Forum
« Recycle/Crush old bricks Deck Question - 30' Restriction »
May 19, 2009
OIL COMPANY ISSUE
Anyone have experience with and/or advice regarding home heating oil company trying to charge "early termination fee" after buying oil from them for years and then discovering that oil co. was charging much more per gallon than the going rate? (We had no written contract, but the company says they have a recording of a conversation that they say is the contract!)
Comments
Ha, ha, ha, ha, ha.
Posted by: Putnamdenizen at May 19, 2009 11:16 AM
You should knife the tires of their delivery truck. Then yell, "How's that for early termination!" Or something of that sort.
Posted by: tybur6 at May 19, 2009 11:25 AM
Ask to hear the recording. There's obviously no long-term contract. Report them to the BBB and elsewhere. Threaten to file a lawsuit for back charges. They'll back down. If you're paying automatically by credit card then cancel the card and just walk away from them.
Posted by: daveinbedstuy at May 19, 2009 11:26 AM
I'm assuming that they need proof of the contract. Mention that you need a contract in writing to avoid the statute of frauds, and that no court would ever uphold an oral contract in this situation. (I'm not sure this is true, but hey, throw some legal language around and it might work.) Also, you can say to them that there was no consideration for the contract, and as such anything they might think was a contract is not valid. Last, you can tell them that if they don't refund you the fee, you will report them to the better business bureau, give them terrible reviews online, and report them to any other state agencies you possibly can for overcharging you for the fee and the oil.
Posted by: theklahy at May 19, 2009 11:28 AM
Thanks for comments after #1. The first one made me think I had posted on the wrong blog. Will still appreciate hearing from anyone who has had similar problem. We are getting multiple dunning/threatening calls every day day. They want $399 for early termination plus late payment fees. We paid for every gallong of oil they delivered.
Posted by: AAR at May 19, 2009 11:36 AM
Check out Consumerist for good tips on approaching this.
Don't bother talking to them anymore. Send a letter confirming that you'd like service terminated immediately and that you never saw nor signed any contract detailing a term of service or early termination fee.
Posted by: serpentor at May 19, 2009 11:36 AM
Sorry if you didn't understand the import of my comment. My fault, tone is impossible to gauge on the web. I was suggesting that should be your response to them. They are pulling your leg. They are acting like thugs. Ignore them. File complaints.
Posted by: Putnamdenizen at May 19, 2009 11:47 AM
And number 2 was better? (Smile)
Posted by: Putnamdenizen at May 19, 2009 11:48 AM
Oh yeah, if you really want to, it's fairly easy to file a lawsuit in small claims court. You might consider doing it if they don't back off. I think you should call and explain and demand a refund and a stop to the harassment, and then also write a threatening letter with the same information.
http://www.nycourts.gov/courts/nyc/smallclaims/index.shtml
http://www.nycourts.gov/courts/nyc/smallclaims/represent.shtml
Posted by: theklahy at May 19, 2009 12:15 PM
But as I understand it, no one has either's money or oil, so this all seems failry inexplicable, and as I wrote, thuggish. What would the OP sue for?
Posted by: Putnamdenizen at May 19, 2009 12:41 PM
Sue for a refund of the termination fee and late fees (over $399), is my understanding. It only costs about $50 (if I remember correctly, plus a little more to hire a server if you don't have a friend who will do it) to sue in small claims court. You could probably tack on a couple hundred for the harassment as punitive damages. It might be worth it if AAR is angry enough and has the energy to do research and follow it up. It might even be worth it to fill out the forms and send the company a copy as in "here's what's coming" if you don't refund me the money.
Posted by: theklahy at May 19, 2009 12:53 PM
OP hasn't paid the 399. S/he is being harrassed to pay it. Which s/he should not. Ever.
Posted by: Putnamdenizen at May 19, 2009 1:37 PM
call the NY City department of consumers affair(through 311)
or on line at
http://www.nyc.gov/html/dca/html/contact/contact_form.shtml
BTW an oral contract is still a contract the issue is proving it(and a recording is good proof).
The problem with small claims court is they do substantial justice without following the letter of the law so if they have your voice on a recording saying you agree to a one year contract with a termination clause you may be liable but I don't think DCA likes those agreements.
The Statue of Frauds requires some contracts to be in writing not all contracts must be in writing.
Posted by: smeyer418 at May 19, 2009 1:40 PM
Thank you everyone, including Putnamdenizen. Your correct in gathering that I did not understand your attitude. I appreciate the clarification. Just to clarify our situation. We have refused to pay the "early termination fee and late fees." I've told the company that we do not owe them anything and they shouldn't have been charging long-term (many years) customers more than community going rates, which were more than $1/gallon more than several other companies. So, since we haven't paid, we can't go to small claims court. I will express to them my intent to file with BBB and also include the company's name on the blog if they don't stop. Will let Brownstoner know the outcome....Thanks again.
I would still be pleased to hear from anyone else who has had this problem.
Posted by: AAR at May 19, 2009 1:49 PM
I can't believe that nobody has asked...
Who is the oil co so we will know to avoid them?
Posted by: phripley at May 19, 2009 2:36 PM
Post a comment
Please be patient while your comment is published. It may take a moment.