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Business Blog: Scam



AG settles with health card provider
Posted: 08/10/2007
Joseph M. de Leon

Peoples Benefit Services, Inc., a provider of discount prescription, health and dental cards, reached a settlement with the state's Consumer Protection Division, the Maryland Attorney General's office announced today.

The Pennsylvania-based company denied accusations, but agreed to limit its future advertising and pay consumers restitution.

The discount cards, which cost $5.95 per month, promised consumers discounts off of the regular price of medical, dental and/or prescription services. Among the Consumer Protection Division's allegations:

  • Peoples Benefit used solicitations to falsely claim an endorsement by or affiliation with the Social Security Administration
  • the company made it seem as if it was offering health insurance for only a limited period of time or to a limited set of consumers;
  • sales reps misled consumers about the savings they could achieve by joining the plan

    The company agreed to pay $100,000 in restitution and costs. The settlement required Peoples Benefit to:

  • stop making it appear as if they are approved by or affiliated with a government program.
  • agree to not use names, such as Senior Security Inc, whose initials spell "SS," "SSI" or "SSA."
  • stop portraying the discount card as an insurance product
  • quit using a false sense of urgency to persuade consumers to buy
  • stop making claims the card will save members money or state the basis for the claim



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  • Scam: Consumer Protection info, new lead
    Posted: 07/20/2007
    Joseph M. de Leon

    Chief Kim Dine of the Frederick P.D. sent out an e-mail last night advising residents to call the state attorney general's office with complaints about frauds. I didn't get it until after press time so I didn't include it in today's alert.

    Larry Munson
    Office of the Attorney General
    Consumer Protection Division
    301-791-4780

    Thanks to the Scam Alert, I've gotten several e-mails and phone calls about scams that are hitting Frederick residents.

    Many were from people who were the target of advance fee, a.k.a. Nigerian scams. I'm also following a lead about a local real estate-related scam.

    Check back for more details.

    ____________________

  • Scam



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  • Know about a scam? The Frederick News-Post’s Joseph M. de Leon searches out scams to tell you about them before you get hit. Contact him at 301-662-1177 ext. 283, or jdeleon@fredericknewspost.com.

    Past scam alerts can be found here.


    Scam — chain letter update
    Posted: 07/10/2007
    Joseph M. de Leon

    After doing some research, I discovered the Better Business Bureau in Phoenix has a  file on a company linked to the chain letter scam reader Ed Trey told me about yesterday.

    The letter Trey received Saturday instructs him to buy mailing labels from Phoenix-based Quality Entrepreneurial Services Inc. as part of a scheme to make hundreds of thousands of dollars in a matter of months.

    Read details in tomorrow's FNP

    ____________________

  • Scam



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  • Know about a scam? The Frederick News-Post’s Joseph M. de Leon searches out scams to tell you about them before you get hit. Contact him at 301-662-1177 ext. 283, or jdeleon@fredericknewspost.com.

    Past scam alerts can be found here.


    Scams: Chain letters and fee getters
    Posted: 07/09/2007
    Joseph M. de Leon

    I have two new scams to report. One involves duplicating then mailing a list and the other seems to be an unsolicited addition to a credit card.

    Astute reader Ed Trey of Frederick received a letter in Saturday's mail that asked him to add his name to a list of six recipients, make hundreds of copies and mail them in hopes of getting rich.

    How is he supposed to get rich? Check this week's FNP.

    The other may not be a scam exactly — I'm still doing my research. Keen reader Donald Foster received two notices from Account Care of Kansas City, Mo. about a rate hike.

    Problem is, he doesn't remember ever signing up for the credit protection service. Neither do the half dozen or so neighbors with whom he spent July 4. The letters were a hot topic during their cook out.

    The Kansas City Better Business Bureau reports Account Care has an unsatisfactory record. Here's why.

    How does Account Care respond to the BBB's unfavorable rating? What about the notices Frederick residents are getting?

    You know the drill. Join me later this week in the FNP for the latest Scam Alert.

    Update: July 18, 2007 4:52 p.m.
    After doing some research, I found out why Donald Foster doesn't remember signing up for the Account Care service — his wife authorized it.

    This from Samuel Wang, vice president, public affairs, Citigroup Global Consumer Group:

    "It is standard practice for Sears card customers to be enrolled into the AccountCare Program based upon their consent. Once a customer provides consent, he/she is initially sent materials explaining the specific details and guidelines of the program, including how to reach us with questions or concerns, as well as ongoing updates on changes in the terms of the program. Regarding the customer in question on December 4, 2006, Mrs. Foster did in fact accept enrollment in the AccountCare program and the program fulfillment associated with this specific enrollment."
    Wang wouldn't speculate about Foster's neighbors' notices and is working to review complaints at the Better Business Bureau.

