Hidden Fees and Terms of Medical Alert Companies

We're big believers in transparency, especially when it comes to marketing products and services to seniors.

That's why we're devoting this article to highlighting some of the more problematic terms and conditions and marketing practices we believe are hidden in the small and not so small print of medical alert systems for seniors.

NO MONTHLY CONTRACTS. OH, REALLY!

Medical Guardian advertises that it has no monthly contracts. When we called their call center, they confirmed to us verbally that they have no monthly contracts and that you can even cancel their contract within the first month or two with no penalty. All sounded good and clear as day.

However, when we dug into their contract, we noticed the following in the TERM AND TERMINATION section of their terms and conditions:

We then called back their service center and asked them to explain the discrepancy. We were told if you take the monthly plan, there is indeed a 3 month minimum commitment. Only if you take the annual plan, which requires you to pay 12 months worth of payments up front, do you have the option of cancelling any time, albeit with a full pro-rated refund, without a 3 month minimum commitment.

We found this sneaky, especially since it doesn't mention it anywhere on MedicalGuardian's website, other than in the small print of their terms and conditions. Nor was their call centre representative upfront with the 3 month minimum either, we felt like we really had to push for him to acknowledge the 3 month minimum.

FREE CANCELLATION, BUT WITH A CATCH!

Many medical alert companies highlight free cancellation. Some, like MobileHelp, say there is no need for them to mention free cancellation, because they have no contracts.

However, what they neglected to tell us over the phone, and what we couldn't find clearly on their website, other than in the small print of their terms and conditions, was that when you cancel, they charge you a $50 restocking fee.

That looks like anything but a full refund or free cancellation. In fact, instead of calling it a restocking fee, it could easily be called a cancellation penalty - it if looks like a duck, walks like a duck and sounds like a duck...

HIDING HIDDEN FEES IN THE OPEN

It's one thing to have hidden fees. It's quite another to brag about having no hidden fees, only to have hidden fees! Both are bad, but the latter is worse. Take Medical Alert as an example. They advertised the following pricing on their website:

So far all seems normal. You'd think you were getting charged $19.95 a month, with no other "hidden" fees. Until you get to check out and see the following:

Not only is there an up-front $99.95 fee, it's non-refundable! So if you get the Medical Alert system, find out you don't need it, don't like it or your parent refuses to wear it, you're out the $99.95! Seems like a steep commitment for a purchase you're making site unseen.

A 30 DAY MONEY BACK GUARANTEE, WITH A FEE!

When a company offers you a 30 day money back guarantee, what do you think? This is what we think - you get to return the product and cancel the service for free, and any fees already charged get refunded. At least that's what we thought, but check this out:

Imaging having the gall to say "order with confidence with our 30 day money-back guarantees", only to then contradict yourself by saying we'll "refund your entire purchase, minus a $75 restocking fee!" It would be hilarious, if not for the fact it's true and it exploits the trust of our most vulnerable population.

A TRYING TRIAL PERIOD

Medical Care Alert, publicizes a 14 day full refund trial period. The catch is, you have to at least plug it in and try it. If you don't, they charge you a $50 restocking fee! That my sound fair, but what happens if you get the system as a gift for a parent and they simply refuse to even open the box. Or they simply don't like the look of it, and never plan to use it.

Moreover, in the Terms and Conditions it states "Subscriber understands that there is a 14-day risk free return policy which provides for a full refund for any unused prepaid monitoring less shipping charges". This is VERY different than a "trial" period since you will pay for the days you used, and merely get a refund for the days you prepaid for, that remain unused. It is more of a cancellation feature, not a true trial period or refund in our opinion.

Also, if you take a look at the first paragraph, you'll notice they also charge you for "any shipping costs that Medical Care Alert has incurred."

So if you thought you were getting a true "trial" period, just be mindful of the small print.

A PRODUCT WARRANTY WITH NO JUICE

Most medical alert companies we've reviewed warranty their products for "normal wear and tear". Many then offer supplementary warranty plans that cover damage to the equipment for accidents like dropping the system, spilling hot coffee on it, etc...

Bay Alarm Medical however, does NOT cover dead batteries on your medical alert pendant. We called to verify and were told they do not cover dead batteries in pendants, and the customer would have to purchase a new pendant at the price of $39.95 to replace the old pendant. If you want coverage for battery replacement, you have to purchase Bay Alarm's Warranty Plan at $4.95 per month.

LifeFone, Life Alert and ADT, on the other hand, will both replace your pendant in the event your battery dies. In fact, LifeFone monitors the strength of your battery remotely, and if they find it needs replacement, they will ship you a new pendant without you even having to ask.

Hopefully, the examples above will make all of our readers better consumers. Keep your eyes open and comparison shop. Just because one company does something, doesn't mean they all do.

We highly recommend getting a plan with as much flexibility as possible, which means 30 day money back guarantees, no restocking fees, free cancellation and no non-refundable up front costs.

We also recommend placing your purchases on your credit card, as opposed to direct debiting from your bank account. This is helpful because in the event you have a dispute with a company on your credit card, for example if the product was never shipped to you, Visa and/or Mastercard can look into whether or not the merchant's practice was fraudulent or not. Moreover, you can always cancel your credit card.