Override Chargebacks

Crabcake Johnny

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14,809
Maryland
I guess the carriers are looking for places to grab money. Also, highly odd that two carriers hit me this month.

Years back I ran a very small agency and my team wrote "some" business - about 50K a week. I ditched it and went back to writing in 2008. Remember that year. That means no agent has written under me since 2008.

I checked my renewals for two carriers and both were zeroed out. It's not like it's a ton of money in the first place but absolutely prompted a call.

Both claim that agents who wrote under me "a few years back" had negative balances that were never satisfied. For example, just one agent alone has been negative over $480 since 2008. No action has ever been taken and all of the agents were direct - meaning they got paid direct so nothing would have come out of my next check.

Well...they took it out now and will continue to take it out until the entire balance is satisfied. And yes, according to my general agent contracts I'm ultimately on the hook for their entire balance. I called three of the agents this morning to discuss the matter. All three numbers disconnected.

Nice.
 
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I guess the carriers are looking for places to grab money. Also, highly odd that two carriers hit me this month.

Years back I ran a very small agency and my team wrote "some" business - about 50K a week. I ditched it and went back to writing in 2008. Remember that year. That means no agent has written under me since 2008.

I checked my renewals for two carriers and both were zeroed out. It's not like it's a ton of money in the first place but absolutely prompted a call.

Both claim that agents who wrote under me "a few years back" had negative balances that were never satisfied. For example, just one agent alone has been negative over $480 since 2008. No action has ever been taken and all of the agents were direct - meaning they got paid direct so nothing would have come out of my next check.

Well...they took it out now and will continue to take it out until the entire balance is satisfied. And yes, according to my general agent contracts I'm ultimately on the hook for their entire balance. I called three of the agents this morning to discuss the matter. All three numbers disconnected.

Nice.

Mark knows all about this...Have you checked your states DOI records on these agents?
 
This is the story of my life. Debit Balances are the worse thing about my job.

I feel your pain.

IMO or Managers can take a beaten with these chargebacks from their sub agents.

I could retire from the money that is owed to me now.
 
Override chargebacks are fine when everyone's still writing. Agents haven't written under me for years. For one agent, his debt goes back to 2007. The carrier allowed a negative account for four years? Wow.

In my case I at least have renewals to absorb the debt. If not, I'd be getting letters in the mail.

In related news, the percentage of agents contacting me lately regarding getting denied appointment due to their credit is through the roof.
 
Override chargebacks are fine when everyone's still writing. Agents haven't written under me for years. For one agent, his debt goes back to 2007. The carrier allowed a negative account for four years? Wow.

In my case I at least have renewals to absorb the debt. If not, I'd be getting letters in the mail.

In related news, the percentage of agents contacting me lately regarding getting denied appointment due to their credit is through the roof.

How bad does someone's credit have to be to be denied an appointment? :swoon:
 
Sometimes, they wait years until they try and collect from the upline. They can hit you all of the sudden.

I don't like how some companies write the agent just 1 demand letter and then roll it up to me. The insurance companies need to do a better job going after the agent before they roll it up to me.

 
How bad does someone's credit have to be to be denied an appointment? :swoon:

There no magic score. Per one carrier rep I'm in touch with - a recent BK or charged off accounts that are not satisfied or no repayment programs established will likely result in a declined appointment.
 
The few agents I let contract under me in the last year have been as earned only. I wouldn't let the Pope have advances.
When I was actively recruiting agents it was obvious the worst ones needed advances the most. I wouldn't co-sign a loan for anyone. That's basically what you are doing when you sign off on advances.
 
Yep, charge backs from sub-agents' debt can negate the rewards of recruiting. For the last 2 yrs. I only recruit people with Fico scores of at least 650 and no vector problems for advances. Less than that will be as-earned or something like a 25% advance.

When you recruit you will either make $$$ or lose $$$ in the long run. You better be very selective on who you bring on if they are to be advanced and you want to make $$$.
 
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