Michigan AG Accuses DM Firms of Bilking Seniors

Three direct marketing companies have been sued by Michigan Attorney General Jennifer M. Granholm for allegedly bilking the state’s seniors.

The firms have been served with notices of intended action in which they were told that they had violated the Michigan’s Consumer Protection Act.

According to Granholm’s office, MedPlan Inc., of Toronto, Canada, called consumers offering to send them information on the “MedPlan plan,” a membership program costing $349.

The callers requested bank account numbers for “verification purposes,” and did not disclose that they might be used for withdrawing the $349, the state alleges. It adds that consumers have been unable to obtain refunds.

“Taking advantage of unsuspecting Michigan citizens in this fashion is bad enough,” said Granholm in a statement. “But taking advantage of vulnerable seniors, many of whom are on a fixed income, is just plain reprehensible.”

Gramholm accused United States Senior Services Inc., Dallas, and National Association of Retired Persons, San Antonio, TX, of deceptive marketing via direct mail.

The firms send mailing pieces offering benefits to cover funeral expenses, falsely implying “government approval or affiliation,” Granholm alleged.