Whistle blown on NBAA

Local News

September 29, 2008

Local man claims FW company engages in unethical practices

Anonymous The Weatherford Democrat Mon Sep 29, 2008, 10:30 AM CDT

Phil Riddle

editor@weatherforddemocrat.com

Weatherford resident Derek Mitchell was terminated from his job as a telemarketer with National Benefit Advisory Association recently after reportedly calling attention to what he feels are unethical business practices.

The company, based in Fort Worth, offers discount health care for a monthly premium.

Mitchell, who worked for NBAA for less than three months, said he was greeted on the first day at the job by a manager who told him, “I’ll tell the customers anything to get their credit card number.”

That, according to Mitchell, is the problem with the company.

He said he was told if he could not close the deal with any client, to get a manager on the phone.

“When we would comply with our instructions, the manager would get on the phone and promise the prospect anything to get his or her financial information,” Mitchell said.

He added the sought-after data included Social Security, credit card, bank account and routing numbers.

Mitchell reported when he asked about misleading customers into giving up their financial information, he was told customers not satisfied with their coverage could cancel their policy.

“The problem here is that, while the client would receive a refund of the first month’s premium if it was canceled within 30 days, the client would lose the non-refundable processing fee,” He said. “And that’s not all.”

Mitchell said he witnessed transactions involving several customers who wanted to participate in NBAA’s program, but did not have money in their accounts at the time. They were told to give their information to company representatives and the transaction would take place at an agreed-upon date when the funds would be available.

“The prospect’s financial information would be used as soon as the prospect hung up the phone,” Mitchell said.

Company President Bob Merrill said if he is aware of employees dealing unethically with customers they are immediately terminated.

“We do everything by the book,” he said. “That’s absolutely not the way we do business. We don’t condone that.”

Merill said he was not a floor-level supervisor and did not remember Mitchell or the circumstances surrounding his termination.

“But I will say again,” he said, “we don’t put up with that.”

An Internet bulletin board set up for postings pertaining to NBAA features notes from several customers who seem to bear out Mitchell’s accusations.

“I had signed up with NBAA for insurance for myself and my two daughters,” one poster wrote in early August. “After specifically telling them not to draft my account until my other insurance company was canceled, so I wasn’t double drafted, they did it anyway, and not for the dollar amount that was stipulated. I have called them five times in the last three days. This drafting has really fouled up my account.”

According to the Better Business Bureau, NBAA has received 31 complaints in the last year, but the company has been responsive to complaints.

The BBB reports selling practices and billing disputes are the most common complaints from NBAA. Specifically, consumers allege misrepresentation of the product they are being offered, and automatic withdrawals made from bank accounts without permission.

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