The main reason the debit business has gone away is because of safety. It's just too dangerous today. I have been in the insurance business for 49 years and was always in the ordinary sector. The is the term used years ago for monthly premium payments that were mailed to the company or on EFT. In 1993 a manager with one of the debit companies approached me as asked how I would like to work three days a week and make $50,000 per year. I lost my mind and said yes and went to work for a debit for about two months before I discovered he lied to me. This was the worst nightmare I have ever experienced. I took over a debit where the former agent was stealing money but I was told it would be 90 days before the debit would be transferred to me and it would be "cleaned up" before I would be responsible. One week when I settled it would show the debit owing me $900., the next week it would show me owing $900., but no one would help. I found that the company knew the previous agent was stealing money for over a year. When he was fired, he went across town and another debit company hired him and went back to the same customers. It was one of the worst rackets I had ever seen. I left the company and a year later I got a certified letter that an audit had been completed and I owed the company $300 and was threatened with legal action if I didn't send the money. I went to an attorney and he told me the best thing that could happen to me would be for the company to sue me. He said I would wind up owning the company. The attorney wrote to the company and requested all the records they had and they went away. I never heard from them again. But back to the original point, collecting a debit today is just too dangerous.
Why there’s still a market for “debit” insurance
- Thread starter shonceman
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I can attest that there have been some slimy debit companies and slimy agents. The slimy companies are mostly all gone, having been acquired by larger, better managed companies. There are still some slimy agents around, but they never last long. These days, the debit companies have systems in place that make it much harder for an agent to get away with theft. Most of the debit agents I know that have been at it longer than a year or two are extremely ethical, honest, professional, and really care about their clients.
Besides, I started as an “ordinary” agent. There were plenty of slimy agents on that end of the business, too! They just couldn’t steal people’s money directly. They had to be a little more creative! I also work a fair amount of non-debit FE. Again, lots of slimy agents there, too. I don’t think the debit insurance business has any kind of a corner on unethical behavior!
As far as being too dangerous, that all depends on where your debit is. I started on a rural debit. It wasn’t in the least bit dangerous. But it was tougher to generate business out there than in the city. Today my debit area is mainly inner city Dallas. Yes, there’s an element of danger, and I’ve had a minor run-in with it. But only that one time in 30 years! I haven’t found that it’s any more dangerous today than it was 30 years ago. (I might feel differently in Chicago or Philly!
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You know, as an independent debit agent, you can still sell other products. I do. I’m limited on what I can offer my debit clients. But for everybody else, I can and do write everything you can.
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That
When I hear agents say or imply that we can not build sufficient relationships with clients over the phone I think to myself 'you just don't know what you don't know '.
Mennonite?
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Brethren - originally called German Baptist Brethren when they first came to America.
