Phyllis Christos
Expert
- 49
Colorado Bankers (CB Life)...
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Phyllis Christos
Expert
- 49
We have a 400 thousand dollar fixed rate fixed term annuity with CBL that we were supposed to be able to “cash out” in March of 2023.......(we opened it in March 2018)
We are terrified...!!
Would love to connect with others in the same boat.
Our story:
We had a CD with Citizens bank that matured in March 2018.
The cd rates were around 2% at the time... and we were going to walk with our 400 grand and go find the highest cd rate we could find.
The scoundrel at our local Citizens branch in Boston aggressively pursued us and finally convinced us to consider a CBL 5 year fixed rate fixed term annuity at 3.6% interest.
He told us as long as we had BOTH our names listed on the account that we would be covered by the Mass Guaranty Association for up to 500 grand.... in the unlikely event of bankruptcy....
“Each owner is covered for up to 250 grand”
Yea right....
We’ve since learned the Citizens guy lied to us... The Mass Guaranty Association will cover up to 250 grand TOTAL, doesn’t matter how many names are on the contract. That was a bunch of crap from Citizens!
We filed a formal complaint with Citizens against the Associate who lied to us...and Citizens is taking zero responsibility for their guy lying to us.
Only a fool would put 150 thousand of their money at risk like that! (Plus the 77 grand in interest over 5 years)
The Citizens Guy explicitly pointed us to the wording on the Mass Guaranty website before we signed on the dotted line in March of 2018...but the problem is he didn’t understand the wording himself...or knew it was vague...and we didn’t do enough homework. We should have called the Mass Guaranty Association ourselves.
We trusted Citizens Bank...HUGE mistake!!
We are terrified...!!
Would love to connect with others in the same boat.
Our story:
We had a CD with Citizens bank that matured in March 2018.
The cd rates were around 2% at the time... and we were going to walk with our 400 grand and go find the highest cd rate we could find.
The scoundrel at our local Citizens branch in Boston aggressively pursued us and finally convinced us to consider a CBL 5 year fixed rate fixed term annuity at 3.6% interest.
He told us as long as we had BOTH our names listed on the account that we would be covered by the Mass Guaranty Association for up to 500 grand.... in the unlikely event of bankruptcy....
“Each owner is covered for up to 250 grand”
Yea right....
We’ve since learned the Citizens guy lied to us... The Mass Guaranty Association will cover up to 250 grand TOTAL, doesn’t matter how many names are on the contract. That was a bunch of crap from Citizens!
We filed a formal complaint with Citizens against the Associate who lied to us...and Citizens is taking zero responsibility for their guy lying to us.
Only a fool would put 150 thousand of their money at risk like that! (Plus the 77 grand in interest over 5 years)
The Citizens Guy explicitly pointed us to the wording on the Mass Guaranty website before we signed on the dotted line in March of 2018...but the problem is he didn’t understand the wording himself...or knew it was vague...and we didn’t do enough homework. We should have called the Mass Guaranty Association ourselves.
We trusted Citizens Bank...HUGE mistake!!
- 4,920
Have you contacted an attorney?
Phyllis Christos
Expert
- 49
Yes, but they said we have a 50 50 shot at “winning” and it will cost us close to 70 grand....
- 17,053
If you can prove he told you that you would be covered by that you make a claim against the agent’s E&O insurance. Agents can only promise that your policy is guaranteed up to the ability of the insurance company’s ability to pay. Anything beyond that is NOT a part of your policy and can not be promised in order to make a sale.
I would find a lawyer that understands insurance law. Your agent (if what you say is correct) was using a method that agents are expressly not allowed to do (offering promises beyond what is in your contract) to make a sale. He is required to carry a minimum of 2-million dollars if errors and omissions insurance for this exact reason. I would definitely fight it.
Most attorneys know nothing about insurance and will not take your case. You have to search harder for one that fights insurance companies and wins. But you were wronged by the agent not the insurance company (my opinion and I’m not a lawyer) and I think that would be much easier to win.
Phyllis Christos
Expert
- 49
Thanks so much. Will be searching for such a lawyer in March of 2023....but I guess right now all hands are tied. Problem is PROVING what this guy at Citizens did. It seems to be his word against ours. Again...never having been "investors"/risk takers...only CD people...we would have NEVER put 150 grand plus all our interest in jeopardy...It's pure insanity! Looking back...hindsight... we kick ourselves 100 times a day for not calling that Mass Guaranty Association ourselves.
We're just regular working people our whole lives...trying to save our money conservatively for retirement!
We're just regular working people our whole lives...trying to save our money conservatively for retirement!
- 4,920
The biggest issue is how long this is taking & could be a ton longer. A lawsuit today against agent is difficult because it will be years before they know if they lost anything at all financially. Plus, some states have statute of limitations, do they sue the agent now and or CBL or wait to find out if somehoe they get all of their money in the end
- 10,725
If they are over the SGA limit. At this point, dont we already know they lost that amount?
I thought they already said they are paying claims up to the SGA limits.
Last edited:
- 10,725
That is the issue. Proving what he said. You need an email or something with him saying that or admitting that he said it.
However, what licensing did he have? Was this agent also an Advisor working for you as a Fiduciary? If so, then you would have an excellent case against them. Not in 2023, but tomorrow.
If you can prove that an agent said that, regardless of fiduciary status. You would have a case against them for the amounts over the SGA limits.
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Most fixed annuities are not a risky investment. However, you have to pay attention to the financial ratings of carriers. Its like a Bond, anything below an A is considered "junk" status and very risky.
Maybe Maybe Maybe some good news on CBL.
As I read it Lindberg lost the trial of the memorandum of understanding case he signed with the regulators. There is a long decision listed on the NCDOI web site, as a well as a FAQ about what happened and what might happen.
I'm sure the decision will be appealed, as every case that Lindberg is involved in and losses is appealed. So if this appeal takes as long as some of the others I've watched, maybe in about 2 more years some resolution might take place.
As I read it Lindberg lost the trial of the memorandum of understanding case he signed with the regulators. There is a long decision listed on the NCDOI web site, as a well as a FAQ about what happened and what might happen.
I'm sure the decision will be appealed, as every case that Lindberg is involved in and losses is appealed. So if this appeal takes as long as some of the others I've watched, maybe in about 2 more years some resolution might take place.
