Commission Chargebacks - What Should I Do?

[jdeasy]

Yes, the guy owes the money. Most likely anyway. It could have been a case where the policies are still on the books, but, he wasn't vested. He still owes because of a bad contract and his upline is legal stealing. The key word being legal. He still owes it.

But, I have trouble feeling sorry for these FMO/IMO types that will give a contract and advances to anyone with a pulse and then cry when that 500 credit score agent they wowed with their recruiting pitch doesn't work out.

Marketers lie to potential agents everyday and then call the agent that they tld those lies to a lowlife or a deadbeat.

And then sometimes the company is just wrong on the chargeback. I have one now with UA supposedly. Even though I haven't written anything for them in almost 3 years, they came up with a chargeback when the office I was under closed. I have told them that i would pay any debt I owe as long as they can show me what it's for and when. This has been ongoing for about 6 weeks now and they can't show where this supposed chargeback is coming from. So far they are not pressing me for the money since they are investigating, but, in the beginning they sent me a nasty letter about sending it to vector and other actions. My FMO has not lifted a finger to get this resolved.

Since this guy first brought it up a year ago, he probably owes the money. If he does, he should pay it and shut up. We learn very expensive lessons in this business.

 

[Larry Tew]

I don't disagree with your sentiment. But like it or not, this is a contract issue, not a moral or philosophical one. It's like the guy in a state of walking poverty who goes to a payday lender and pays the equivalent of 80% interest so he can buy bread and milk until next pay day. Then he cries foul and wants everyone to know how unfairly he was treated.

 

[jdeasy]

I don't disagree with your sentiment. But like it or not, this is a contract issue, not a moral or philosophical one. It's like the guy in a state of walking poverty who goes to a payday lender and pays the equivalent of 80% interest so he can buy bread and milk until next pay day. Then he cries foul and wants everyone to know how unfairly he was treated.

I agree. I said that, if he owes the money, he should pay it.

But, the same logic applies to your example. I wouldn't feel sorry for the payday loan guy if he was crying about not getting paid back from the obvious credit risk he loaned money to.

For examply, I had a truck for sale a few years ago. I wanted $11,000 for it. I had a guy offer me $12,000 if he could pay me $6000 down and the other $6000 on payments. I told him that I wasn't a bank, but, he could go to the bank and get a $5000 laon and pay me $11000 and the truck was his. He said he had bad credit and couldn't get a bank loan.

Now, had I sold him the truck on payment, I didn't, I would have any right to cry if the guy didn't keep his end of the bargain when he told me upfront he had bad credit. Even though the guy would be the one in the wrong if he didn't pay, I would have been the stupid one to have given him credit.

Same for these FMO types. They will paint a pie-in-thesky picture and sign up anyone that fog a mirror, regardless of credit history, and then cry when that deal goes sour.

Their cries fall on deaf ears as far as I'm concerned.

 

[xrac]

I agree. I said that, if he owes the money, he should pay it.

But, the same logic applies to your example. I wouldn't feel sorry for the payday loan guy if he was crying about not getting paid back from the obvious credit risk he loaned money to.

For examply, I had a truck for sale a few years ago. I wanted $11,000 for it. I had a guy offer me $12,000 if he could pay me $6000 down and the other $6000 on payments. I told him that I wasn't a bank, but, he could go to the bank and get a $5000 laon and pay me $11000 and the truck was his. He said he had bad credit and couldn't get a bank loan.

Now, had I sold him the truck on payment, I didn't, I would have any right to cry if the guy didn't keep his end of the bargain when he told me upfront he had bad credit. Even though the guy would be the one in the wrong if he didn't pay, I would have been the stupid one to have given him credit.

Same for these FMO types. They will paint a pie-in-thesky picture and sign up anyone that fog a mirror, regardless of credit history, and then cry when that deal goes sour.

Their cries fall on deaf ears as far as I'm concerned.

You make a very valid point about credit risks and commssion advances. That is another perspective.

 

[theinsuranceman]

I personally will not contract anyone with a FICO of less than 650 and/or has a vector problem. I've often thought about reducing advances to 50% for future hires.

Me, their mgr., is the one on the hook for advances that don't clear out because of persistency problems after an agent leaves. I'm a nice guy, but not that nice.

JD is right on the money on this. Too many FMO's, GA's, etc. will hire anyone. That's just bad management.

 

[myinsurebiz]

I personally will not contract anyone with a FICO of less than 650 and/or has a vector problem.

LOL - funniest thing I've heard all week . . .

 

[somarco]

Tom, what are you up to these days? Still renting phone dialer positions?

 

[theinsuranceman]

LOL - funniest thing I've heard all week . . .

Why do you think this is funny. If you had applied these standards to your recruiting 1 1/2 years ago you would not have had that $15,000 agent debt to pay back, and not had to drop out of the insurance arena and go into retail this last year.

Or did I just miss your joke altogether?

 

[Pangaea]

Why do you think this is funny. If you had applied these standards to your recruiting 1 1/2 years ago you would not have had that $15,000 agent debt to pay back, and not had to drop out of the insurance arena and go into retail this last year.

Or did I just miss your joke altogether?

What you did miss was the discretion train, bringing up anything to do with his personal finances in this thread is simply tasteless and unwarranted.

 

[myinsurebiz]

Studying for the Series 65 exam and selling a little FE, but learning about worksite products with Symetra and Colonial.

I'm going to learn more this time, not take advances and build a book of biz that I'll be able to retire on in 10 to 15 years.

By the way I need a Colonial contract - anybody?

No - the dialer wasn't attractive anymore after 9/09 - plus, that is an irritating business and I went broke doing it.

Tom, what are you up to these days? Still renting phone dialer positions?