Insurance Advisor clawbacks

Misha44

A few years back, I worked for six months as an Insurance advisor, with the clawback clause in which I was explained that if any of the policies I sold were cancelled for any reason within the first two years, I would have to give back the commission in total, I was reassured that its around 20% of total earnings. However, after a few months of struggling, borrowing money from friends, and working as a waitress (in secret, as the insurance broker forbade me from taking additional jobs)  sold some policies. The money was good if I had clients, but there was no guarantee as I had to call my briefs & family, their friends, and so on. I don't feel that the training was comprehensive; I was taught how to get by and push sales. Unsurprisingly, I have quickly realised that it is not a job for me. I resigned. 

The next thing I know is that I owe them over a grand. - at the same time, I'm looking for a job and need to firn an apartment, so I negotiated with the debt department that I will pay 15 pounds a month. All good; I maid of 1/3 in six months, but then..the Pandemic hit. And I couldn't pay, then I forgot about that and eventually moved out from the UK.

Two years later, Im receiving an email that now the debt was tripped and a Question about why I was not responding to their correspondence (quite aggressively) and had 14 days to pay it.  I explained that I didn't know that it was so much money. I had not received any emails moved to the EU, no longer in England, as I struggled and asked if that's ok for me to pay 15 pounds again as we agreed previously, and of course, I had to question why they never told me about the outstanding balance. 

They don't respond to my emails, so that's my worry. 

I don't know what to do; I Do not want to ask my parents (farmers) for the money to pay off my groceries from 4 years ago! I feel ashamed and afraid they will go to court and send a bailiff to my house.  I do not know what to do. Any advice? Is that employment law? Or civil matter? Is it still in the UK? Is it in the EU? Can I argue that verbally? They said it's 20%, not 80%, of a clawback. Is that still my debt to pay since they failed to inform me for two years about the balance?


Please help

fatbelly

If you still live outside the UK it's unlikely that they would be able to enforce anything.

Are you paying the £15 per month? That's entirely your choice but it's unlikely anything would happen if you didn't

It's contract law - they would need to start a claim at your last known address. Even if they got a ccj it's throwing good money after bad from their perspective

Misha44

Thank you, fat belly. I'd preffer it off in an amount I can afford rather than be scared of being stopped at the airport, having CJJ or bankruptcy in the future if I will come to the UK for any reason or for the bailiff to knock on my door.  My trouble is they dont to respond to my correspondence. - I haven't paid in the last 2 years and was thinking of starting payback again, despite no response.  

Do you think I should put in a complaint? Start paying? I don't want to annoy them ( the debt is super high for me 3,5k) 

fatbelly

If you're determined to pay it, offer them a sum in full & final settlement.

I think you're worrying unnecessarily though

sourcrates

You won’t be stopped at the Airport, it’s a civil matter, or be made Bankrupt or have a Bailiff knocking on your door, stop overthinking things, in the world of debt, this is an incredibly minor collection issue.

Bad debts are usually sold to debt purchasing companies if payment is not forthcoming, all correspondence will go to your last known address, if no response it’s 50/50 they will just give up.

As you live abroad, it’s really a non issue, should you return to the UK, you won’t have interpol waiting for you.

DullGreyGuy

In your second thread you say you were self employed in which case failure to repay is a civil commercial debt which means statutory interest applies (unless your contract said otherwise) so its not a very cheap debt to leave laying around.  At 12.25% interest and over £1,000 of debt your £15 a month would only just cover the interest plus you have shown not to stick to prior low payments.

Depending on the firm they may decide to get a CCJ against you, depending on if you intend to return to living in the UK in the next 6 years will determine how much you really care about that.

UK to EU debt recovery is certainly possible but it's easier in some countries than others. It'd be unusual to go to such extremes for such a level of debt but again your country of residence may make getting the cost of recovery back easier 

Hindsight is a wonderful thing but you should have kept a fund to pay for this when you say the money was good. Similarly you should be maintaining your PI insurance given its on a date of claim basis and people could sue you for miss-selling them insurance for up to 6 years.

Misha44

DullGreyGuy, thanks - to clarify, the money was good not in terms of me having a highlife. Let me explain;  If I sold one policy for 18 pounds a month, I would receive a one-time payment - of 432 pounds. So I, someone was a successful salesperson there they were earning Thousands a week! I had very few clients- in total, working there six months; I have not even made 1k a month/ so that was below minimum wage - all the money (including my savings) went to pay my bills/groceries. So good at multiplying the policy value by 24 (24 months of the policy length). That was the time when I  worked harder than ever...and now I need to return at least 80% of every penny I spent in those 6 months. I also ran out of my savings (around 4 k and I had to borrow money from family at the time as well), as we had to go to Scotland (at least 4 times during my time there). 

My understanding of English was not that great at the time, so I did trust the manager who said, "It is only 20% clawback" (not 80%) and everyone goes on holiday for a month at a time, and in a year you will be able to earn enough to buy a house!

And that is definitely MY mistake, for being naive and inexperienced and crap at the job of an insurance advisor. If I knew how that would play out, I would defo stay in the warehouse/factory earning my money (instead of collecting a big credit).