• Report: #187565

Complaint Review: Liberty Mutual Insurance

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  • Submitted: Wed, April 19, 2006
  • Updated: Tue, February 17, 2009

  • Reported By:Homosassa Florida
Liberty Mutual Insurance
175 Berkely St Boston, Massachusetts U.S.A.

Liberty Mutual Insurance ripoff negligent company fails to cancel policy then bills you and reports you to a collection agency Boston Massachusetts

*UPDATE EX-employee responds: Typical Liberty Mutual actions taken..

*REBUTTAL Individual responds: Thank you for your message!!

*Consumer Comment: I agree with William

*Consumer Comment: Other issues

*Consumer Comment: Other issues

*Consumer Comment: Other issues

*Consumer Comment: Other issues

*Author of original report: Unrealistic comment

*Author of original report: Unrealistic comment

*Author of original report: Unrealistic comment

*Author of original report: Unrealistic comment

*Consumer Comment: You should have read you insurance papers.

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To whom it may concern,
This letter is written for the purpose of registering a formal complaint against the above listed corporation for the following negligence.

1. Failing to cancel an automotive insurance renewal policy request.
2. Making a claim against me for failure to pay the policies payment.
3. Reporting this information to a collection agency which results in issuing a negative impact against my credit score.

I had contacted Liberty Mutual in two separate written correspondences to their billing address to cancel the upcoming renewal policy prior to the policies effective date. I had stated that I already received an insurance policy with another insurance provider, State Farm Insurance, and did not want to renew my policy and to cancel it. I had also called this corporation by phone also informing them of this same information and was told that they had in fact received these written requests but that the billing department that had received these requests would not cancel this new policy that had not taken effect. It was not an issue of these requests being submitted late but rather it is their billing department's policy not to grant any requests to cancel any policies for any reason. Liberty had not contacted me in any way to inform me of this policy of theirs, but rather discarding these requests and allowing the policy to go into effect and charging me for the policy.

I believe this was negligence on behalf of Liberty Mutual to not cancel the policy nor communicate this with me. They choose rather to allow the policy to go into effect, even though I had insurance with another provider, and send me bills requesting payment. This was followed up with submitting my failure to pay to a collection agency with this inaccurate obligation negatively impacting my credit score. I had planned on purchasing a new car and doing some home remodeling work which would require a bank loan but at this point because of this incorrect negative information listed against me it will cost me a higher loan rate. Needless to say I am very upset with this corporation's failure to offer adequate service to its customers. I had used this corporation's service for four consecutive years and had just received a better rate with another insurance provider. I question whether this was done out of some kind of corporate policy to either charge and collect fee's for services they did not give or at the very least it is a very poor corporate policy not to honor cancellation request nor inform their customers of this fact or maybe it is used to aggravate the customer for his changing providers. To teach the customer some kind of lesson for changing providers, to make it a time consuming and costly undertaking making a customer think twice about changing to a competing insurance provider.

I have spent an exhaustive amount of time and money in pursuit of resolving this matter with Liberty Mutual and have concluded that I must seek notifying any and all regulatory agencies about there services and policies

If this is mailed correspondence you will find attached the following documents. You will see that the State Farm policy effective date took immediate effect at the end of the current Liberty Mutual policy ending in 704. The Liberty Mutual renewal policy ending in 705 had the same starting effective date as of the State Farm policy of 12/25/05

1. Liberty Mutual policy# *******-704 Effective dates: 12/25/04 to 12/25/05 12:01AM standard time

2. State Farm policy# ******* 12/25/05 to 6/25/06

3. Credit Collection Services of Boston, MA.: File Number: ******* Date: 3/27/06 amount of $72.00

I expect Liberty Mutual to contact me in writing within 30 days of receipt of this complaint confirming that they have removed any and all claims and negative credit information against me or I will be forced to seek legal counsel to resolve this issue.

The following are some of the agencies I will be submitting a copy of this correspondence to seeking help in this matter.

Better Business Bureau
Office of Insurance Regulation
State of Florida Consumer Affairs
Florida Department of Agriculture and Consumer Services
Federal Trade Commission
BadBusinessBureau.com
Credit Collection Services

Regards,

William
Homosassa, Florida
U.S.A.

