Complain about a product or service

Electric Mobility Responds

Takes Issues With "Fines"

February 11, 2003

Rascal Scooters • Electric Mobility Settles Misrepresentation Charges • Rascals Come In Many Forms • Company Pays $225,00 to NJ --- • Rascal Complaints • Rascal Objects to Use of Word "Fined" • David Complains • The Company Responds • A Follow-Up from David • Rascals' Defenders

Mr. James R Hood
Editor in Chief & President
Consumer Affairs.Com
400 N Capitol St., NW Suite G-50
Washington, DC 20001

Dear Mr. Hood,

Once again, I have viewed, with great concern, the misinformation you have posted to your website concerning Electric Mobility Corporation. Electric Mobility was not fined $225,000 by the State of New Jersey as your website erroneously reports.

Electric Mobility entered into an Assurance of Voluntary Compliance with the State of New Jersey. By doing so, we believe that we have set the industry standard for ethical sales practices. It is also important to note that this was an amicable agreement and that Electric Mobility voluntarily cooperated and agreed to this Assurance of Voluntary Compliance. Furthermore, the agreement resolved and settled all issues in controversy without any findings of law or fact. Moreover, the agreement, executed by the Attorney General of the State of New Jersey and me, specifically acknowledges "Electric Mobility admitted no wrongdoing and the fact that Electric Mobility promises to act in specific ways or not to act in specific ways does not constitute an admission that Electric Mobility has acted any differently in the past. Indeed, Electric Mobility contends that it has always been in compliance with the laws and regulations of New Jersey."

The majority of the provisos contained in the Agreement have been in place for many years. Medicare coverage criteria is a complicated issue---one that we have always addressed during our sales presentation. Whenever customers do not meet this criteria, we have had the customers execute an Advance Beneficiary Notice, as required by Medicare regulations. We have taken additional steps to change our documentation to assure that all Medicare beneficiaries now acknowledge, in writing, that they have received both the Medicare coverage criteria and the fee schedule amount applicable to their state of residence.

Electric Mobility paid the amount specified in the Agreement for "attorney fees, investigative costs and future consumer initiatives" and to establish an escrow fund. After resolution of any previous consumer concerns, the remaining balance of the escrow fund will be returned to the company. Nowhere in the agreement is the there any mention of "fines" as purported in your website.

We believe that we have always upheld high ethical standards in our industry. We voluntarily entered into this Agreement to assure our customers and all persons associated with the company are aware of the standards to which we are committed.

Sincerely,

Michael Flowers
President

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