# Oil co. cancelled my account...



## ylomnstr (Feb 4, 2009)

So last June I locked into a price plan with auto delivery with Love Effron fuel.  They recorded a verbal agreement with me over the phone.  Apparently in the agreement it says if I did not take oil, they had the right to cancel my account and charge me a $500 cancel fee.  They also sent me a contract to sign which I never actually did sign and send back to them.

Well, based on the fact that I still had a balance from the year before which I was still paying off, they didn't come and deliver as they were scheduled to in November.  I get a letter last week saying they cancelled my account and added that fee on top of it.

I spoke to them and they aren't willing to work with me.  So I have a couple of questions.....

1)  Since this isn't really a credit account, will it effect my credit if I don't pay the cancel fee and they send it to collections?
2)  Do I have any sort of case here since  I never actually signed the contract and sent it back, even though they have my verbal agreement?

I don't mind paying them for the rest of my balance, but I am not paying the $500 cancelation fee since I did not request to cancel it.  They're just pissed off that since I got the pellet stove, I haven't used any oil.  

Comments/suggestions?


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## karri0n (Feb 4, 2009)

You absolutely have a case, but it won't need to come to that. Contact the better business bureau for your area, or simply threaten to. They won't bother you. Since you did not sign the contract, and since the cancellation is from them and not from you, this is 100% on them. If the BBB doesn't get it done, any attorney will take this one.


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## SaratogaJJ (Feb 4, 2009)

I agree with contacting your local BBB, and speaking to someone there.  While not a cure-all, they can be very helpful sometimes.

You may also wish to consider contacting the oil company and ask for them to provide you a copy of the contract with your signature, under the pretense of your attorney needing a copy of the contract for his/her review.  Once they realize that they don't actually have a contract with your signature, they might see the weakness inherent in their position, and the matter might just go away.


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## ylomnstr (Feb 4, 2009)

Well they know that I never sent back the signed contract.  They said that was more of a confirmation of the contract and isn't really needed.  The recorded verbal agreement is what they're going on now.


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## burntime (Feb 4, 2009)

What? No handshake :lol: I would send them a certified letter asking for the balance and note that you have not violated any agreement and are not going to pay 500 for it.  At least if they get crappy and run you to the courthouse you show a willingness and the big bad oil is preying on people!


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## karri0n (Feb 4, 2009)

I don't think what they have will hold water. You didn't refuse an oil shipment; they refused to ship you oil.


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## GaryS (Feb 4, 2009)

Normally, a judge will recognize an "implied contract" if you had in fact accepted oil deliveries without signing the paper contract.  The fact that no oil was ever delivered may help you make your case.


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## stephen44 (Feb 4, 2009)

.. but you burn this bridge -  do you have another supplier that you can use in the future if needed ?


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## ylomnstr (Feb 4, 2009)

Yes, there are plenty of providers here.  Now knowing that the pellet stove can handle heating my home, I will not sign another contract with oil.  If and when I need a deliver, I will call around and get the best price and just have them deliver at that time.


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## Wet1 (Feb 4, 2009)

GaryS said:
			
		

> Normally, a judge will recognize an "implied contract" if you had in fact accepted oil deliveries without signing the paper contract.


Correct.  A verbal contract should still be considered binding.


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## pinewoodburner (Feb 4, 2009)

ylomnstr said:
			
		

> Well they know that I never sent back the signed contract. They said that was more of a confirmation of the contract and isn't really needed. The recorded verbal agreement is what they're going on now.


Call them and tell them you need a transcript of the verbal agreement that they recorded. They first have to inform you of the recording of the conversation, otherwise it is illegal to record a phone conversation. If you did agree to the recording, the transcript will show if they discused the cancellation fee. If they did, you are under contract with them. You could take a chance in small claims court. If they did not tell you verbally of the cancellation fee, they can not hold you to it.


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## rydaddy (Feb 4, 2009)

Don't pay 'em.


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## MishMouse (Feb 4, 2009)

But, didn't the company agree to deliver oil to you?
They violated the agreement when the failed to deliver your oil.

Also since they magically added a $500 fee for them cancelling your contract.
Why don't you charge them a $5K fee for breach of contract on the agreement that they didn't sign but had a verbal agreement with you to deliver your oil?


