Advice Needed - my Former GA Will Not Stop

[disgruntledagent]

HI Forum Readers:

I'm a former captive life agent/investment advisor for a large mutual insurance company... I left about 2 years ago, and have been randomly getting letters from my general agent about debts I owe him. None of these debts are from charge backs. I have great relationships with all of my clients (current and former) whom I continue to advise on their policy's with this company and others. While I have advised them to cancel their policies when appropriate, none of that advice happened in the first year of my leaving this general agent (non-compete he decided to enforce on me despite neglecting to enforce on multiple coworkers who left previously and since my departure, but another story not applicable here).

Since this isn't a charge back, I don't think it should affect my ability to get appointed with other carriers. Since it's a debt he is claiming I owe him, what are his options? I do not agree with his tallying of these expenses and think he has continued to charge me for shared staff after I told him I was no longer participating in shared staff and has continued to charge me for rent after I told him I was leaving (it took him 2 months to release my FINRA registration).

Anyone have experience with this? I have asked him (through his CFO) to send a list of charges for my entire history with the agency (8 years), but have never received any docs that show more than a most recent month or two...

If he decides to get lawyers involved, would that be handled via mediation with FINRA? I'm thinking of filing a complaint with them anyway since he won't leave me alone... Thoughts? Advice?

Thank you!

Disgruntled Agent

 

[Josh]

If he thinks you owe him a debt then he can try to send it to collections. If that happens and you challenge it then it's actually going to have to go to some type of a court and a judgement will have to be made. At that point is where the ruin your credit/life stuff starts to happen, but before that it's just annoying.

From just a "being an adult" perspective I think you asking him for a complete breakdown of the expenses is more than reasonable. If there are some you agree to and some you don't, you could have a lawyer draft up an agreement and make an offer to settle all outstanding debts for the amount of $X. $X might be only a percentage of what he thinks you owe, but if you did agree to having some charges and you do rightfully owe him some money, the right thing to do is pay him.

I don't know much about FINRA and mediation with them, but this sounds more like a civil dispute than anything else. If FINRA is involved in settling civil disputes then it's on them, but the appropriate venue for this would be court (maybe even small claims depending on the amount).

Sucks man, good luck!

 

[DHK]

This has nothing to do with FINRA, so don't bother going down that route... unless they altered your U-5 or something over this.

Your first step is to have them validate the debt. You asked for that, but it was never produced.

Send a debt validation letter request via registered mail.

Sample Letter Requesting Collection Agency to Validate a Debt

Notice the last 3 parts:

If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.

I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls or correspondence sent to any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter.

This is an attempt to correct your records, any information obtained shall be used for that purpose.

While you are not dealing with a collection agency, you are dealing with someone who is trying to collect on a debt. Show them you mean business by sending an adjusted letter such as what is at the above link. In short, you're telling them to "put up or shut up".

You would need this in court anyway. And he who has the most documentation in the event of a court hearing... usually wins.

 

[Bob_The_Insurance_Guy]

If only there was an insurance agent on this forum, who was also well versed in the law...

I am dying to find out what your legal rights are.

God Bless...

 

[disgruntledagent]

thanks for your feedback!

 

[ltcadviser]

If only there was an insurance agent on this forum, who was also well versed in the law...

I am dying to find out what your legal rights are.

God Bless...

Lol, You rang Bob?

Jack Lenenberg, J.D.

 

[danerlavigne]

Try telling him that he is violating that Fair Debt Collection Practices Act and that he is harassing you. If he keeps doing it, you can threaten to sue him. There is a penalty each time he violates your rights.

https://www.ftc.gov/enforcement/rul...dings/fair-debt-collection-practices-act-text

 

[GreenSky]

If only there was an insurance agent on this forum, who was also well versed in the law...

I am dying to find out what your legal rights are.

God Bless...

He was banned several years ago (and several years after the a$$hole should have been banned).

Rick