Need Advice How to file a claim against a broker

[TiffanyAZLife]

Sorry if this is not the correct thread but I need to know how to file a claim against a broker I signed up with. The gist is, I gave $1200 for a lead order that I never received. I paid through Venmo (and notated for Life lead order on the invoice) put on my card (not bank transfer). Venmo told me to do a dispute for goods not received through my bank card which I have but it can take months in the process. In the meantime, the broker has given me the runaround telling me she sold policies under my leads and would reimburse me but has given repeated delays/excuses for not sending me my money back. I believe she gave my leads to other agents as well and I have received no payment from this to date (after a month). I told her I would be filing a complaint with her state insurance board, along with the Attorney General office in her state if she didn't pay me and she hasn't so I did. I also sent a demand letter for payment and the next step is to file a small claims. However, my understanding is that the E&O insurance would cover the small claims judgement but I don't know how to find out who her E&O is with. Does anyone know how to find this out?

Also, do I have any other remedies in this situation? Any advice would be greatly appreciated.

 

[adjusterjack]

However, my understanding is that the E&O insurance would cover the small claims judgement but I don't know how to find out who her E&O is with. Does anyone know how to find this out?

I don't know where you got that understanding. It's not true. This is not an E&O issue, it's a contracts issue.

You paid for something you didn't get. That's a breach of contract. If you win your $1200 back, the money comes out of the broker's pocket. If the broker doesn't pay, you'll have several options for enforcing the judgment.

If your demand letter doesn't work, all you can do is file your lawsuit in small claims court and go forward with it.

Your screen name suggests that you are in Arizona. If so, here are the state's small claims rules:

Browse - Arizona Court Rules (westlaw.com)

However, each county small claims or justice court may have its own procedures and forms. Which county are you in?

 

[adjusterjack]

I told her I would be filing a complaint with her state insurance board, along with the Attorney General office in her state if she didn't pay me and she hasn't so I did.

Wait. Are you and she located in different states?

That adds another level of difficulty, though not insurmountable.

Where are you and where is she?

 

[TiffanyAZLife]

@adjusterjack - Yes, I am in Maricopa county Arizona and she is in Beaverton Oregon.

Thanks for much for the information

 

[TiffanyAZLife]

@adjusterjack - Also, what are the options that I have for enforcing the judgement?

 

[ValeRosso]

1. E&O has nothing to do with this.
2. Why would you buy leads and pay with venmo? That doesn't even make sense. You literally have zero recourse here other than filing in small claims and praying you could eventually get garnishment if you win the case, but like the adjuster said, two different states is going to be a PITA I would honestly just take it as a hard lesson.
3. Sounds like you found a garbage broker to sign up with. Id be leaving ASAP.

 

[WinoBlues]

Who is the broker?

 

[TiffanyAZLife]

@ValeRosso - I paid through Venmo because she is the broker and it was for a group lead order. I just didn't know any better. Even Paypal would have been better because I could dispute that with them since I never received the leads. The best I could hope for is my bank crediting me back on my card since I submitted the complaint documentation with the state agencies and if there's more correspondence/update from the Attorney General of the state for fraud.

 

[DHK]

However, my understanding is that the E&O insurance would cover the small claims judgement but I don't know how to find out who her E&O is with. Does anyone know how to find this out?

E&O will not help you and neither will the state department of insurance. E&O only helps when there is misrepresentations in the solicitation and sale of a product to a client, not a business-to-business complaint. Same with the state DOI. They only interfere when a client has been allegedly harmed.

Your next step is to sue in small claims court.

 

[DHK]

I paid through Venmo because she is the broker and it was for a group lead order. I just didn't know any better. Even Paypal would have been better because I could dispute that with them since I never received the leads.

Venmo is a service of PayPal.