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## ylomnstr (Feb 4, 2009)

MishMouse said:
			
		

> But, didn't the company agree to deliver oil to you?
> They violated the agreement when the failed to deliver your oil.
> 
> Also since they magically added a $500 fee for them cancelling your contract.
> Why don't you charge them a $5K fee for breach of contract on the agreement that they didn't sign but had a verbal agreement with you to deliver your oil?



They did agree to deliver the oil.  The funny thing is when we agreed to lock in the price, I still had an outstanding balance from last years oil.  of course they didn't say anything about it at that time.  So their reason for not delivering oil is because I still owed money from last year.  Well if that was the case, how come the jumped on it when I agreed to lock in at $4.99?  PROFIT!


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## Slow1 (Feb 4, 2009)

I recommend that you pay the past due balance - whatever was outstanding prior to the $500 charge.  Write them a polite letter stating that since no goods or services were ever exchanged you do not believe that you have any further obligation to them and thus have no intention of paying the additional $500 charge.  Ask in this letter that if they believe that you indeed owe them the additional money, please forward a copy of whatever documentation they have proving the obligation so that you can have it reviewed by your attorney and get back to them.

I imagine that this approach should pretty much close the deal for you - send it certified if you really want to get their attention that you are serious.  Keep a copy in any case (including a copy of the check you send settling the outstanding balance).  IF the matter goes forward beyond this point, be sure you only allow it to do so via writing - i.e. if they call, ask them to write you "for your mutual protection in having things well documented."    For example, if they choose to simply apply the check to your account, ignore the letter and send you another bill, you can return the bill to them (keep a copy) and send a copy of your letter along with a copy of the proof of receipt and another note stating "please review the attached correspondence as your billing department has apparently made an error here".  Overall you are forcing them to contact you in writing and proceed with their case - more trouble than it will be worth for them and unless they really have a good system in place for documenting the verbal contract they claim to have with you it should end in your favor.

Mind you, IF you indeed knew the terms of the contract when you agreed to it verbally  - i.e. if they explained clearly that you would be obligated to a minimum delivery with a charge if you didn't accept that amount of oil within some period of time, then you do have an obligation to pay.  Ethically you simply should pay up what you agreed to.


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## ylomnstr (Feb 4, 2009)

Slow1 said:
			
		

> I recommend that you pay the past due balance - whatever was outstanding prior to the $500 charge.  Write them a polite letter stating that since no goods or services were ever exchanged you do not believe that you have any further obligation to them and thus have no intention of paying the additional $500 charge.  Ask in this letter that if they believe that you indeed owe them the additional money, please forward a copy of whatever documentation they have proving the obligation so that you can have it reviewed by your attorney and get back to them.
> 
> I imagine that this approach should pretty much close the deal for you - send it certified if you really want to get their attention that you are serious.  Keep a copy in any case (including a copy of the check you send settling the outstanding balance).  IF the matter goes forward beyond this point, be sure you only allow it to do so via writing - i.e. if they call, ask them to write you "for your mutual protection in having things well documented."    For example, if they choose to simply apply the check to your account, ignore the letter and send you another bill, you can return the bill to them (keep a copy) and send a copy of your letter along with a copy of the proof of receipt and another note stating "please review the attached correspondence as your billing department has apparently made an error here".  Overall you are forcing them to contact you in writing and proceed with their case - more trouble than it will be worth for them and unless they really have a good system in place for documenting the verbal contract they claim to have with you it should end in your favor.
> 
> Mind you, IF you indeed knew the terms of the contract when you agreed to it verbally  - i.e. if they explained clearly that you would be obligated to a minimum delivery with a charge if you didn't accept that amount of oil within some period of time, then you do have an obligation to pay.  Ethically you simply should pay up what you agreed to.



Thanks for the replys guys.  I appreciate the help.  I do need to get a copy of the transcript of the voice agreement.  I'm pretty sure that the 'meat and potatoes' of the contract was the one that I was supposed to sign and send back, which I never did.  I do like this approach though.  I have filed the complaint with the BBB already and we'll see where it goes from here.


