Attorney General's News Release

April 5, 2002

Nixon gets TRO against telemarketers billing seniors $349 for "free" 30-day trial membership in health discount plan

Jefferson City, Mo. — Attorney General Jay Nixon today obtained a temporary restraining order against a Canadian-based telemarketing business that charged Missouri seniors $349 for what was represented as a free 30-day trial membership to receive medical and health-related discounts.

Nixon said that telemarketers from MedPlan Inc. called Missouri consumers to offer membership in the "MedPlan Plan," in which the consumers would receive discounts and savings on chiropractic, hearing, vision and dental services and products, discounts on pharmaceutical products, and other medical and health-related services. MedPlan would offer to send the consumers — many of whom were seniors — a packet of membership materials as part of a 30-day no-cost trial period. If they declined the membership, they were told, they would receive a full refund.

"MedPlan employees asked consumers to provide bank account information, ostensibly for verification," Nixon said. "The rude surprise was that MedPlan would use that information to make an unauthorized withdrawal from the account almost immediately, then refused to provide dissatisfied consumers with refunds. This TRO will stop the unauthorized withdrawals, and we'll be asking the court to issue an injunction ordering MedPlan to pay restitution and penalties as well."

The TRO issued by Moniteau County Circuit Judge Mary Dickerson prohibits MedPlan and its employees from obtaining Missourians' bank account numbers through telemarketing calls or from making withdrawals from the accounts without first obtaining written consent and authorization from the consumer. The lawsuit was filed in Moniteau County because one of the Missouri victims resides there.

Nixon said MedPlan provided several different addresses to indicate its place of business.

"MedPlan gave addresses in Florida, New York and South Carolina, but all of those appear to be mail-handling facilities that serve only as facades," Nixon said. "From what we've learned, MedPlan is registered as a Delaware corporation but appears to be operating out of Toronto. The international border is not going to serve as a cover for illegal activities that rip off Missourians."

A hearing on Nixon's request for preliminary and permanent injunctions is scheduled for April 17 in Moniteau County. Nixon then will ask the court to order MedPlan to pay restitution and penalties.

Consumers can register either online or by calling toll-free 1-866-NOCALL1 (1-866-662-2551.) The next deadline for signing up for the No Call list is May 1. People who register their numbers by that date will be protected under the next quarterly list that goes out July 1.

Missourians already on the No Call list may file complaints about telemarketing calls by downloading a complaint form form or by calling the toll-free number.

View legal actions against telemarketers

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818