Subject: Seeking Advice: Policy Cancellation Issue with Agent
Recently, we sold our business and reached out to our insurance agent to cancel our policy. However, three months later, the policy remains active, and I received a bill from the insurance company. When I contacted the agent, he claimed it was our responsibility to ensure the cancellation, but he didn’t mention this during our initial conversation. Now, the insurance company is sending the bill to collections because I refuse to pay due to his oversight.
I’m concerned about the potential impact on my credit and frustrated with the agent’s lack of follow-through. I have emails that document our conversations and their dates. What should my next steps be? Should I contest the collections process? Any advice would be appreciated. Thank you!
I’m sorry to hear about the situation you’re facing. It’s understandably frustrating, especially since you followed the correct steps by initiating the cancellation. Here are some suggestions on how to proceed:
Gather Documentation: Collect all emails, records of phone calls, and any other correspondence with your insurance agent regarding the policy cancellation. Having a clear timeline and documentation will be crucial.
Contact the Insurance Company: Reach out to the insurance company directly, explain the situation, and present your documentation. Request that they review the case and consider reversing the billing since you attempted to cancel in a timely manner.
Communicate with Collections: If the account has been sent to collections, inform the collections agency about the situation. Provide them with the evidence that shows you tried to cancel the policy. You can express your intention to dispute the debt if you believe it was not your responsibility. They may hold off on pursuing the debt while the dispute is being reviewed.
Send a Formal Dispute Letter: If necessary, draft a dispute letter explaining your situation and referring to the documentation you have. Be sure to send it via certified mail to have proof of your dispute.
Consult a Consumer Protection Agency or Attorney: If the issue isn’t resolved, consider reaching out to a consumer protection agency or an attorney who specializes in insurance disputes. They can offer guidance tailored to your situation and may help negotiate on your behalf.
Monitor Your Credit Report: Keep an eye on your credit report to ensure that this debt does not negatively affect your credit score. If it does appear, you may have grounds to dispute it based on the circumstances.
Consider Reporting the Agent: If you feel that the agent acted unprofessionally or negligently, you may want to report them to your state insurance department or regulatory body.
Taking these steps can help protect your interests and hopefully resolve the matter without impacting your credit. Good luck!