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## Corey (Feb 4, 2009)

pinewoodburner said:
			
		

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This is another good point to consider.  If they did have an actual transcript and if it ever went as far as a trial, the outcome may hinge on a single word.  If their statement was something to the effect of "If *you* cancel the account, there will be a $500 cancellation fee", I'd say you're off the hook, because *you* didn't cancel the account.  If they worded it as "If *we* cancel your account..." that might present a different issue.


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## ylomnstr (Feb 4, 2009)

cozy heat said:
			
		

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That is a good point also.  I'm going to call them back and ask for a transcript.  Or do you think I should ask for it in writing, along with everything else from here on out as stated in the other post above?


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## Bubbavh (Feb 4, 2009)

Tell them you have been burning your stove and that you will accept oil when you need it.  If they don't like that then they can cancel the contract but you will not pay the $500 fee because you are still willing to accept oil when needed.  They are the ones refusing to deliver and canceling the contract, Not you!  They have no leg to stand on.  Also report to BBB as said above.  Chances are they think you will not fight them and just pay.  Lots of companies do this.   How many times have people been billed from a doctor or hospital for a procedure that should have been paid by your insurance?


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## Slow1 (Feb 4, 2009)

ylomnstr said:
			
		

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Although this is an 'exciting' event of sorts, it sounds like you have already initiated at least one avenue of relief (the BBB complaint).  To go off calling/writing/etc may be a bit excessive.  Unless they are threatening other action at this time, I would let the BBB complaint take its course and see where it goes.  BBB may investigate, during that time you can ask them for a copy of the transcript.  Firing off so many requests and giving so many responses may be counterproductive to a rapid resolution.


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## ylomnstr (Feb 4, 2009)

Bubbavh said:
			
		

> Tell them you have been burning your stove and that you will accept oil when you need it.  If they don't like that then they can cancel the contract but you will not pay the $500 fee because you are still willing to accept oil when needed.  They are the ones refusing to deliver and canceling the contract, Not you!  They have no leg to stand on.  Also report to BBB as said above.  Chances are they think you will not fight them and just pay.  Lots of companies do this.   How many times have people been billed from a doctor or hospital for a procedure that should have been paid by your insurance?



Well the contract I agreed to was for auto-delivery and for the rate lock in.  So their issue is because i had an outstanding balance from the previous year, they were unable to deliver until that was paid off.  If that was the case, why did they ever agree to a new contract with me before I paid off the previous balance?  Simple answer is that they wanted to profit off of me because I locked in at $4.99.  

The more I think about it and with all the replies on this topic, I really don't think they have much of  a case.


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## Rich L (Feb 4, 2009)

ylomnstr said:
			
		

> So last June I locked into a price plan with auto delivery with Love Effron fuel.  They recorded a verbal agreement with me over the phone.  Apparently in the agreement it says if I did not take oil, they had the right to cancel my account and charge me a $500 cancel fee.  They also sent me a contract to sign which I never actually did sign and send back to them.
> 
> Well, based on the fact that I still had a balance from the year before which I was still paying off, they didn't come and deliver as they were scheduled to in November.  I get a letter last week saying they cancelled my account and added that fee on top of it.
> 
> ...


  Don't call a lawyer as yet.Inform the company your going to send a written complaint to your Attorney Generals office.If they don't back off then,then contact your Attorney General's office and file a complaint regarding the $500.00 fee situation.


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## GKG-MO (Feb 4, 2009)

I once had a pretty bad car accident where I rolled my car down a major highway. The volunteer Fire Dept. cleaned up after the accident and 3 months later I got an itemized bill for $1870! They charged me $25 a piece for flares, $80 to buy new brooms and a lot of other nonsense. I contacted my attorney and he told me not to pay it because a volunteer Fire 
dept. is a government funded nonprofit and can't bill for a service you don't request. I asked him about my credit and he told me if they don't have your social security number they couldn't do anything to your credit report. They sent a couple of threatening letters saying they were going to turn me in to a collection agency but I just called them back and told them to contact my attorney. Never heard from them after that. That was 6 years ago and I still haven't paid that bill. No problems with my credit either.


