Customers say insurance company refuses to accept payments

COBB COUNTY, Ga. — Georgia Insurance Commissioner Ralph Hudgens has sent a team of examiners to the Texas headquarters of Fred Loya Insurance, consumer investigator Jim Strickland has learned.

The investigation was sparked by complaints that the company's local offices are no longer accepting clients' payments.

"This only popped up last week and we're already in there. So we're extremely concerned," said Director of Insurance Products Steve Manders. %

%

"Why would any company refuse to take my money if I was a client?" Strickland asked.

"I don't know. I have no idea," Manders replied.

Deron Fambro contacted Strickland after he tried to pay his monthly premium in person.

"They told me they're not accepting no payments, cash or by card. They let my insurance lapse," Fambro said. He complained that the company is only accepting payments made by mail directly to its Texas headquarters.

"Are you angry?" Strickland asked.

"Angry's not the word. I don't even know the word for it," Fambro said.

"We want companies to right business in Georgia and serve consumers, but if a company isn't doing what they should be doing then we're going to take action," Manders said.

Manders says Loya has suffered loses of late and has tried to make up for it with a steep price hike.

"They filed for a 45 percent rate increase. We are rejecting the filing," he said.

Strickland contacted the company's local manager, and its chief financial officer in El Paso, Texas. No one responded to his requests for comment.

Manders says examiners should know in a few weeks about the company's state of affairs.

Cox Media Group