Commission Chargebacks - What Should I Do?

[VolAgent]

Only one slight correction/addition to what Dan said.

And I am not an attorney, so my advice, legal or otherwise, is worth what you paid for it.

It is their obligation to prove you owe it, including that it is not time barred. So one, never acknowledge you owe the debt or that you owed the debt at some point in the past. Make them prove it each step of the way. You can ask, when is the alleged debt from, is it past the statue of limitations? You don't have to proof it is time-barred, they have to prove it isn't.

Send a written letter demanding proof the debt is yours and valid, send it certified with signature required. Technically you don't have to, but this gives you proof it was sent and when it was received. The law says they have a reasonable amount of time to respond, although it does not say what reasonable is. Of course, I would argue anything over 6 months or a year is not reasonable.

Technically you owe it even if time-barred. However it is completely noncollectable and cannot be reported to a credit bureau. If you do make a payment, it may reopen the collection period, so it may be best not to pay if time-barred.

One nice thing about it being twelve years old, even if it is still collectable, the odds of them having proof are slim.

 

[LGilmore]

Something similar happened to me decades ago when one health carrier bought out another. They came back and claimed the carrier paid out too high a commission when they operated and demanded I repay commissions earned before they bought the company and decided the payouts were too high.

I filed a compliant with the AG office of my state who contacted the carrier and demanded they prove to the AG their case. They quickly let me go "this time" and never bothered me again. They were trying to collect 3 years commissions that I earned. They had no case, but decided to try anyway.

If 12 years have passed, that error is on them. Contact your AG office and file a complaint. You are not responsible for their ability to account for things. Let them decide if $800 is worth stating their case to your AG.

 

[jdeasy]

Legally, the debt (assuming it was valid at some point) never goes away. Effective means to collect the debt fall under various statute of limitations, usually 4 to 7 years, depending on the state.

At this point, they cannot report it to credit bureaus (including, I assume, Vector, but vector tends to make up rules on their own). They can file a lawsuit against you, but you can just claim that it is time barred and that puts an end to it. If you don't say its time barred, then they could potentially win, even at any point.

Ask for proof. Don't acknowledge the debt, don't pay a 'dollar' to keep it from being processed, anything. Claim it isn't yours and act as such till they prove otherwise.

Normally, I say pay the debt you owe, but someone coming up that old is a slimebag and they know its not collectable. They are just hoping for some people to pay without thinking much about it.

Dan

Here it's 4 years from the date of last bill.

On another point about these companies, I haven't written 1 Star in almost 4 years. I was getting my renewals just fine and then a couple months ago they just stopped.

They don't allow non contracted agents access to the website nor do they send commission statements.

I called to see why my renewals stopped. They said I had a death claim not paid and a chargeback of almost $1000.

I told them that was impossible as I hadn't written anything with them in almost 4 years and couldn't have any contestable policies on the books.

They researched and said it was from a death claim back in 2014 that was rescinded. They never charged me back but an audit found it now.

I never got a notice about that death claim. Never got a notice about this supposed audit. Had I not called them I still wouldn't know why my renewals stopped. I got a small deposit from them yesterday so I guess my chargeback is paid off.

But no way to know if it's legit or not.

 

[Norwayguy]

Here it's 4 years from the date of last bill.

On another point about these companies, I haven't written 1 Star in almost 4 years. I was getting my renewals just fine and then a couple months ago they just stopped.

They don't allow non contracted agents access to the website nor do they send commission statements.

I called to see why my renewals stopped. They said I had a death claim not paid and a chargeback of almost $1000.

I told them that was impossible as I hadn't written anything with them in almost 4 years and couldn't have any contestable policies on the books.

They researched and said it was from a death claim back in 2014 that was rescinded. They never charged me back but an audit found it now.

I never got a notice about that death claim. Never got a notice about this supposed audit. Had I not called them I still wouldn't know why my renewals stopped. I got a small deposit from them yesterday so I guess my chargeback is paid off.

But no way to know if it's legit or not.

Don't you love that find an error in your favor and you better let the company know in reasonable time or tough cookies...they "audit" themselves years later and what they realize is they can claim something without proof.

 

[jdeasy]

Don't you love that find an error in your favor and you better let the company know in reasonable time or tough cookies...they "audit" themselves years later and what they realize is they can claim something without proof.

True, but I had it happen the other way too. I haven't done MP in years. I get about $10 per week from F&G now.

A couple years ago I got a deposit for about $350 from them.

I called about it and they told me I had a lapse back in 2006 or so and they charged me back. But the guy reinstated the policy and they never repaid me my commissions. Same story, an audit discovered it.

Unlike 1 star they were able to send the documentation of what happened.

I did remember it once they sent me the file. I helped get it back on the books. Just didn't remember that I wasn't paid on it.

 

[Meghan8712]

IF you are asking if we think you should pay back the money you borrow or if you should stick your upline with your debit, the answer is, PAY YOUR BILLS.

You are part of what is wrong with America Today. Pay the company back the money you borrow from them and your business didn't stick.

Stop trying to get out of paying back the money you owe the company. I bet you didnt even send them 20 bucks in years.

I'm sorry, but you appear to be a low life. Pay your bills.

NO! What is wrong with America today is companies like this that rob you of money that you earned! They lie to your face and dazzle you with the "opportunity" to make a lot of money with them. CORRECTION: all you're doing is making money for them. They are liars and thieves, and anyone associated with companies like this, knowing how they run, should be burned at the stake. I would like to spit on anyone associated with companies like this.

 

[somarco]

This thread started in 2010, or 2009 if you think the OP started a similar thread a year earlier.

Now Meghan has an opinion that says DON'T pay your bills. Makes me wonder if she would feel the same way about working for an employer who refused to pay her for the time she contributed.

 

[Meghan8712]

This thread started in 2010, or 2009 if you think the OP started a similar thread a year earlier.

Now Meghan has an opinion that says DON'T pay your bills. Makes me wonder if she would feel the same way about working for an employer who refused to pay her for the time she contributed.

Actually, "somarco" I was working for a company who is basically not paying me a dime for the time I contributed! And they sure as hell didn't "contribute" any time to me! That is for damn sure.

 

[shonceman]

This thread started in 2010, or 2009 if you think the OP started a similar thread a year earlier.

Now Meghan has an opinion that says DON'T pay your bills. Makes me wonder if she would feel the same way about working for an employer who refused to pay her for the time she contributed.

She also doesn't understand that it's not the company that gets stuck with the bill if the agent doesn't pay, it's the low level manager or upline that gets left holding the agent's bag!

That being said, there are one or two companies that when an agent wants to leave them, will attempt to chargeback commissions for policies that are still active and current on premiums, and report to Vector in short order rather than allowing the agent to even make arrangements. That has the effect of putting that agent out of the business. That seems pretty wrong.

 

[Life Hawk]

I worked for an insurance company specializing in the senior market for a year from 2008 to 2009. I did not have a good experience at all, it didn't work out and I am no longer in the industry and don't plan on returning. A couple days ago I got a call from a collections agency saying that I owed the company I worked for a little over $2,000 from chargebacks for cancelled policies. They gave me a deadline of October 1st to pay back the amount in full or they would put it on my credit report, as well as any other reporting agencies. Do I actually have to pay these back and what would happen if I didn't? i.e. jail, court, black mark on credit report or just not be able to work in the insurance industry anymore? Any advice would be appreciated. Thanks.

Go back part time and sell, sell, sell. Who knows, you might like it after all... If not, then just sell $2K worth.