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## ylomnstr (Feb 4, 2009)

GKG-MO said:
			
		

> I once had a pretty bad car accident where I rolled my car down a major highway. The volunteer Fire Dept. cleaned up after the accident and 3 months later I got an itemized bill for $1870! They charged me $25 a piece for flares, $80 to buy new brooms and a lot of other nonsense. I contacted my attorney and he told me not to pay it because a volunteer Fire
> dept. is a government funded nonprofit and can't bill for a service you don't request. I asked him about my credit and he told me if they don't have your social security number they couldn't do anything to your credit report. They sent a couple of threatening letters saying they were going to turn me in to a collection agency but I just called them back and told them to contact my attorney. Never heard from them after that. That was 6 years ago and I still haven't paid that bill. No problems with my credit either.



That's my major concern here is them going after my credit.  I don't think I ever gave them my SS#, but I'm not 100% sure.  If all they do is send me to a debt collector, then that's fine, but the credit is what I'm worried about.  And by the way, your story is CRAZY.  I can't believe they came after you for that!


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## Nonprophet (Feb 4, 2009)

I'd give some thought to contacting your local news/TV station and/or newspapers.  Many of them have a "consumer advocate" reporter who likes to go after companies/businesses that try and pull crap like this.  If there is a local TV news reporter that does stories like this, call them up and see if they're interested in looking into it for you.  Even IF the oil company has proof of your agreement and a good chance of prevailing in court, the $500 they'd collect from you is in no way worth the bad publicity they'd receive if you go public with what they're trying to pull and they'd be wise to drop it.............

Sounds to me like it's sour grapes from them because all they want is your money and you're not giving them any!


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## daveswoodhauler (Feb 4, 2009)

Most companies will have a SS# for you if you buy anything on credit with the vendor. Around here, if you call/buy oil when needed, and don't lock in...you can pay by cash/credit card...if you are on an agreement where they bill you monthly, most likely they have your social.
I agree that you have a firm case, but I think they probably can impact your credit score.


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## gpcollen1 (Feb 4, 2009)

ilikewood said:
			
		

> Most companies will have a SS# for you if you buy anything on credit with the vendor. Around here, if you call/buy oil when needed, and don't lock in...you can pay by cash/credit card...if you are on an agreement where they bill you monthly, most likely they have your social.
> I agree that you have a firm case, but I think they probably can impact your credit score.



You would give your oil company your SS#??  No way Jose...


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## JustWood (Feb 4, 2009)

Seems odd THEY cancelled the contract if you were locked in at $4.99/gal. They stood to make some fat coin off you!


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## semipro (Feb 5, 2009)

A verbal agreement is binding in most states but it has to be substantiated somehow. 

Its not necessarily illegal to record a phone conversation.  It depends on the state you're in.  When last it mattered to me, it was legal to record a phone conversation in my state, VA, as long as one party was aware of it.  I'm not sure what the respective laws are in NY. 

Sounds like you might want to pay what you owe them for oil and negotiate the other fees away. 

Good luck.


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## jdemaris (Feb 5, 2009)

ylomnstr said:
			
		

> So last June I locked into a price plan with auto delivery with Love Effron fuel.  They recorded a verbal agreement with me over the phone.



Maybe I'm missing some of the details here - but an agreement is not a legal contract unless money or "consideration" changes hands.  Verbal contracts are just as binding as written if they can be proved to exist - but as I said, only if you coughed up some money to make it binding.


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## daveswoodhauler (Feb 5, 2009)

CTwoodburner said:
			
		

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No, never give out my SS #, but many people do.
Most times when you sign up for credit with a dealer, the dealer runs a credit check on you to make sure you don't have any poor payment habits. Not all do, but many do this. 

I buy through a NFP that only lets the dealer charge so many cents over the wholesale price...works out pretty well.


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## ylomnstr (Feb 9, 2009)

Here's the current situation.  I'm sending them a letter tomorrow with payment for my previous balance minus the cancelation fee.  I'm posting a copy of the letter I'm going to send in.  I just want to get some feedback from you guys. Let me know what you think.  I also don't know if I should tell them that I've already contacted the BBB or wait for their response to see how they handle it?  Thanks.

