Legal Question in Credit and Debt Law in California
Collection Dispute
I use to sell insurance and around five years ago
an insurance company refunded premiums to a policy holder when they complained about the performance of the policy. At the time I complained about it and they kept a chunk of renewall commissions. The subject was dropped. I didn't here from them until last week when a collection attorney sent me a letter
saying I owed more money. Can an insurance company do this? How do I fight this?
1 Answer from Attorneys
Re: Collection Dispute
It sounds like you had a contract with this company requiring you to reimburse them commissions that had previously been paid out to you when a policy cancelled.
First of all, I would need to read the employment contract to tell you if they can or cannot do this. However, 5 years would be past the statute of limitations for bringing an action in court. If that is the case, the collection agency could be liable for harrassment.
Let me know if you have a copy of your employment contract with them.
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