Based on the customer complaints received by the Better Business Bureau regarding Colonial Penn, it appears that there are several issues that customers have faced with the company. The most common complaints include problems with products/services, difficulty resolving issues, and poor customer service.
Better Business Bureau (BBB) Complaint & Review Process
The Better Business Bureau (BBB) is a non-profit organization promoting marketplace trust by providing consumers with business information. The BBB collects and maintains information about businesses, including customer complaints and reviews, and uses this information to assign ratings to businesses based on their performance.
The BBB also offers dispute resolution services to help consumers resolve complaints against businesses. When a consumer files a complaint with the BBB, the organization contacts the business and attempts to mediate a resolution between the two parties.
How to Write a Complaint to the BBB
If you have an issue with a business and would like to file a complaint with the BBB, you can do so online through their website. Here are the steps involved:
- Visit the BBB website at www.bbb.org.
- Search for the business you want to file a complaint against.
- Click on “File a Complaint” on the business’s profile page.
- Provide details about your complaint, including what happened, when, and what you would like done to resolve it.
- Submit your complaint.
Once your complaint has been submitted, the BBB will contact the business in question and attempt to mediate a resolution between you and them. Depending on your issue’s complexity, the process can take several weeks or months.
Filing a complaint with the BBB can effectively resolve issues with businesses not responding to your concerns. However, it’s important to note that not all complaints will result in a satisfactory resolution. The BBB cannot force a business to take a specific action but can provide information and mediation services to help you resolve your issue.
Colonial Penn BBB Customer Complaints
Most consumer dissatisfaction centers around the Colonial Life 995 life insurance plan.
Problems with Product/Service
Some customers have reported problems with Colonial Penn’s products or services. One customer on page 1 stated that they were having a hard time believing the A+ rating given by the Better Business Bureau due to their experience with Colonial Penn’s business practices.
Example Complaint:
| Date | Reason | Status | Complaint |
|---|---|---|---|
| 10/15/2022 | Problems with Product/Service | Resolved | “Based on my experience, and all of the reviews I’ve read, I have very little faith that I’ll see the money I am owed any time soon.” |
Difficulty in Resolving Issues
The most common complaint against Colonial Penn is difficulty in resolving issues. Many customers have reported delays in receiving funds owed to them after a loved one’s passing. Despite multiple calls and complaints, some customers have waited for months without any resolution to their issues. Others have reported being harassed by Colonial Penn through postal mail and phone calls even after requesting them to stop.
Example Complaints:
“I have called 10 times requesting the funds owed to me with no resolution to the problem. Many people have told me that a claim has been filed and there is nothing else they need from me (I.e., information). One lady said I needed to file a claim online. I have asked to speak to a supervisor with a response telling me they are on the phone with another customer.” (Page 1)
“Despite calling Colonial Penn eight times over a period of eight months, they were given conflicting information and told to wait for 7-10 business days each time they called.” (Page 4)
Poor Customer Service
Customers have also expressed frustration with the lack of communication from Colonial Penn representatives. They report being given conflicting information or being told that their issue is being resolved when it is not.
Example Complaint:
| Date | Reason | Status | Complaint |
|---|---|---|---|
| 10/15/2022 | Problems with Product/Service | Resolved | “I have called 10 times requesting the funds owed to me with absolutely no resolution to the problem. Many people have told me that a claim has been filed and there is nothing else they need from me (I.e. information). One lady said I needed to file a claim online. I have asked to speak to a supervisor with a response telling me they are on the phone with another customer.” |
BBB Customer Reviews of Colonial Penn Life Insurance
Based on the customer reviews of Colonial Penn Life Insurance found in this Better Business Bureau document, it appears that many customers have had negative experiences with the company.
| Issue | Description |
|---|---|
| Difficulty getting accurate information about policies and payments | Customers have reported issues with Colonial Penn’s customer service and billing departments, including difficulty getting accurate information about their policies and payments. |
| Delays in receiving payouts after a loved one’s death | Some customers have reported delays in receiving payouts after a loved one’s death. |
| Unexpected rate increases or changes to policies without proper notification | Other customers have expressed frustration with unexpected rate increases or changes to their policies without proper notification. |
| Accusations of being a scam or engaging in false advertising | Some customers have even accused the company of being a scam or engaging in false advertising. |
One common issue customers report is difficulty getting accurate information about their policies and payments. For example, one customer wrote: “I paid my bill on time in January & then I found out they sent the payment back! So I called & spoke to two different people to find out why (because I wasn’t informed by anyone that my money was being returned! So that made me be behind on my Insurance!).”
Another customer reported similar issues with Colonial Penn’s billing department: “After You get it set up and Make Your Payments, they claim they didn’t receive the payments…and Demand Large Payments or They will Cancel Your Policies!!”
In addition to billing issues, some customers have reported delays in receiving payouts after a loved one’s death. One customer wrote: “My grandmother passed away in Oct 2021…she had 2 life insurance policies with Colonial Penn. We just NOW received the checks for those policies.. today…7 months later.”
Other customers have expressed frustration with unexpected rate increases or policy changes without proper notification. For example, one customer wrote: “This insurance offered on the commercial is a scam. They guaranteed my rate. I paid 6 months in advance for 3 years, then they went up to $200 a month without notice!”
Some customers have even accused the company of being a scam or engaging in false advertising. One customer wrote: “This company needs to be investigated for FALSE ADVERTISING & making FAKSE CLAIMS.” Another wrote: “This company is the most unmoral company I’ve ever seen.”
Conclusion
The complaints against Colonial Penn suggest that the company needs to improve its communication practices, customer service, and product/service quality to better serve its customers. Customers are frustrated with delays in receiving funds owed to them and a lack of communication from representatives. Some customers have also reported being harassed by Colonial Penn through postal mail and phone calls even after requesting them to stop.
To address these issues, Colonial Penn may need to invest in better training for its representatives, improve its claims processing procedures, and enhance its communication channels with customers.