_To Whom It May Concern:

Please note that I am sending you payment for the total amount of $309.27 (previous balance plus late fee).  This will fulfill all my obligations with you since you have cancelled my account without notice.  Also please take this letter as my notice to no longer do business with your company in the future since this payment fulfills my obligations.

Furthermore I am not paying the $599.00 “early termination” fee of the contract seeing as I did not request to have the contract cancelled, nor have I received any oil or services from you since I agreed to lock in the price with you at $4.99 per gallon.  Your customer services representatives told me that my account has been cancelled since no oil has been delivered to me since I had a previous balance.  I had a previous balance when you let me lock into the $4.99 rate and I was never told that I had to pay that off before I would receive any oil and/or have my account cancelled.

We have been sending payment to the best of our ability each and every month, and have not once been notified that our account would be cancelled with an early termination fee without notice.  

I also notice that in the contract (which I never signed), it states that the early termination fee is $399.00, so I’m not sure where the $599.00 number came from, but you may want to make sure your paperwork is correct for any future customers.  

In addition, I have never signed any contract with you for any agreements. I am formally requesting a copy, as well as a transcript of the recorded conversation that you have on file for my records.

If you have any further questions, feel free to contact me.

Your former customer,

Rob R._


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## Slow1 (Feb 9, 2009)

Overall looks good to me.  However I would remove the paragraphs beginning "I also notice that..." and "In additions, I have..."  Both of these are unnecessary to the point of your letter and only serve to give them an opening to continue the discussion that you are intending to close with this letter.  IF they were to contact you and continue the discussion, then I would go with the request for copy and transcript of whatever they intend to try to hold you to.  The unsigned contract really has nothing to do with anything so I would not bother bringing it into the conversation.


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## jdemaris (Feb 9, 2009)

pinewoodburner said:
			
		

> They first have to inform you of the recording of the conversation, otherwise it is illegal to record a phone conversation.



Absolutely not true. In New York, only one party has to know a phone conversation is being recorded, not all.   You can call anybody you want and record without telling the other party and ALL is 100% legal.  I had to do it many times because of a crazy ex-wife and checked with the county District Attorney's office. Also later read the law.


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## ylomnstr (Feb 9, 2009)

Deffy said:
			
		

> ylomonster, I live right near you in Hyde Park. I always hear horror stories about love/effron.
> 
> I get my oil by calling around for the best price and they never even come close to their competition. each time i've called around since '05 the place with the best price was Valley Oil. Luckily i barely use any oil anymore thanks to the pellet stove. we  are almost done with winter and it looks like by end of april i'll have used 150gallons total.
> 
> if they really bother you about the fee, i'd call poughkeepsie journal (pojonews.com) and see if they would write a story on how love effron treats their customers. seems nobody loves effron around here.



My wife works for the pojo in the advertising dept.  I've already got that in the works ;-)


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## pinewoodburner (Feb 9, 2009)

jdemaris said:
			
		

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You are corect, I stand corrected.  Most business do let you know that they record the conversation if they do.


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## backpack09 (Feb 9, 2009)

Call you Attorney General.  In Mass they are always looking for a way to help the citizens when a company is doing some screwing.


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## semipro (Feb 10, 2009)

Slow1 said:
			
		

> Overall looks good to me.  However I would remove the paragraphs beginning "I also notice that..." and "In additions, I have..."  Both of these are unnecessary to the point of your letter and only serve to give them an opening to continue the discussion that you are intending to close with this letter.  IF they were to contact you and continue the discussion, then I would go with the request for copy and transcript of whatever they intend to try to hold you to.  The unsigned contract really has nothing to do with anything so I would not bother bringing it into the conversation.



I agree with Slow1.  Don't mention the unsigned contract or ask for signed ones or a transcript.  You can always do that in subsequent correspondance.  I'm sure you know but send it so you get proof of receipt with a signature.


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## Wet1 (Feb 10, 2009)

jdemaris said:
			
		

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True in NY, but I believe it varies from state to state.