Click here to read other Rip Off Reports on Liberty Mutual

This report was posted on Ripoff Report on 04/19/2006 06:22 PM and is a permanent record located here: http://www.ripoffreport.com/r/Liberty-Mutual-Insurance/Boston-Massachusetts-02116/Liberty-Mutual-Insurance-ripoff-negligent-company-fails-to-cancel-policy-then-bills-you-an-187565. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 11Consumer 1Employee/Owner
Updates & Rebuttals

#1 UPDATE EX-employee responds

Typical Liberty Mutual actions taken..

AUTHOR: Exlibertyemployee - (U.S.A.)

Liberty Mutual will try everything to maintain a policy and will ignore cancellation notices on purpose by claiming that they never received it.

As an ex-employee of Liberty Mutual, I can assure you that the only thing that Liberty Mutual is interested in is the mighty dollar. They treat their employees like crap and nepotism is rampart within the company. So, it comes as no surprised that their clients are also treated like crap. When I had an argument with my manager about putting clients first, I was told that I should be looking out for the best interest of the company, afterall, it was Liberty Mutual who was paying my salary. Liberty Mutual's slogan should be, "our policy? Not our responsibility!"
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#2 REBUTTAL Individual responds

Thank you for your message!!

AUTHOR: William - (U.S.A.)

Hello,

Thank you for your message. I did not know about the laws you made reference too but it does make sense. I also sympathize with your own situation.

After filing the several complaint letters against Liberty, I had received a call from them. They did not want to fix the problem until after they received a copy of my insurance policy from my other provider, even though I had told this new representative I had already told them on numerous occasions by mail and phone to cancel their policy before it would take effect. They were not very helpful or apologetic. They were more concerned with having the BBB compliant dropped than helping me, but it would now appear that they have finally resolved the issue and have sent me a letter stating that they have removed any payment due requests and negative credit reports against me. Again with no apologies as to their causing this mess in the first place, just a simple form letter.

As you can assume I will never use nor refer this company to any individuals for insurance. I give them a failing grade on all issues. I'm just glad I never had to place a claim for an accident against my policy. I can just imagine how well that would have gone.

Thanks again,
Regards
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#3 Consumer Comment

I agree with William

AUTHOR: Brandi - (U.S.A.)

I am an insurance agent for Nationwide in Texas.

Let me start by stating(for all the know-it-alls above) that is it against the law for an insurance company to charge a customer any amount past their renewal date if they did not pay the renewal premium. Meaning, if the policy renewed on 10/1 and there was a ten day grace period and you did not pay w/in the grace period then BY LAW they cannot charge you for those ten days, they have to cancel the policy back to the renewal. Unfortunately, most consumers do not know this. This is for the people that felt William should have read his policy.

Guess what, if you read your policy you DO NOT have to give written notice NOT to renew your policy. Just don't pay the renewal. Most insurance companies take nonpayment of renewal as notice of cancellation(the ones following the law). I had a situation where I wrote home and auto insurance for a couple that had been with Liberty Mutual for 20 some odd years. I personally, from my office, had the policyholder sign and fax the appropriate documentation to cancel(signed notice and dec page showing new policy effective date etc) to the # we were given by the Liberty Mutual rep. This was in Oct of 2004. She called me a month later stating she got a bill from Liberty. I conferenced her in w/Liberty Mutual and we talked to someone who said they never received the notice. I made her aware that it was nonpay of renewal and they can't charge her for anything. She t/t a supervisor and agreed with me. I told her just in case why don't I go ahead and send you proof that the policyholder had coverage elsewhere as of that date and the original written cancellation notice she signed along w/the confirmation that it went through. I stayed on the phone w/the Supervisor until she confirmed she had the (2nd) fax. Guess what? Three months later, My customer gets a collection notice from a third party claiming she owes Liberty Mutual.


To make a long story short,it is now 2 1/2 years and many,many phone calls and faxes later, we just got Liberty Mutual to correct their error. So, William, I completely symphathize with what they have put you through. It is tactics like this that give the insurance industry a bad name. I don't know if this story helps, but I wanted anyone who feels William didn't do what he was supposed to, to know that it wasn't his fault and this seems to be a common practice of Liberty Mutual billing department. I read this thought "what a coincidence". There is no coincidence involved. This is due to poor customer service and record-keeping on Liberty Mutual's part.

