Complaint Review: Primerica

C:

As a former PFS'er I can tell you that the clause they use has nothing to do with not being a financial planner, financial advisor, etc. The key phrase they intentionally inserted was "... whose compensation is unrelated to sales commissions" (or something to that effect).

In other words, whatever one calls them, their compensation is directly related to sales commissions. They are not fee-based or fee-only advisors. They only make money via commissions on sales they make.

Certainly, they would never have allowed the Personal Financial Analyst title if your interpretation of that disclosure were correct. It was a clause inserted by the OGC to ensure that there was no misrepresentation of how these reps were compensated.

Now, all that said, reps were discouraged from using any of those titles because of the ongoing controversy surrounding titles in this industry. Many, many reps throughout the industry call themselves financial planners without having earned any credentialed marks. Those with the CFP mark cringe at the idea. The powers that be (or were) at Primerica decided to stay out of that conversation entirely and designed their own proprietary title of Personal Financial Analyst. They would not print any other title on a business card unless it was a rank such as RVP, RL, etc.

For the most part the plan worked. It kept agents from using in other titles. However, as I was leaving the company there was a move underway to discontinue the use of the PFA title because of a conflict with another group who used it. My understanding is that they would revert back to ranks as titles or they could use "Agent" or "Registered Representative" (if security licensed.) I don't know if they ever did that. If they do you will find agents who although their business card says something different will be calling themselves financial planners, advisors, consultants and so on. It has happened in many, many firms across the industry. Nobody seems to want to be identified as a Life Insurance Agent anymore.

It sounds as if Nick has had a thoroughly brainwashed in only 18 days. I have read the disclosure on the Primerica web-site and agree with the above rebuttal that it specifically states Primerica reps are not financial advisors. I hope Nick has purchased a good errors and emissions policy if he continues to represent himself as a financial advisor.

Nick,

I'm confused now. You claim that Primerica reps are financial advisors (your words) but on Primerica.com, in the disclosures section, there is a sentence that says:

"Representatives are not financial planners, investment advisors, financial consultants or other specialists who provide financial advice and whose compensation may be unrelated to sales"

It sounds like what you are posting is in diametric opposition to the truth.

AMERICAN EAGLES AND WORMS.

I also applied to Primerica, on September 20, 2002 completed the Independent Business Agreement (IBA) Application, and paid $199.00 to cover the costs of 40 hours class training (instructor lead class) and the training materials, plus the cost of Georgia State Department of Insurance License. In this $199.00 I see only costs for my training and licenses, and I do not see where the rip-off is!

It took me about three hours from the signing of the IBA to the moment I stepped into the classroom. I was very fortunate to be able to move so fast! The following weekend I finished the 40 hours training, in top of my weekly 50 hours of work at the job that, for the moment, pays my bills. This is one of the great features of the IBA you work part time until your business creates enough income to change to full time.

Now I am going to take every shoddy statement made, in italics, and prove that this fellow, Wayne of Alsip, Illinois does not know what he is talking about!

CLAIM 1-Primerica called us on our phone and wanted to know if we were interested in a job.
The fact that they called you on your phone does not make you some kind of victim since that is why you have a phone to be called on by other people. If you do not want to be called by other people remove your name from the phone book, or ask the phone company not to allow incoming calls!
Your failure #1: you failed to understand why you have a home-phone, and to protect the privacy of your phone number! Your fault!

(Primerica) wanted to know if we were interested in a job Obviously you said yes because you wanted to say yes! However, since you are capable to file a deceiving complaint on the Web you must be savvy at cruising the Web. It is your fault if you did not obtain as much information about Primerica before you went to the presentation meeting!
Your failure #2: you failed to investigate a company before attending their meeting, then make your decision to attend, or excuse yourself from the meeting! Your fault!

CLAIM 2- My wife and myself attended one of their "get togethers" to recruit future workers to see what the job was.

Primerica does not offer jobs, and it has no workers! They have FINANCIAL ADVISORS, CERTIFIED BY THE STATE CERTIFICATIONS EXAMS, and FEDERAL / TRADE AUTHORITIES SUCH AS NASD! THE SECURITIES LICENSING IS IDENTICAL WITH THE ONE THE STOCK BROKERS GET WHEN EMPLOYED BY MERRYL LYNCH, CHARLES SCHWAB, etc.

PRIMERICA offers opportunity to build your own business while training you on how to do it, and providing you with all the products, and back-office infrastructure to support you to become a success!
Your failure #3: It is entirely your fault for failing to listen carefully to the resentation! Your fault!

CLAIM 3- They talked for over an hour on very old investing/mortgage information and common sense that was a waste of our time.

The presentation is in standard format and covers the corporate CitiGroup, and Primerica, and the products distributed. One of them is the Mortgage Product. I have owned homes throughout my life and I still learned exciting features about Primerica Mortgage.
Your failure #4: you were bodily present but not mind present! Your fault!
Your failure #5: you understood very little about the mortgage product!! Your fault!
Old mortgage information? How would you describe new mortgage information?
Also, There is just a short passage in the presentation about investment and only as a reference to the completeness of your financial portfolio.
Your failure #6: was a waste of our time If you felt that it was a waste of time you should have been out the door, as soon as you reached to that conclusion! They did notlock the doors to force you to listen? YOUR FAULT!

