I worked for an insurance company last year and they want money back?

Question

I worked for an insurance co. last year and quit because they lost several clients' premium checks, thus, costing me commission. They had already paid me part of the commission up front, but I left kinda p.o.'d, so I didn't pay the money back. I received a call from a private investigator today threatening legal action if I didn't pay the $1,600 back. Is this just an empty threat, or should I really be worried about it? I maintain that most of that money was lost because of errors on their part, but I guess that dosn't make a difference. What to do? Thanks

Answer 1

This is not an empty threat. They will take legal action. You could end up paying them the 1600 + their legal expenses.

If they advanced you commission money and the commission was not later earned (regardless of who's errors caused that)- then you need to pay that money back. By failing to pay them the money back - you are embezzling from them.

Answer 2

A private investigator? Sounds like they had Ernie in accounting pretend he was Magnum P.I. and give you an intimidation call.  When you say "they lost the checks", do you mean that the physical checks were lost, or that the deal got cancelled?  If it's the first one, then it's certainly not your problem and the commission money is yours.  If the deals fell through, then you don't have claim to the commission.  If you feel that you have legal claim to that money, then just sit tight for now and see what happens.  If their lawyer sends you a letter, then find a lawyer of your own, or pay back the money (depending on what the lawyer fees will cost you...) Good luck!

Answer 3

That money is not yours so it is equal to stealing. I think morally you should pay it back.

Answer 4

If you are paid for issued policies, it is yours to keep. They are entitle to get your pay check back if the policies are unissued.