Complaint resolution service publishes case studies, recall information and consumer news.

Bayer, the folks who make aspirin and medical supplies, has a growing business in the diabetes care field.  With more than 20 million Americans currently suffering from diabetes and a projected 1 in 3 children aged 8 projected to contract the disease, there is big money in reaching diabetics and locking down their preferences.

The giant health care company has agreed to pay a fine of nearly $100 million to settle U.S. Justice Department allegations that they paid distributors to convert diabetic patients from their glucometer (a device that measures blood sugar), test strips (the expensive part of the proposition, ranging up to $1 each for the uninsured) and other supplies.

The federal agency says that supplier Liberty Medical received $2.5 million as payment for each Medicare patient converted.  The funds were designated “advertising”.

“If medical device manufacturers want to serve Medicare beneficiaries they must follow the law,” said Gregory G. Katsas, Assistant Attorney General for the Civil Division. “Paying healthcare suppliers to place a particular brand of device with Medicare beneficiaries violates the law and will not be tolerated.”

Bayer reportedly paid $375,000 to ten other suppliers. The $97.5 million fine settles claims against Bayer through 2007. The company was also required to enter into an agreement with the government regarding future conduct.

Posted under Customer Service

Walkie-Talkies sold at Toys R Us recalled for burn hazard

If you started holiday shopping early this year, you may want to check the packaging if you bought a Cobra 2 way radio (what we used to call walkie-talkies) at Toys R Us.

The manufacturer and U.S. Consumer Product Safety Commission are cooperating on a recall of 8,000 units of the cool looking toys (pictured left) because the rechargable batteries can leak and cause a chemical burn.

The great news is that no one has been hurt yet, so cheers to Cobra for moving fast on this recall.

How To Tell If Your Walkie-Talkie Is Recalled

The recall involves two-way radios with the 300 mah “CEL” batteries. The walkie talkie style radios are made of pink plastic and come in purple packaging. Product number PR191-2VP is located on the front of the packaging and on the label inside the battery compartment. The batteries are standard AAA Nickle Metal Hydride battery cells with a black wrapper with the battery name 300 mah (CEL) with the date code (TF or RF) on the battery itself.

Cobra asks that consumers stop using the radios and contact them for a free replacement and a 20% coupon on a new purchase.   Do not touch anything that has leaked from the battery, which is sound advice in almost all cases, come to think of it.

More information is available toll-free at (888) 252-9889 between 8 a.m. and 6 p.m. ET Monday through Friday

Posted under Products, Recalls, Safety

Ten payday lenders, defined as a company that lends money at usually high interest rates against an upcoming paycheck, are facing Federal Trade Commission (FTC) charges regarding advertising and collection tactics.

The Nevada government added to the federal charges, which allege that payday lenders did not disclose important information about the loans and that their collection tactics were “abusive”.  Potential customers were told that they could borrow several hundred dollars for a fee ranging from $35 to $80 provided that the amount was repaid in the next week.   Borrowers had to provide the companies, some of them based in the United Kingdom, with their bank and social security information.

During repayment, special clauses that the government contends were not disclosed to borrowers would cause the loan amount to increase by many times over.  If the borrower terminated the lender’s access to the account, they were subject to what the government called “abusive” collection tactics.  Borrowers were allegedly told they were subject to arrest or property seizure.

he corporate defendants are Cash Today, Ltd., The Heathmill Village, Ltd., Leads Global, Inc., Waterfront Investments, Inc., ACH Cash, Inc., HBS Services, Inc., Lotus Leads, Inc., First4Leads, Inc., Rovinge International, Inc., and The Harris Holdings, Ltd., each also doing business as Cash Today, Route 66 Funding, Global Financial Services International, Ltd., Interim Cash, Ltd., and BIG-INT, Ltd. The individual defendants are Aaron Gershfield, Ivor Gershfield, and Jim Harris.

Tough economic times can sometimes cause consumers to seek alternative income or lending sources.  As always, checking the lender’s reputation with your local consumer affairs office — at either the local or state level — is the best course of action before borrowing from any well-known lender.

Posted under Finance