In 2006, a 73 year old man from Punta Gorda, Florida, saw an ad in the newspaper for an annuity with a guaranteed excellent return on his money. He made an appointment to go in to talk to them. The address was in a good neighborhood and the office was neat and orderly and nicely decorated. Mr. Customer was greeted warmly by the sales representative, and was told all about this wonderful investment opportunity. The salesman even offered Mr. Customer a list of references of "other satisfied customers." What a nice man that salesman was! Mr. Customer felt like he was talking to a family member. After hearing all the great news about this guaranteed investment, he agreed to invest the bulk of his savings – over $100,000 – thinking he’d benefit more than if he just left it in a savings account or Certificate of Deposit. A while later, when he did not receive a dividend check he had expected, he began inquiring. The agent’s office had been vacated and it appeared the company had simply disappeared . . . with Mr. Customer’s $100,000.
How could this have been avoided? When Mr. Customer saw the newspaper advertisement, he could have called the Department of Financial Services, Division of Consumer Services Help Line at 1-877-MY-FL-CFO (1-877-693-5236). A consumer specialist would have looked up the company and would have been able to tell Mr. Customer that the company was not authorized by the Office of Insurance Regulation to do business in Florida. Once he had that important information, he would have never gone through with a meeting, and would have left his money in the bank.
A Santa Rosa County senior was solicited by telephone for the purchase of an extended auto warranty. The sales representative used high pressure tactics to get the consumer to purchase the warranty for a cost of $399.00. When the consumer received the warranty contract, it was discovered that it did not provide the coverage promised by the representative. After unsuccessfully attempting to obtain a refund of the initial payment, the consumer contacted the Department of Financial Services for assistance. Upon investigation, it was discovered that the warranty company is not licensed to do business in the State of Florida.
Attempts to obtain a refund for the consumer were unsuccessful. If this consumer had contacted the Division of Consumer Services before making the purchase, this situation could have been avoided. Don't allow your judgment to be swayed by "high pressure" sales tactics. Always Verify Before You Buy!
A Palm Beach County senior contacted the Division of Consumer Services Help Line to inquire about a discount medical plan being offered by a local agent. The consumer wanted to verify the legitimacy of the plan prior to purchasing. The Insurance Specialist was able to determine that the plan being offered was not licensed by the State of Florida and advised the consumer not to proceed with the purchase. The senior was able to save $474.00 by contacting the Department prior to making a decision to purchase this Discount Medical Plan.
A Hillsborough County senior called the Division of Consumer Services Helpline after discovering that he had been misled about the product he purchased. The consumer answered an advertisement offering a one year Certificate of Deposit at 6.5%. A total of $175,000.00 was given to the agent with the understanding that it would be placed into the CD. The consumer later discovered that the funds had actually been placed into a ten year annuity.
One of the DFS Insurance Specialists contacted the company on behalf of the consumer and was able to obtain a full refund of the consumer’s initial deposit plus interest. We are pleased that we were able to assist this consumer in obtaining such a successful resolution.
A Pinellas County senior contacted the Division of Consumer Services after being unwillingly enrolled into a Medicare Advantage Plan. The Insurance Specialist reviewing the case was able to determine that the agent misrepresented the product and used high pressure sales tactics to convince the consumer to sign the paperwork. These findings were presented to the company and the Centers for Medicare and Medicaid Services. Upon review of the Division’s findings, the consumer was retroactively disenrolled from the Medicare Advantage Plan and previous coverage was reinstated without lapse.