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Letter from an ex-Agent:

I was 22 years old making around 25K per year trying to move up within my company. I already had 1 child and another on the way. I had no assets, no money in the bank, and poor credit. I was in sales and set up a meeting at a Farmers district office to talk to them about my product. Little did I know the district manager planned to sell his lies to me instead.

I was harassed at my current job by phone almost daily until I finally decided to take the exams. I was promised a better life for my family. I was shown numbers from California policies (I didn't know at the time) These numbers were at least twice as high as the numbers in my state. I was pushed to quit my job after I passed my exams. It was recommended I borrow money to get through until subsidy "kicked in" I borrowed all I could. I did well, and was hitting the numbers I was told I needed to hit in order to achieve this "better life."

When I finally went career I was pushed to write life policies on myself, kids, other agents, and my district managers kid just to max out my subsidy and reach topper club. I did all of this. I was on track for that "better life." I had around 500 policies at the time I was off the career program. Based on the numbers the DM showed me, 500 policies was very close to my original goal.

When the subsidy quit is when the wheels fell off. 500 policies were not enough! My average policy was worth around $250/6 months, not the $400/6 months the DM showed me when he recruited me. I had office rent, a secretary, and marketing expense that I all of a sudden couldn't afford. I had to get rid of the secretary. I then became the secretary, I could no longer market effectively.

I lost my home trying to make it work. I had medical bills I couldn't pay. I had to leave. I am now a claims adjuster for a different company. The reason I found this site is because I received a call yesterday morning from a very rude, arrogant collector of some sort. He stated I owed Farmers Insurance $20,000+ and he wanted to know what kind of assets I have. I HAVE NOTHING. Everything I had I lost trying get that "better life" I tried to work out payment arrangements with him. He told me because its a business loan that I had to come up with all the money within 3-6 months or they would get a judgment against me, just as I'm getting back on my feet.

Please Send me an email if you have any advise.

Thank You, Shane

Moderator:

Hi Shane,

Wow, sounds like the same boat ride I went on. Inflated numbers to get me motivated, took out lines of credit and loans to float the agency. Things go south, you're stuck with all the debt and they send you a bill to quit.

The other thing that I'd like to point out, your 500 policies, how much did they offer? $4k maybe? A joke considering you spent all the money you borrowed and the subsidy on it isnt it?

The first person you talk to about paying back the subsidy is someone with Farmers, after a month they send it to a collection agency that has already bought that debt for pennies on the dollar. From what i've seen, you can settle with them for about 40-55% of the total amount.

As for the judgement, it sounds more like a threat for this stage in the game to get you to pay. Its that collectors job to scare you. I unfortunately cannot offer you any legal advice on this though. If I had any money left, I really wouldnt mind suing Farmers for misrepresenting their opportunity to me by hiding key facts of what the program is really like and what the real potential to earn is.

Perhaps one day we can all form a class action suit and put a stop to all this nonsense.

Thanks again!

Moderator