Commission chargeback on Inforce policies?!

[Allen Trent]

Did you get paid a monthly draw when you started? If so, your contract likely states that you will owe any deficit when you go into competition, regardless of whether you take any customers.

So, if you got say $3,000 per month for 3years as an advance, you received $108,000. If you produced $38,000 in commissions against those draws, then you have a $70,000 deficit that they contractually expect you to pay.

I doubt that is the case as those size draws are uncommon in the life only business, but I dont know what Forresters or your firm had as a comp plan to get you rolling

 

[Cake8D]

No comp plan straight commissions, when I started there was a min wage salary for 6 months which was a draw I paid back in full after I was up and running. Beyond that I can’t understand how they can ask for my commissions back from years ago for policies that are still Inforce and they kept the clients, and renewals. The letters they have been sending to my new firm state I was terminated when I actually resigned. I truly believe this has something to do with the labor department complaint I filed and won. I feel like they are trying to make an example of me so others don’t leave.

 

[WinoBlues]

The letters they have been sending to my new firm state I was terminated when I actually resigned. I truly believe this has something to do with the labor department complaint I filed and won. I feel like they are trying to make an example of me so others don’t leave.

If so, that could be a big mistake on their part. As everyone else posted. Ask for everything in writing. Keep a detailed log including any phone conversations.

 

[goillini52]

I don't understand how they can ask for the return of advances that have been repaid.

Pay an attorney to send them a pond sand letter.. Probably get it done for $100.

He could take out a Foresters Certificate and with his member Legal Benefit, he could send that letter for nothing. Wouldn't that be something.

 

[DayTimer]

Thank you everyone! I’m going to give them a call with my manager tomorrow I’ll update afterwards.

Put it in writing - get an attorney to help you out. You need an attorney who specializes in debtor, not creditor advocacy.

Did the demand for payment say "this is an attempt to collect a debt"?

Did it provide instructions for having request debt validation?

Don't call them - spend a few hundred and get some proper legal help. Then send them a bill for your legal fees lol

 

[Cake8D]

No wording that says “debt” just “payment” that they require payment in 15days and where to send a check. It gives no instructions on how to validate the amount or get anything in writing. The letter says to give the attorney a call, I looked up the attorney it’s the chief legal consul at foresters. It says “terminated” on the letter which my new firm also got today. My morning was all compliance calls

 

[Cake8D]

My dad actually has a advantage + with member benefits at foresters and a small vul with foresters Financial. It’s foresters Financial that sent the letters, they were two different firms when I worked there. All Canada foresters business was considered outside even though we were captive agents at foresters financial.

 

[rousemark]

No wording that says “debt” just “payment” that they require payment in 15days and where to send a check. It gives no instructions on how to validate the amount or get anything in writing. The letter says to give the attorney a call, I looked up the attorney it’s the chief legal consul at foresters. It says “terminated” on the letter which my new firm also got today. My morning was all compliance calls

If you are no longer contracted you are "terminated. Doesn't matter if you initiated it or if the company did so.

 

[pfg1]

Rouse is right, terminated is just that, you are no longer with the company. Terminated for Cause is a different story.
I don't see how they can ask for commissions back on inforce policies, unless you were advanced a massive amount that you haven't squared up yet...and it doesn't sound like that is the case. Get an attorney and stick it to them. Sounds like total BS to me, and if they are just doing this because of the complaint, imo that is bad news for them.

 

[marindependent]

I would reread the initial contract that you signed.

However, I must say this sounds bogus.

I would send them a certified letter requesting contracts involved and all accounting. Notify them that if they do not reply within thirty days with the required documentation (or an all clear letter stating that you in fact you owe nothing) that you will have no choice but to inquire with your state's department of insurance.

CC in the CEO of the Insurer.