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Join Date: Feb 2011
Location: Atlanta, GA
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The Scooter Scam

01/15/2013 7:32 PM

There is a large provider of power chairs and scooters that advertises on TV that you can get a power chair for free: Medicare will pay for it, they say . My dad was scammed by this large company. Here is a quote from their brochure: "You won't have to do a thing. We're experts in this area and 96% of the claims we submit are approved." (The bolding is their's, not mine)

Problem is, their business is going downhill because medicare has been clamping down on fraud, thus putting them nearly out of business. They had to pull out of the lucrative Houston market because, in that market, fraudulent claims don't get payed.

Their basic business model has several parts. One part is well-described in articles like this. This is classic Medicare fraud, delivering ultra high profit products to people who do not qualify for them. For medicare purposes, a typical power chair purchased by the company for $800-$1000 is sold for $8400 or so. A few of these go to people who need them. In 2004, medicare paid eight claims out of 500 submitted by the company in the Houston market. So the company pulled out of the Houston market. Why do business where you can't get away with it?

When my dad needed a power chair, he unfortunately picked The Scooter Store as a vendor. He was in dire need, so paid cash to expedite the order, having been promised that Medicare would reimburse him. So they upsold him. Instead of delivering the standard duty model (which was plenty big enough for his 115 lb stature) they delivered a heavy duty model, incorrectly stating that he'd get longer range (just the opposite is true). Medicare will not cover a heavy duty chair for a light duty person, understandably. But the Scooter store got its money up front.

My dad passed away in November, leaving this essentially unused power chair to be disposed of. Although it had only one month's use on it, it was worth just a few hundred dollars, because everyone knows you can get one "for free". A local vendor said, "Heck I can buy a brand new one from my supplier for $800." After a long, difficult negotiation, The Scooter Store took back the chair and provided a partial refund.

Now, a month later, a creative bill has arrived at my father's address. They are billing for the full retail amount again. They have have long since picked up the chair. So I am reporting this to the FBI, to senators Corker, Kohl, and Blumenthal, etc.

I'll let you know how things go. But if you or a loved one needs a power chair, don't get involved with The Scooter Scam.

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#1

Re: The Scooter Scam

01/15/2013 8:15 PM

Good luck.

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Guru

Join Date: Jul 2008
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#2

Re: The Scooter Scam

01/15/2013 8:33 PM

Thanks for sharing the info & warning.

I once had a problem with very different details but a somewhat similar sound. One of the well known "mega monster banks" (Clark Howard's term but it is very appropriate) bought smaller banks and, as a service to the customers, opened up closed credit card accounts. I was getting about 6 credit card applications a week in the mail so if an envelope was from a bank I didn't have an account with I would just drop it in the shredder. I don't know why but one day I opened an envelope from mega monster bank. The statement said that I was being sent to collections. Thinking identity theft I called them. After several minutes (it was not easy, I had to ask for a supervisor) I was able to get out of them that they reopened a closed account from a different bank, charged the account the yearly membership fee (my old bank did not charge one) and then proceeded with interest, penalties, etc. on the membership fee. After about half an hour of effort they still would not budge on the $100+ that they wanted.

My paragraph above is only similar to yours in that an innocent person is a victim. Here is where my experience and yours could help others. I quit trying to change their mind and asked for the operator number and correct spelling of the name of the person I was talking to. In addition I asked for any kind of a ticket number that might be associated with the call. When they asked why I told them that what they did was interstate wire fraud, identity theft and with a good attorney and a prompt call to the FBI I was sure that they could be found guilty of violating other Federal Interstate Commerce Laws. Without me asking again they said that my account would be zeroed out and closed in their computer that night and that they were sorry but the closing wouldn't post until the next business day.

If you see a commercial 50 times a week for something that everyone buys then that might be normal business. If you see a commercial 50 times a week for a specialized medical device then someone is probably smelling way too much money. Be careful.

If you see a news story where a company is paying huge bonuses to executives while the company has its finances in the toilet then you have in front of you a pretty strong statement about that company and how much their management really cares about the quality of their business.

P.S. Has anyone else noticed that contract phone companies are buying property all over town and building brand new stores on expensive corners to compete with the similar quality of service cards from places like Wal Mart that do not have a contract. They seem to be smelling huge amounts of contract money to pay for all that investment. Hmmmm, I wonder if we can draw a parallel between this and above postings?

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#3
In reply to #2

Re: The Scooter Scam

01/16/2013 6:13 AM

I just assume that everybody is trying trying to rip me off anymore.

Another, (legal), scheme the big banks are using, is to setup shell companies, buy up properties with tax liens on them, (for pennies on the dollar), and immediately start foreclosure proceedings.

The victims are often the elderly, that can't come up with the property taxes on the homes that they already own outright, and spent their lives paying for.

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