Debit Balance Scare Today

Let's set the record straight. Foresters will allow unsecured debt of $100+ to exist for about 11 weeks before terminating the agent and rolling the debt to an upline. An agent must be terminated before Vector One will allow the agent to be reported. The agent receives 3 notices before any of these actions are taken.

Notice Triggers Action

First Debt Notice "• Debit Balance greater than
$100 for 4 consecutive weeks" • Debt repayment within 30 days from date of First Debt Notice

"Second Debt
Notice" "• Debit Balance greater than
$100 for 7 consecutive weeks" • Debt repayment within 15 days from date of Upline Debt Second Notice

Third Debt Notice "• Debit Balance greater than
$100 for 10 consecutive weeks" "• Debt repayment within 7 days from date of Upline Debt Third Notice"

"Producer Termination" "• Debit Balance (current balance, side account, & producer rolled up debt) greater than $100 2 weeks after Third Debt Notice"
• Begin Termination process
• Rollup of total debt to the next active upline manager
• Debt remains the responsibility of both the producer and next upline manager
• Any future debt will continue to roll up on a weekly basis"
 
Every agent who gets annualized will have this happen at some pt. You write a ton of business and the company changes the product and you stop writing. Some of your annualized business will naturally fall off incurring a short term debit balance. You tell the company you have a ton of 10,11 and 12th month as earned coming. They could care less as they want their money now or a plan to pay it back.
 
Get an e-mail this week about a Foresters debit balance. Had a client NT and I didn't know it. Said I had 14 days to pay in full or they would cancel my contract and report me to Vector. Called and was told I have until 4/27 to pay. They sent that e-mail just to get me to respond. They will get my money on 4/26 unless I write a case with them before them.

I've never understood the benefit of writing another piece of business over writing them a check. It's the same amount of money either way. I would write them a check 100% of the time. Get it cleared out and write your business where ever you want to write it.

I've had one company (Vantis) roll the same debt up to me twice 9-months apart. If I had let new business pay rather than write them a check I would have never caught it and paid them twice.

Writing a new case to clear up a debt is over rated.
 
I've never understood the benefit of writing another piece of business over writing them a check. It's the same amount of money either way. I would write them a check 100% of the time. Get it cleared out and write your business where ever you want to write it.

I've had one company (Vantis) roll the same debt up to me twice 9-months apart. If I had let new business pay rather than write them a check I would have never caught it and paid them twice.

Writing a new case to clear up a debt is over rated.

I agree with you but a company should be up front about their process. Not send out a threatening email when their policy is some thing else. By saying a lot of agents ignore the first notice they are assuming you are that kind of Agent when you have given them no reason to make that assumption.
 
I agree with you but a company should be up front about their process. Not send out a threatening email when their policy is some thing else. By saying a lot of agents ignore the first notice they are assuming you are that kind of Agent when you have given them no reason to make that assumption.

What if they said pretty please?
 

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