    ____________________

  • Scam



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  • The Maryland Department of Agriculture is responsible for ensuring fairness in the marketplace by verifying the accuracy of weighing and measuring devices, including fuel pumps.

    Consumers who feel they are not getting an accurate amount of fuel can report concerns: 410-841-5970 during regular business hours.

  • ON THE WEB: has information for finding low gas prices and file complaints The Maryland Comptroller's Office

  • Is hot fuel driving up gas prices?
    Posted: 07/03/2007
    Clifford G. Cumber

    So-called "hot fuel" could mean you're not getting your money's worth at the pump.

    Hot fuel is the term for gasoline in storage tanks with a temperature of more than 60 degrees -- at which point the liquid expands and you may not get the full measure you paid for.

    In mid-July, Maryland Comptroller's Office agents and weights and measures inspectors from the state's Department of Agriculture will begin teaming up to ensure that gas is being stored at regulated temperatures.

    “With gas prices continually rising, consumers deserve to know whether they are getting what they pay for before they hit the road," said Comptroller Peter Franchot.

    Ag Secretary Roger Richardson said no long-term inspection data exists anywhere in the country right now.

    MDA inspectors, will monitor and record data on the temperatures of storage tanks around Maryland over the next financial year to verify fuel is being kept at proper temperature.

    After joint analysis of the collected data, the Comptroller’s Office will issue quarterly interim status reports. The first report will cover July through Sept. 30.

    “This partnership will not only help protect consumers here in Maryland, but add to the information available to inspectors nationwide,” Richardson said.

    This is the latest in an overall effort by the Comptroller's Office to combat high prices at the pumps.

    Franchot recently announced he was calling on oil companies to explain how and why they zone price -- the practice of establishing different prices for retailers according to certain criteria kept secret by oil companies.

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  • Scam
  • Consumer



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  • If you believe you’re the target of a similar scam:
  • Call the Consumer Protection Division hotline, 1-888-743-0023, to see of others have complained or to get help filing a complaint. All complaints must be made in writing.
  • File a complaint with the Consumer Protection Division of the Office of the Maryland Attorney General online at www.oag.state.md.us
  • Mail a complaint to: Consumer Protection Division 200 St. Paul Place Baltimore, MD 21202

  • Scam — unauthorized directory listing
    Posted: 07/02/2007
    Joseph M. de Leon

    Watch out for invoices for products and services that were never authorized. A New York City-based company claims a Frederick business agreed to buy an ad on its online listing of businesses.

    This is how the scam works:
    An AmeraLink representative calls to make the pitch: pay $467.26 for a years worth of online advertising at www.ameralinkcorp.com.

    If you decline, that’s when the trouble starts. An invoice and collection notices follow.

    The Better Business Bureau has this to say:

    "Based on BBB files, this business has an unsatisfactory record with the Bureau, because there is a pattern of complaints, and the business has not corrected the underlying reason for the complaints. Consumers report they did not authorize such services and AmeraLink is unable to substantiate the bill."

    Almost 50 complaints doesn't look good. Read the BBB's full report.

    Check out the scam later this week in the FNP.

    ____________________

  • Scam



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  • Eager sales means pitch fails
    Posted: 06/26/2007
    Joseph M. de Leon

    This isn't exactly a scam — more of an overzealous sales staff.

    A representative of Fredericksburg, Va-based Absolute Security has been going door-to-door in Frederick selling ADT security systems.

    That could be a cool story. Driving nearly two hours one-way to pitch motion detectors and sirens. I thought either business in Fredericksburg is so lousy, sales guys have to cross state lines, or business in Frederick is so good, it draws them like moths to a computer screen.

    It's actually both, but here's why I'm writing about it: I got complaints those eager security guys like to refer the "rash of break-ins" in the neighborhoods they work.

    When a Frederick police officer and an FNP reporter heard the pitch, they looked up their neighborhoods on the SpiresGIS Crime Map. No rash found.

    Lesson learned: do your research before pitching a sale.

    ____________________

  • Scam



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  • Business Bloggers
    Clifford G. Cumber
    Business Editor
    ccumber@newspost.com
    301-662-1178, ext. 263
    Joseph M. de Leon
    Business Reporter
    jdeleon@newspost.com
    301-662-1178, ext. 283
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