Question about chargebacks and vector

Vector is merely an acknowledgement of debt, so whether that be from a chargeback, rescission, leads, or whatever else where an agent owes someone, that is what they list. Vector doesn't ask the amount, reason or anything, it is simply posted that there is a debt owed. From there, the carrier or IMO would send an email to the poster of the debt to ask any questions they want regarding the debt so they can make their determination based on the info provided. This is where LH would say that it was due to leads or chargebacks.

No, they have rules and it is only supposed to be due to money owed due to having chargebacks, etc. In other words, directly relating to the insurance product itself. There is also a minimum, which is $400. If it is less than $400 you're not supposed to put it on there.

I would post their rules for you but I don't think it would go over well with them.

LH never admits it is due to leads because they know they aren't supposed to put anyone on Vector for that. They know exactly how to manipulate the system.
 
You are correct, there are guidelines that need to be met in order to post but the actual amount is not recorded by them. Adding someone to Vector merely requires name and tax ID. By posting you must click to confirm all the criteria are met ($400 minimum, agent is terminated, etc). They did change the wording so it no longer says the money is owed directly to the poster.
 
Vector show be subject to the same regulations as credit reporting companies. If the information reported is incorrect you don't have any recourse. In 2005 I contracted with a life insurance company that annualized commission for eft business. I wrote a policy on a quarterly direct bill and received the earned commission for the first quarter. The policy lapsed when the second quarterly premium was due but the company charged me $700.00 for unearned commission. I went round and round with the general agent who sent memo's to all agents contracted with him and called me a Dead Beat. Last year I was going to contract with AIG but they declined me due to this incident that happened 13 years ago. Vector and any company that declines me because of this can go to hell. There are too many companies with some common sense I can deal with.
 
Vector show be subject to the same regulations as credit reporting companies. If the information reported is incorrect you don't have any recourse. In 2005 I contracted with a life insurance company that annualized commission for eft business. I wrote a policy on a quarterly direct bill and received the earned commission for the first quarter. The policy lapsed when the second quarterly premium was due but the company charged me $700.00 for unearned commission. I went round and round with the general agent who sent memo's to all agents contracted with him and called me a Dead Beat. Last year I was going to contract with AIG but they declined me due to this incident that happened 13 years ago. Vector and any company that declines me because of this can go to hell. There are too many companies with some common sense I can deal with.


You do have recourse, you appeal through Vector and the carrier has 30 days to prove the debt is valid. If they fail to do so, then Vector automatically removes you.
 
I have never heard of Vector before this thread.

Do companies report debit balances on a regular (monthly, quarterly, etc) basis for agents who are actively producing or only when an agent's appointment is terminated?

For example,

If an agent had, say a $5,000 debit/chargeback balance in Jan 2018 but it is paid in full through commission recoveries and the balance is down to $0 in Mar 2018 would any of that show up on Vector? Assume the agent still has their appointment and is producing on a weekly basis for the company.
 
I have never heard of Vector before this thread.

Do companies report debit balances on a regular (monthly, quarterly, etc) basis for agents who are actively producing or only when an agent's appointment is terminated?

For example,

If an agent had, say a $5,000 debit/chargeback balance in Jan 2018 but it is paid in full through commission recoveries and the balance is down to $0 in Mar 2018 would any of that show up on Vector? Assume the agent still has their appointment and is producing on a weekly basis for the company.

Most times companies will give the agent 3 chances to pay or make arrangements to pay. That is usually going to happen over a 3 month period. In other words, they will usually send you a 1st, 2nd, and then 3rd and final notice, each one about a month apart.

Notices that an agent is on Vector go out weekly, I'm pretty sure.

So, this gives the agent plenty of time before the Vector hits. Once a company decides to put you on Vector, it's usually at the point of the debt rolling up to the upline. This is NOT what you want to happen. An agent can ruin their whole insurance career over just a little bit of money.

To answer you a bit more directly on your example, you probably wouldn't come close to being put on Vector if you have enough business on the books that will pay that $5K out in just a couple of months. It's when you don't have the business on the books to cover your advances that gets you.
 
I just received a letter from a company I worked for earlier this year saying I owed them $2655 for charge backs and they had reported my name to Vector One. My issue is ALL of the charge backs are for policies I didn't wright. Three was issued before I worked there or had my license and two were issued after I left. And the amount is more than double my total income from them. All my policies are still active. Who can I report to that someone falsified paperwork to push these charge backs onto me?
 
Contact the carrier and ask for the information: policies, customer names, issue dates
 
Back
Top