Also, in your letter, you state you agreed to their terms over the phone and then later ask for a transcript of the call... "I agreed to lock in the price with you at $4.99 per gallon"  and then said "I have never signed any contract with you for any agreements. I am formally requesting a copy, as well as a transcript of the recorded conversation that you have on file for my records."  While you do/did have a binding verbal contract by agreeing to their terms over the phone initially, you are now confirming (in writing) your acknowledgement to some earlier agreement.  Just be careful if you're trying to get out of this.


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## jdemaris (Feb 10, 2009)

Wet1 said:
			
		

> True in NY, but I believe it varies from state to state.



Yes, many laws vary state to state, but the poster appears to be having his problems IN New York. Thus my comment.


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## ylomnstr (Feb 25, 2009)

Update:

Today I received a copy of a letter from the oil company which was sent to the Better Business Bureau in response to my complaint.  Here's what it said:

_"While we do sympathize with the customer's situation, the customer entered into a fixed pricing agreement with our company on July 1, 2008 beginning on July 1, 2008 through June 30, 2009 which we do have a recorded agreement.  With the customer's consent, we recorded our offer and the customer's acceptance of a protected price contract or renewal, including the early termination fee.  We have that recording available if you need to listen to it.

When a customer agrees to a pricing agreement, we secure the product for a customer at the time of the price offer and acceptance by the customer are made;  we are contractually comitted to purchase that product from the supplier.

We charge an early termination fee if a customer removes their account by either not paying invoices when due, not keeping the account on automatic delivery or buying oil from another company.

Mr. Rotundo has not pruchased oil from our company since April 9, 2008 and his account was not current which lead us to charge his account with an early termination fee of $599 according to our agreement.  We upheld our part of the agreement and expect Mr. Rotundo to do the same by paying the early termination fee.

We are proud of our long history of service to New York residents.  We should emphasize that we have honored our contracts, based on the phone agreements, by providing the oil to customers at the negotiated prices, no matter the circumstances in the marketplace or the weater.

We have followed our policies and procedures in accordance with NY ESRA Regulations (Part 540) and NYS Consumer laws.

If you have any questions or need additional information, please feel free to contact me"_

So if you see the 4th paragraph, I have paid every invoice when due, although not in full, and I was never late.  I never requested to be taken off automatic delivery, they just decided to not deliver since I owed money, nor did I ever buy oil from another company.  

I'm not sure what happens from here.  Do I wait to just  hear back from the BBB?  Or do I reply to this letter.  I'm going to sit tight, and they are NOT getting a cent of that cancellation fee from me.  Suggestions or comments?


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## daveswoodhauler (Feb 26, 2009)

[quote author="ylomnstr" date="1235622933"]Update:

We charge an early termination fee if a customer removes their account by either *not paying invoices when due, not keeping the account on automatic delivery *or buying oil from another company.

/quote]

I think the bold type is the key issue here....does the contract they sent you but you didn't sign indicate this verbiage?
Or, does the recorded contract that you agreed to indicate this verbiage of the contract?

I think that we need some answers to this before responding.

Good luck.


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## daveswoodhauler (Feb 26, 2009)

Also, you haven't bought oil since April of 2008. but you still have a balance on the account?
What are the terms of when you had to make payments by?
Not trying to stir the pot, but I think we need to know when your payments were made to the oil company? (No disagreeing with you, just trying to see both sides as much as I dislike the oil companies)


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## ylomnstr (Feb 26, 2009)

Yeah, I owed still from the prior season.  But that's one of my gripes.  Why did they happily agree to lock me in at a rate if I still had a previous balance?  I have been sending in money monthly.  There was no mention when they locked me in this last time that if I didn't pay off the previous balance, I'd get screwed like this.


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## stoveguy13 (Feb 26, 2009)

i think they will send you to collection for sure and it will go on you credit if it does not get paid you may want to get caught up to what you owe them in back invoices from the stand point you look like a dead beat and that they cloud get you for more then the 599 cancletation fee if they screw with them too much other thing youit will cost you alot more top pay a lawyer to get you out of it then it will cost to pay them


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## ylomnstr (Feb 26, 2009)

I did pay them my past balance minus the $599 fee.  I'm up to date now other than the $599 fee.


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## burntime (Feb 26, 2009)

Bills due when they send it.  You are delinquent when the balance is not paid in 30 days.  My guess is they are just trying to save thier image and nothing will come of it.  Did you pay the balance due yet?