CLAIM 4- They immediately separated everyone and threw some papers in front of us and told us to sign them so we could start making "big money".

They immediately separated everyone.
Yes, that happens because these meetings are open for everyone, visitors, and beginners, and advanced. The non-beginners may feel they need of a refresher of an actual presentation session, new pointers, etc. The separation is necessary because after that everyone has a different, defined activity.

The new commers complete the IBA, a very specific and unique activity. It takes about an hour for the meeting leader to coach everyone, especially when you have to enter your past five years of employment and residence addresses.

Your following failures are indicative that you are prone to complete and sign documents you do not read or understand. That is your fault!

Your failure #7: The IBA book, is big and made out of about six pages of questions. They have to answered, and in some detail, to turn IBA in a valid application. Your claim that you did not know what you were doing is an act of dishonesty. All you had to do is ask questions! Dishonesty not only to yourself, but also to all the people whom you have deceived by filing the complaint herein! Your dishonesty!
Your failure #8: and threw some papers in front of us and told us to sign them
I do not about you, but if some one will throw papers in front of me they will get them back in their faces instantly. An embarrassing, infantile attempt to pose as a victim!
They wanted you to make big money. They would be the nicest people on Earth not throw paper at you. This is another act of dishonesty on your part! Your dishonesty!
Your failure #9: told us to sign them The only statement I can make about being told to sign will damage my self-respect, and you are definitely not worth that, and therefore I would not make such a statement!
Your failure #10: The papers you signed are pages in a book entitled in big letters, black on white, Independent Business Application. I estimate the bold, black font on front cover at approximately font size 24. The book title did not read job application. An MD working out of his private office also has a job! He is self-employed, just like a lawyer, CPA, Real Estate Broker, etc. Most of them have Independent Businesses, and these are their jobs! Primerica is not responsible for you not understanding what you read, not knowing to ask if there is a job that pays per hour, or if this is a "performance paid job"!
Page 6, top part, is very clear: "...I am an independent contractor, and not an employee of Primerica Financial Services..." Your fault for not knowing to read and understand what you read!

CLAIM 5-After I returned home and had time to look over their brochures and the papers they gave us to sign I had changed my mind.

and the papers they gave us to sign
Your failure #11: it shows that your initial statement at CLAIM #4 threw some papers in front of us and told us to sign was not in fact an act of pressure to sign on the spot since the above statement says that you were allowed to take the papers they gave us to sign to your home. Everyone is allowed to take the IBA form at home. Many people do not remember the addresses of employers of 5 years ago, and they need to take the forms home to enter correct data! Your dishonesty!

CLAIM 6: My credit card was charged $199.00 I called them up and asked them why I was charged for something I did not receive?
My credit card was charged $199.00
On the inside of the front cover is the CREDIT CARD AUTHORIZATION FORM, titled in black, bold font size approximately 18 - 20! This is the first page you completed in the IBA book. The first line under the Expiration date and Cardholder Name line is the following paragraph, in exact words:
I authorize Primerica to use my credit card for payment of the appropriate fees paid to the Primerica Regional Processing Center for processing my Independent Business Application and state license(s) / appointment(s).
My total authorized charge will not exceed: $ ______

Cardholder signature______________ Date: ___________

Your failure / dishonesty #12: Not only that it was written why you were requested the credit card info, but also you filled in all the above info, and signed at the bottom. Your dishonesty!

why I was charged for something I did not receive? Another act of dishonesty by faking genuine surprise and the innocence of a 9 year old! You have signed the authorization consent above, and paid $40 for processing for the IBA, which requires enormous infrastructure support. Pretending surprise is again: Your dishonesty!

Your failure #13: may be not all the wireless companies do it, but many charge you one month ahead before you received any service from them. The same thing applies for the mortgage, apartment rent, car installments, etc. You pay to all of them before you receive service! Ignorance is our fault!

Your failure #14: In the IBA book, page 6, center of the page, black, bold letters, font 14-16, the underlined title: REFUND POLICY:
In exact words: My Business Acceleration System (BAS) is refundable upon written request to: LICENSING refunds, Primerica Family Headquarters

If anyone has been ripped off by this scam, you need to contact Donna Guilmette; 800 666-7837 x8514. I got all my money back.

Primerica processed a refund of $159 on 08/16/02 and a refund of the remaining $40 on 09/10/02. Both refunds were applied to your credit card. Please be advised that credit card refunds may take as much as 2 billing cycles to reflect on your monthly billing statement. If you have any questions, please post your questions and I will answer them for all to see.

Hey man you will get your refund of you 199 as soon as the company makes sure you haven't attended the Pre-licensing classes that part of the 199 covers and just to let you know it may take 4-6 weeks i don't know why it takes this long but it may.

Ty