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#4 Consumer Comment

Other issues

AUTHOR: R - (U.S.A.)

William, I agree with Robert so you can go ahead and attack me too. He really didnt say anything that should have offended you, the real issue might have something to do with your temper.
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#5 Consumer Comment

Other issues

AUTHOR: R - (U.S.A.)

William, I agree with Robert so you can go ahead and attack me too. He really didnt say anything that should have offended you, the real issue might have something to do with your temper.
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#6 Consumer Comment

Other issues

AUTHOR: R - (U.S.A.)

William, I agree with Robert so you can go ahead and attack me too. He really didnt say anything that should have offended you, the real issue might have something to do with your temper.
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#7 Consumer Comment

Other issues

AUTHOR: R - (U.S.A.)

William, I agree with Robert so you can go ahead and attack me too. He really didnt say anything that should have offended you, the real issue might have something to do with your temper.
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#8 Author of original report

Unrealistic comment

AUTHOR: William - (U.S.A.)

This is an idiotic comment that one has to fully read their policy to cancel a renewal. Bull! There were two written requests sent to them. Even if it was to this so called "incorrect dept" it should have been forwarded to the appropriate dept, the customer should have been notified to contact some other dept or to verify if they do wish to cancel their renewal policy. Instead they opted to disregard this request. But they did make a comment or note on this policy about this request. This is just plain bad business. The correspondence was written to "liberty mutual insurance" which is the policy issuer period. Secondly I had called their customer service dept phone number twice to have the renewal policy canceled which also was not done. Just another idiotic comment from an unrealistic know it all...
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#9 Author of original report

Unrealistic comment

AUTHOR: William - (U.S.A.)

This is an idiotic comment that one has to fully read their policy to cancel a renewal. Bull! There were two written requests sent to them. Even if it was to this so called "incorrect dept" it should have been forwarded to the appropriate dept, the customer should have been notified to contact some other dept or to verify if they do wish to cancel their renewal policy. Instead they opted to disregard this request. But they did make a comment or note on this policy about this request. This is just plain bad business. The correspondence was written to "liberty mutual insurance" which is the policy issuer period. Secondly I had called their customer service dept phone number twice to have the renewal policy canceled which also was not done. Just another idiotic comment from an unrealistic know it all...
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#10 Author of original report

Unrealistic comment

AUTHOR: William - (U.S.A.)

This is an idiotic comment that one has to fully read their policy to cancel a renewal. Bull! There were two written requests sent to them. Even if it was to this so called "incorrect dept" it should have been forwarded to the appropriate dept, the customer should have been notified to contact some other dept or to verify if they do wish to cancel their renewal policy. Instead they opted to disregard this request. But they did make a comment or note on this policy about this request. This is just plain bad business. The correspondence was written to "liberty mutual insurance" which is the policy issuer period. Secondly I had called their customer service dept phone number twice to have the renewal policy canceled which also was not done. Just another idiotic comment from an unrealistic know it all...
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#11 Author of original report

Unrealistic comment

AUTHOR: William - (U.S.A.)

This is an idiotic comment that one has to fully read their policy to cancel a renewal. Bull! There were two written requests sent to them. Even if it was to this so called "incorrect dept" it should have been forwarded to the appropriate dept, the customer should have been notified to contact some other dept or to verify if they do wish to cancel their renewal policy. Instead they opted to disregard this request. But they did make a comment or note on this policy about this request. This is just plain bad business. The correspondence was written to "liberty mutual insurance" which is the policy issuer period. Secondly I had called their customer service dept phone number twice to have the renewal policy canceled which also was not done. Just another idiotic comment from an unrealistic know it all...
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#12 Consumer Comment

You should have read you insurance papers.

AUTHOR: Robert - (U.S.A.)

Your first mistake was sending the correspondace to the billing address. They handle only payments.

Most bills clearly state that only payments are to be mailed to the billing address. Had you looked through your policy there should have been an address to send correspondance to.

Was there a reason why you did not look through your insurance papers to determine what LM cancellation procedure and policies were? It could have avoided all this turmoil.

Seems the negligence was partially on your part; Although LM could have been a bit more helpful in trying to rectify your error.
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