Foresters Monthly PAC Internal Error

[thomasm]

I received a notice that one of my clients draft was returned twice for May's payment, and the reason was NO ACCOUNT FOUND. They've been drafting the premium for over a year now.

So I called them and they said, due to some "enhancements" this was an internal error on their part. And they are re-drafting the premium.

No big deal as long as it's fixed, but what concerns me is she said you may see a charge-back come through, and if you do let us know and we'll fix it!

I thought you couldn't get a charge-back unless a policy is lapsed! Apparently Foresters may charge-back just for a NSF even if the certificate is still active? This seems odd!

Anyone else dealing with this?

 

[VolAgent]

They are almost certainly going to chargeback the commission for that month's premium. Then when it is paid, they will reapply the commission.

I can't recall any company that has not done this with as earned commissions. If the payment is returned for any reason, they chargeback the commission it generated. Once the receive the payment, then they will repay the commission.