Action: Dual applications confuse coverage

After being dropped by Cigna, I applied to Blue Cross Blue Shield, Health Options Inc., for membership on Aug. 14 and sent in a check for $35. Not hearing anything, I called its customer service department on Sept. 5 to inquire about my application. A man told me he had no record of it and advised me to call Sonnenberg Insurance Services to expedite my application. I did so, another application was filled out, and I sent another $35 check with it.

I then received notice that my first application had gone through. I called customer service to tell it I had sent two checks and was therefore paid up for Oct. 1 and Nov. 1. I was assured this was correct.

Since then, I have been billed for the November premium of $35 and threatened with disenrollment for nonpayment. I have sent copies of canceled checks, talked to the billing department, talked to customer service and sent several letters, to no avail. I did receive one phone call to let me know that it would be straightened out, but this hasn't happened. Please, I need help. Barbara Hale

Response: Thanks for letting us know that the complications with Blue Cross Blue Shield, Health Options Inc. have been resolved. We're glad we could help.

Magazine compromise

My wife received a telephone call from a company selling magazines at a time she was not feeling well because of two bouts with cancer. The phone call confused her, and she ordered some magazines. The outcome is that we now receive magazines which we really do not want and have payments of $61.88 for the next 48 months. I have tried to contact this company, Diversified Marketing Service, and have been told that there is no way I can cancel, because it has my wife's order on tape. My wife didn't realize she was being taped, which I think is wrong. I am willing to pay for these magazines up to date but am trying to cancel any future dealings with this company. Maybe you can help me to end this situation. James Fertitta

Response: Janet Kisling, account analyst with Diversified Marketing Service in Oklahoma City, said your wife, Lillian, agreed to purchase a subscription to several magazines in August. She was recontacted and the order was verified on tape with her knowledge and permission.

During the verification, Kisling said your wife acknowledged that she knew which magazines she had selected and understood the payment amount, number of payments and total cost of service. She also provided her credit card information so that DMS could automatically charge her monthly payments to her Mastercard.

According to Kisling, your wife was sent a written confirmation of the order which included a notice of cancellation and a form for her to mail back to DMS if she chose to cancel. Your wife did not cancel the order within the time allotted, so DMS entered the order as agreed.

Had she canceled prior to order entry, Kisling said DMS would not have incurred any costs for sales commissions, the magazines themselves, etc. The only way that DMS can recover its investment is for its customers to make their monthly payments as agreed.

Kisling said that because your account is delinquent, DMS is canceling the order. However, your wife is expected to pay a settlement of $129.94. This amount will pay for service received and close the account.

We are a little puzzled that your wife would receive a past due notice for $123.76 when the company was going to charge the subscriptions to her Mastercard. In any case, we suggest keeping an eye on future credit card statements to make sure that no charges for magazines show up. We also suggest you go ahead and pay the amount DMS is willing to accept to cancel your account in good standing. (We suspect the $6.18 difference is either a finance charge or a late payment fee. Our advice? Go ahead and pay it.)

As a general rule, we caution people against ordering magazines from subscription services. How many magazines could you buy at the newsstand price, much less the generally discounted subscription prices offered by the magazines themselves, for $2,970.24?

That's what 48 months at $61.88 a month would have ended up costing you. Of more concern is the fact that your wife gave out her credit card information. The standard, unchanging advise is never to give personal or financial information to telemarketers or callers you do not know.

Action solves problems and gets answers for you. If you have a question, or your own attempts to resolve a consumer complaint have failed, write Times Action, P.O. Box 1121, St. Petersburg, FL 33731, or call your Action number, (727) 893-8171, or, outside of Pinellas, (800) 333-7505, ext. 8171, to leave a recorded request.

Requests will be accepted only by mail or voice mail; calls cannot be returned. We will not be responsible for personal documents, so please send only photocopies. If your complaint concerns merchandise ordered by mail, we need copies of both sides of your canceled check.

We may require additional information or prefer to reply by mail; therefore, readers must provide a full mailing address, including ZIP code. Names of letter writers will not be omitted except in unusual circumstances. Letters may be edited for length and clarity.

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