"Betrayed by a Cluster Network: Lost Contracts and Broken Promises"

[Romani]

Hi everyone,

I am extremely frustrated. I recently signed a contract with a cluster network company that assured me they were accepting new agencies. They requested my agency documents, my resume, and other necessary paperwork. After reviewing everything, they provided me with a contract, which I signed, and I paid a substantial joining fee.

As part of their requirements, they asked me to terminate my contracts with other aggregator companies and work exclusively through them, which I did. Based on the contract I signed, I fulfilled all their conditions.

However, yesterday—after receiving my payment and activating my account with them and EZLynx—I received a shocking email. They stated that, after further review by the company's president, they decided they could not work with me because I am a new agency.

They mentioned they would refund my payment, but, now I have lost all my contracts with other network companies and have been left with nothing. How can they break our agreement like this? How can they treat me like a toy?

What should I do?

 

[Gulliver]

How many agents did you talk to before making this change? Right now most of the aggregators are helpless when securing contracts. This is a known issue. It sounds like this is not one of the good ones if you are having these types of problems. Sorry for your troubles.

 

[LeeV]

Sorry for your situation. When you say you had a contract can you be more specific? For a contract to be completed, it must be signed by both parties. The usual process is for a company to send an un-signed contract for your signature and then return to you with their signature.

If you have a properly executed contract (both signatures) you may have cause to bring legal action. I say may because I have not reviewed the contract. If only you signed the contract, little tough to have anything done to remedy.

Best of luck.

 

[RickyBA]

What were the names of these companies?

 

[marindependent]

Gosh that is horrible. Yep a name of the aggregator would be helpful.

Perhaps they realized that their insurers wont take on new agents so they just shredded the contract. Right or Wrong.

What type of insurance is this?

What I dont quite understand is they said that you are "a new agency" but you had to " terminate my contracts with other aggregator companies "?

I really really hate exclusivity deals - they are frankly often not worth it.

Crazy Question but can you go back to those other aggregator companies and get signed back up and just explain the situation?

 

[shawnmwalker]

This is rough. As an SVP of an aggregator I have been very sensitive to recruiting and over promising in this hard market (Which it seems many have been willing to do). Having said that, things are loosening up again and access is not as elusive as it was 6 months ago.

I wish you luck. Call me if needed!