Consumer Law, Warranties No usage fee from propane company

[oopsinlawrenceo]

My jurisdiction is: Ohio

I have been charged $175.00 for failure to meet minimum propane purchase levels from Ferrellgas, based in Overland Park , Ks.
In August,2008 I received a new Master Agreement for Propane Sales and Equipment Rental which stated that I must accept the terms outlined or contact Ferrellgas within 30 days and terminate service.
There was still over 200 gallons of propane from a delivery in August, 2007 which I had already paid for in the 500 gal. tank which I rent from them at $40 per year. I use this propane as my main home heating source and feel that I was not given opportunity to dispose of (use) this fuel and terminate service satisfactorily.
The clause these charges were based on is vaguely worded and sets no definite time frame for charges, so I did not understand their intent.
Can they legally charge me for not buying their product? That seems to me a dangerous precedent. Am I bound by a new contract I did not sign or agree to?
Can a class action suit be filed to recover all such charges for customers?

 

[Michael Wechsler]

I'd start by myself instead of thinking class action. I'm sure the other customers are upset as well and the company would be aware of this issue. Did you speak to them yet? Why not try that first, don't back down but be strong and courteous. That's step one. Perhaps they might agree with you.

 

[oopsinlawrenceo]

Thank you so much for responding.
I don't speak well when angry, so I sent a complaint letter instead of payment marked; attn. account supervisor.
I said if they persist I intend to e-mail letters to editors to as many papers in their service area as I could. I said I would also write all my state and federal senators and representatives, and was considering seeking an attorney willing to file a class action suit, admitting that I am uninformed as to relevant laws, but saw no harm in seeking advice on the matter.

 

[Michael Wechsler]

I think you need to do a little research on what other companies are providing in your area. The clause could be enforceable but there are some issues, besides any applicable consumer protection laws, such as the fact that you didn't sign the agreement. That's a big one in your favor. Be ready to switch to another utility company and you should probably let them know that this is what you're doing. Perhaps they will change their tune and offer you the old agreement for a certain period of time, which you can accept, make arrangements to leave later and still call the newspapers.

 

[oopsinlawrenceo]

You were right!
I found another local supplier with no such policy and a smaller tank available.
Ferrellgas called me in response to my letter to say they were removing the charges. When the paid for gas is gone they'll remove the tank.
Thank you sincerely for your very helpful advice.

OOPS