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## ylomnstr (Feb 26, 2009)

Yes, I paid the balance due EXCEPT for the $599 cancellation fee.


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## burntime (Feb 26, 2009)

I wonder if they have any way to put something like a mechanics or contractors type lien against your property without judicial time?  My guess is it will fade off into the background.  Just don't call them for a fill up :lol:


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## daveswoodhauler (Feb 26, 2009)

ylomnstr said:
			
		

> Yes, I paid the balance due EXCEPT for the $599 cancellation fee.



Probably will take a bashin with this post....but here is my opinion.

If you haven't burned your bridge yet with the dealer, you might want to give them a call or visit them and see if there is something you could work out.
Not taking their side of the coin......but if you bought oil last year at the height of oil prices....and you bought when it was $4/gallon, its tough to argue with them when they bought at a very high wholesale price, and it was almost a year before you paid them.

I don't think that a $599 termination fee is reasonable, but I think they provided what was asked of them, and I do think they are entitled to something....again, not taking their side...just playing devils advocate.

If you ran a retail store, and a client bought on store credit and didn't pay monthly as required, and after 9 months you did not receive anything from the client...how long would it take you to send to collections/take to court? 

I don't like buying oil either......but if your agreement was to pay monthly, and you didn't, I think any oil company/retail store etc...has a right to some compensation.

Just sayin, and I guess let the bashing of me begin


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## ylomnstr (Feb 26, 2009)

ilikewood said:
			
		

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I understand, but I DID send them a payment every month.  Another of my main gripes is that I was never told that if I didn't pay off in full, I'd be cancelled.  On certain months, I even sent them 2 payments.


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## daveswoodhauler (Feb 26, 2009)

ylomnstr said:
			
		

> ilikewood said:
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## ylomnstr (Feb 26, 2009)

Well they didn't have a minimum payment.  The sent us an invoice for the total amount.  We were unable to pay that all so we sent them what we could each month.  The following month, they'd send us another bill, including a late fee, with the new balance.  They'd also call to remind us that payment was due.  I'd tell them that we sent them what we did, they would say thanks, and the next month we'd go through the same thing.  Not ONCE was I told that if I didn't pay the balance off, we'd be cancelled and charged a cancel fee.  I assumed "hey, we're paying them every month when they send the bill, and we also pay the late charge they're charging us, so there doesn't seem to be any harm."


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## daveswoodhauler (Feb 26, 2009)

ylomnstr said:
			
		

> Well they didn't have a minimum payment.  The sent us an invoice for the total amount.  We were unable to pay that all so we sent them what we could each month.  The following month, they'd send us another bill, including a late fee, with the new balance.  They'd also call to remind us that payment was due.  I'd tell them that we sent them what we did, they would say thanks, and the next month we'd go through the same thing.  Not ONCE was I told that if I didn't pay the balance off, we'd be cancelled and charged a cancel fee.  I assumed "hey, we're paying them every month when they send the bill, and we also pay the late charge they're charging us, so there doesn't seem to be any harm."



Thanks for the info.

A fee of $599 is a pretty small amount to send to collections, but I guess it would depend on how the cash flow is for your dealer.
I still vote for giving them a call and trying to make amends of the situation.....you might have already done this, but I think its worth the effort as we still don't know of what the recorded statement/contract they have on file for you.

On a side note...does your dealer take credit card payments???If so, this is what we do. I buy oil (just did today), will get the bill in about a month....about 25 days after it is delivered...I wait about 25 days....then call the dealer and let him charge my account the balance.....we have 2 cards..so I just use the one where the prior month just closed out.....bill from the credit card comes in about 30 days later, and then have another 15 days to pay....in which I do in full.

So basically, last time I bought oil was 12/3, got the bill on 1/3...paid by cc on 1/29, and I don't have the cc bill yet...should be due by 3/17. Also, get reward points from the cc company, and I think last year we were able to redeem for appx $300 in gift cards for bigname stores which helped a lot with xmas gifts. Only recommend this approach if you pay in full and budget your money well each month.

Good luck with your dilemma.
We pay off the cc in full each month...but since the banks float your money...why not float theirs.


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