 13, with a subsequent correction done and re-submittal on 1/20. (Weekend days count.)
Due to the ambiguity of our law, I give XYZ AMC the benefit of the doubt to use 1/20/17 as the ‘completion date.’ That means we are now at 30 days, as of today, Feb. 20.
Therefore you are hereby instructed that the payment is DUE TO ME on/before March 7, 2017…not mailed that day.
You are hereby put on notice that if the payment does not arrive in my mailbox on/before 3/07/17, I will then take steps to submit a formal complaint with the AMC licensing/registration agency within our Department of Licensing. The intent will be to file a formal request with your bonding company to pay for the report fee. This message is copied to that DoL agency as a BCC.
Furthermore, if payment is not received properly, steps will be taken to warn other appraisers, both here in WA State, and around the US that XYZ AMC should not be trusted as a client.
Thank you for your attention to this matter and to comply with our AMC licensing law.