Colorado Bankers (CB Life)...

[Newby]

My wife and I were told by a Citizens Bank agent that our 100K investment was fully covered (principle and accumulating interest) by insurance similar to FDIC and has maintained that to this day. We found out there was something amiss back in 2019 when we tried to get back our principle (knowing we would have to pay a penalty) to help us purchase our retirement home. We were told it was a temporary glitch and would be sorted out "in a couple of months".

And here we are 4 years later...

If they compared it to FDIC insurance in writing you have a great case. Because it is nothing like FDIC insurance, and they are absolutely not allowed to make that comparison.

 

[Phyllis Christos]

We are in the same boat in Massachusetts. And That's the problem -- we don't have anything in writing from these Citizens Securities scoundrels who were pushing these CBL fixed rate fixed term annuities back in 2018. They absolutely told us we were "fully insured" as long as both our names (2 owners) were listed on the contract. They pointed us to the Mass Guaranty Association website where it does use the word "owners" but the Citizens Associate took that word totally out of context and led us to believe each owner was insured up to 250 grand....when in fact that is NOT at all how it works. The whole annuity is only covered for up to 250 grand. Doesn't matter how many names are listed as owners! So we stand to lose well over 200 thousand dollars because we trusted this Citizens ***. We were contacted by the Wall Street Journal this week to do a phone interview for an upcoming article.... so hopefully there will be some further exposure of the illegal, negligent, and despicable practices being used by these Citizens Associates. Our guy is Steve Singmon...still working out of the Brighton, MASS branch location....Impossible to believe!

 

[Tahoe Ray]

My wife and I were told by a Citizens Bank agent that our 100K investment was fully covered (principle and accumulating interest) by insurance similar to FDIC and has maintained that to this day. We found out there was something amiss back in 2019 when we tried to get back our principle (knowing we would have to pay a penalty) to help us purchase our retirement home. We were told it was a temporary glitch and would be sorted out "in a couple of months".

And here we are 4 years later...

Connecticut
§ 38a-871. “Liability for unpaid assessments. Records. Use of assets of impaired insurer. Distributions” …(e) It shall be a prohibited unfair trade practice and a violation of section 38a-815 for any person to make use in any manner of the protection afforded by sections 38a-858 to 38a-875, inclusive, in the solicitation, negotiation, procurement or effectuation of insurance provided, this subsection shall not apply to the distribution of any publication approved by the commissioner and describing the general purposes and current limitations of sections 38a-858 to 38a-874, inclusive. Violations of this section shall be subject to the provisions of section 38a-817.

This is the law in your state (and is similar in almost every state) that pertains to using a state guarantee association in a sale. It essentially says that you can't discuss it in any sales capacity. I'm sorry that you're dealing with this.

 

[Allen Trent]

I think its kind of a mess because in liquidation, the contract rate is only guaranteed until the date the rehabilitation began 6/27/2019. Then they declare some low rate after that or use minimum contract rate to compute payout values.
The distribution letter said that interest withdrawals will be at the contract rate, which after the guarantee period for me is 1%.
For anybody who hasn't seen the letter you can go to

https://cblife.com/forms/Interest_Only_Election_Instructions.pdf

The third paragraph from the bottom talks about the interest rates.

Doesn't look like letter addresses what the interest rate will be have current rate expires, just says it could drop to the lowest guaranteed rate

We are in the same boat in Massachusetts. And That's the problem -- we don't have anything in writing from these Citizens Securities scoundrels who were pushing these CBL fixed rate fixed term annuities back in 2018. They absolutely told us we were "fully insured" as long as both our names (2 owners) were listed on the contract. They pointed us to the Mass Guaranty Association website where it does use the word "owners" but the Citizens Associate took that word totally out of context and led us to believe each owner was insured up to 250 grand....when in fact that is NOT at all how it works. The whole annuity is only covered for up to 250 grand. Doesn't matter how many names are listed as owners! So we stand to lose well over 200 thousand dollars because we trusted this Citizens ***. We were contacted by the Wall Street Journal this week to do a phone interview for an upcoming article.... so hopefully there will be some further exposure of the illegal, negligent, and despicable practices being used by these Citizens Associates. Our guy is Steve Singmon...still working out of the Brighton, MASS branch location....Impossible to believe!

After the wall street journal hits, find other people that can attest to being told this. File insurance bureau complaints, file lawsuit against citizens & the rep

 

[David Nyman]

I would really like to hear more about the person from the WSJ that is writing the article

 

[rats0001]

Anybody get the new letter yet? Isn't it obvious they will reduce interest rate to the lowest legally required amount? The don't have to worry about disintermediation.

 

[Dan T]

the letter came today…surprised at the offer
Has anyone followed through with the DOJ..they want hear our story..to present to the judge

 

[Phyllis Christos]

Yes to filling out the Victims Impact statement on the DOJ website. Done!
Also filling out complaint forms on about 6 different consumer protection agency websites like FINRA, Mass Dept of Insurance, Mass Division of Banks, Attorney General's office, etc. Finally -- yes to receiving the letter.
Thought it was a great thing until we went on the Kroll website to request our accumulated interest and find the website is "down".... due to "data validation issues"............
Jeeze....this company is obviously getting paid to administer this part of the process...and yet they can't even get their part right.
Everyone is getting paid except the people to whom the money belongs.
Continuing to feel sick to our stomachs.

 

[Dan T]

Any luck with Kroll… my tax guy is looking for options

 

[rats0001]

I GOT IT. Monthly interest payment from cblife. A miracle.