Help with Handling chargebacks PLEASE! PLEASE! RESPOND

Discussion in 'General Insurance Agent Discussions' started by cod8825, Nov 6, 2006.

  1. cod8825
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    cod8825 Expert

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    Look I know that everybody was right and that I should not have worked as a captive agent with United American but I did in the months of July, and August this year.

    The problem is that I wrote two policies and within a week they canceled on me which is fine after hearing another lady have a $10,000 tonsolalitis outpatient surgery and the company only pay 400 dollars. That was it that was the last straw.

    I decided to learn the right way to do insurance and started reading everything here and elsewhere and not write any more business.

    The problem is the policies cancelled and my manger calls me because I have not cancelled my appointment. He precedes to rip me up one wall and down the other on a voicemail message that he left. The icing on the cake is that he states that I have over 1000 dollars in chargebacks when can't be possible because all I have received is a check for 343.14 and another check for 117.34 or something very close to those amounts I still have the deposit slips for them. I do not mind paying them back the two amounts above but that is twice what was payed to me.

    What can I do what are my options I want to know what to do before calling please again any thoughts even criticisms so that I do not make the same mistake twice.

    Your thoughts are greatly appreciated.
     
  2. Sam
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    Sam Founder Administrator

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    There might be some others who are better equiped to do the following, so if anyone who was once captive wants to step in, I will take a back seat. I would be glad to call up your manager as your "advisor" and have a talk with him.
    At the end of the day, they cannot make any chargebacks until they show you written documentation of what they are charging you for. If it comes down to it, they can charge you interest, or some other fees that they built into the contract, but I can't imagine that it would be $1,000.

    Shoot me an email for my number, and we can get this taken care of.
     
  3. natem2112
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    natem2112 Super Genius

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    When I left the NASE nightmare 2 years ago, they claimed that I owed $12,000.....

    I basically told them to get lost, they had a few letters come and a accountant call me trying to settle for $800 a month later.

    By this time I was just plain pissed.

    I had invested a bit of money to get involved, and had mad a measly $12,000 in commission, tracking my policies, I knew only of 3 of them that cancelled with in that time period.

    Once I left the nightmare, I started making in excess of $4500 a month, now that I wa confident that I was selling a "REAL" product.

    Never heard from them again.

    I wouldn't neccesarly tell you this is the route for you to take this, just because they didn't put it on my credit report, doesn't mean yours will not either though.

    This is the cutthroat part of the biz.

    Good luck.
     
  4. somarco
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    somarco Guru

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    Can't say about captives, or the UA system, but here is what happens in these situations.

    You write a policy, you are advanced commission which is a loan. You signed papers when you joined acknowledging such and you are liable for repaying the amount loaned.

    Your upline manager is essentially a co-signer for your loan.

    You get advanced commissions. If you don't pay his account is debited for the amount of the loan PLUS his override.

    If you were advanced $500 (round numbers) and he was paid $500 in overrides, the debit balance is $1000 to his account.

    When you pay the company, all you owe is the $500 you were advanced.

    If you walk the loan, the manager has a right to come back to you and demand the amount he was charged back which in this case is $1000.

    The company may decide to pursue you for the $500 or they may leave it up to the manager. The company may Vector you. If so, your debit balance is reported to a company that tracks these things for carriers and you will not be allowed to have another advance commission arrangement until the carrier is paid off.

    Your manager may pursue this in small claims court. If he does, and he wins a judgement, you will owe the amount awarded, plus court costs, plus interest.

    Your manager has every right to pursue this but he has no right to harrass you.

    My suggestion is to contact UA and settle up with them. Keep a trail of everything and use that as your proof the debt is settled in case the manager keeps pursuing.

    Once you have settled with UA, your manager really has no more cards to play.
     
  5. cod8825
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    cod8825 Expert

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    Thank you all for your input it is funny I stepped out to go check on how my son is and then I come back and this is what happens. I a going to call my manager and ask what the deal is on the charges and go from there. If I need further help Mel I will ask.
     
  6. cod8825
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    cod8825 Expert

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    Got off the phone with my upline manager
    This is good.

    I tell him why the people cancelled and he goes into a story about how policies are sold different in southern Missouri and that the Springfield office sells crap policies. I just say yes and nod my head with him.

    Then he states I was advanced on one policy and not the other and that the balance will be reflected in the monthly commission statement coming out the 10th of this month and since both of them cancelled before the cutoff date of the 7th of month I will not be advanced the balance of 500 to bring the total up to 1100 dollars so in other words all I will owe is the 343 and some dollars and 117 and some dollars to United American. Thank GOD
     
  7. jmarkk1
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    jmarkk1 Guru

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    If you were advanced $500 (round numbers) and he was paid $500 in overrides, the debit balance is $1000 to his account.

    When you pay the company, all you owe is the $500 you were advanced.

    If you walk the loan, the manager has a right to come back to you and demand the amount he was charged back which in this case is $1000.

    Is this scenario that you are explaining referred to as "rolling up the balance?"

    In other words paying back a debit balance that's not just yours but what was your "upline's debit balance."
     
  8. GeminiGroup
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    GeminiGroup Guru

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    Wow, I know it must be X-mas if an answer can come over 5 years later.

    I knew their, must be a Santa Claus?
     
  9. xrac
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    xrac Guru

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    Yes! There is a Santa Claus!
     
  10. ugbxh1
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    ugbxh1 New Member

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    Does anyone know how a chargeback works if the company made a mistake and sent you a commission check and you called them to verify if it was yours and they said yes and now they are wanting you to pay it back and has made it a charge back against you.
     
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