Legal Question in Credit and Debt Law in Utah

Commissions Advance payback

I worked as an Insurance Agent for a company that advanced commissions to me. I am no longer with that company and have to pay back those commissions. They wanted immediate payback and I was not able to do that, so they have passed me to a collection agency. The collection agency said that they are going to submit a 1099 to the government reporting those commissions as income, then, they are going to garnish my current wages and still make me pay it all back. Can they still make me pay it back if they report it as income?


Asked on 4/21/06, 7:24 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Commissions Advance payback

It appears that the collection company has violated the Fair Debt Collection Practices Act. A collector cannot make promises or threats which the firm does not actually carry out. The collection company does not have power to file a 1099 on the insurance company's behalf. Document the calls, who, time, date what was said etc. Under the above Act you are entitled to damages from the collection company. You may contact me for additional information at no charge.

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Answered on 4/24/06, 10:57 am


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