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Direct Energy Services review: Negative option contract renewal! 47

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Author of the review
12:00 am EST
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This review was chosen algorithmically as the most valued customer feedback.

In 2001 I signed a five year natural gas contract with Direct Energy. The contract was due to expire in August 2006. Around May of 2006 I received in the mail a large envelope with a contract renewal form. Direct Energy was offering me another five year contract for 44 cents a cubic meter. The price of gas through Enbridge at the time was around 34 cents, so I decided to put the contract aside for a while and watch what gas prices were doing. (Prices are approximate. I am operating from memory.)

Well, prices went down. One article I read said there was a temporary oversupply, and further price reductions were a possibility. (At the time of this post, February 2007, the price through Enbridge is 31.5 cents.) I decided not to renew.

Around November of 2006 I happened to notice my gas bill was unusually high. When I looked at it closely, I was surprised to see that not only was I still paying to Direct Energy, but the rate was a staggering 49.9 cents a cubic meter. I had not thrown out any of the contract renewal papers, so I went through them carefully. Surprise! If you want to discontinue your contract you have to sign a form and mail it to them. I signed and dated the form and sent it to them via registered mail.

When my January bill came I was surprised once again. I was still paying to Direct Energy. After more checking, I discovered I was too late. I could only withdraw from the contract within 35 days of my first bill, which would have made the deadline some time in October. I am stuck paying this rip off rate until August 2007.

I have two complaints with this company. First, the entire practice of negative option contract renewals is a scam. A contract should be something you sign to get into, not something you have to sign to get out of. Second, their rate of 49.9 cents, when the going price is 31.5 cents, is an outrageous rip off.

No doubt, Direct Energy would say this is my fault for not reading the contract renewal in its entirety when I first received it. Perhaps. But I would prefer to do business with a company that isn't hovering like a vulture waiting for me to make a mistake so they can pick the flesh from my bones.

My advice to anyone dealing with this company - Don't expect them to be honorable or honest. Go over everything you get from them with a fine tooth comb, preferably with a lawyer present.

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47 comments
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Just Jim
, CA
Mar 01, 2017 11:39 am EST
Verified customer This comment was posted by a verified customer. Learn more

My 90 year old neighbour came to me in tears about 4 years ago, "I can't afford to keep my home."

Se showed me her Direct Energy (door-to-door energy reseller) bill for over $1000 for one month of natural gas! The rate was 45 cents/M3; going rate with Enbridge (owner of the infrastructure was about 18 cents/M3.

They were using "negative option contracts", if you don't object to the new rate (after the fixed period was over), you got the new rate. For close to 7 years her rate increased. She was ESL and didn't understand the legalese used in the notices and simply filed them. [someone else with the same problem. Direct Energy — Negative option contract renewal! ]

On her behave, my conversation with the VP's office was basically around the question, "How they could morally take advantage of seniors this way" and that I wondered if my cousin, who worked for W5, would think this would be a good story? Then suggested that she should probably be getting some money back.

I got her out of the contract immediately, the agent I spoke to commented, "I've never seen a contract cancelled so fast, normally it takes a month or two, " and money back, apparently, "A lot of money" back.

About a month later, Market Place did actually do a story on this practice and I believe negative option contracts have since been banned.

When the smoke cleared, she admitted to me that she also had also signed contracts with Direct Energy for her Electricity and boiler maintenance! They inspected her boiler and tagged it [a very common practice!], saying it could not be fixed under the contract. I made other arrangements for it to be replaced. The Electrical was still in the "fixed price phase".

Direct Energy, after the bad press, changed their name to Enercare. Such a nice name...

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Finola
Richmond Hill, CA
Aug 31, 2016 7:53 am EDT

I have a Maytag washer that has now been broken for weeks I have had 4 appointments for service 2 calls were missed and twice they sent a Whirlpool service person that does not work on Maytag! I am on the phone with them as I write this and have been for the last 43.52 minutes, they not only expect me to take another day off work (that would be 5 days of vacation for NOTHING) and will not come for another week. I have asked them to escalate this and was put on hold while being transferred…..can you believe they transferred me to WHIRLPOOL!

The Direct Energy Home Services plan has not only cost me 1 week of vacation time but has given the WORST service I have ever encountered. BYER BE WARE!

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Ron Crabtree
,
Aug 31, 2016 7:53 am EDT

It appears that this is a company that doesn't recognize Canada's Thankgiving. My latest billing had a due date of Oct 8th (Thanksgiving) when Canadian banks were closed. I paid the bill through online banking on Oct 5th (Friday) but because of the weekend and Thanksgiving this was not noted as received until Oct 9th. (It shows as paid on Oct 5th) I was charged a late penalty (the bill shows payment received on the 9th). Calling the 888 number had this corrected (or it will be on the next bill hopefully).

How many others were also charged a penalty due to a Canadian-based misunderstanding?

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Concerned2012
, US
Aug 31, 2016 7:53 am EDT
Verified customer This comment was posted by a verified customer. Learn more

A young woman came to my door with a Comed bill attached to a clipboard stating that she was checking with Comed customers to make sure they were aware of charges incurred which were not legitimate. Although she never stated she was from Comed, she certainly insinuated it, prompting me to ask if she had been sent by Comed.

She never answered me directly, just kept restating her purpose was to rid me of the erroneous charges once I signed up giving her authorization to do so. I quickly told her I was not interested and although persistent, she was eventually on her way.

I don't have an issue with new companies trying to offer energy alternatives, however, I do have a problem with deceptive peddling.

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somal
, US
Jul 27, 2016 7:47 am EDT

I signed up for direct energy three years ago and when i decided to move out of my apartment i was very optimistic that they will refund my $200 deposit. they also told me it will be refunded to me after one month. I did not recieve my money and they won't refund it to me. Can any one help me please.

Thank you very much

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Phillrodrigues79
London, CA
May 11, 2014 10:58 pm EDT
Verified customer This comment was posted by a verified customer. Learn more

With regards to the water heater from direct energy, I regret to inform that we have been without water heating since Thursday evening (3 days and counting).

The repairman showed up at 18:30 of Friday (may 9th) and informed me that a spare part had to be shipped in order for him to proceed with the repair. He assured me that the part would be delivered until 3 pm of Saturday. Only upon arrival of the part, I would be able to schedule the repair. No parts arrived on Saturday, however.

I called direct energy's emergency phone Saturday still and after a one hour phone call, I was promised by their customer service supervisor that a part would be expedited to my house Sunday. Sunday came and went and no parts arrived whatsoever. I called the emergency line again (another hour on the phone) and the customer service supervisor advised me to heat the water on the stove so we could shower if we needed hot water so badly!

I asked them if they could replace the heater altogether for a newer model that they might have in inventory. Thus I could have the heater functioning Sunday still. All I got was laughs. The supervisor (Chuck) even said that he could not give me any estimated date for repair and that if I wanted to follow up to speed the repair up it would be up to me to call them and follow up with the status of the part shipping.

Anyway, my family just spent mother's day weekend taking showers at friends' houses and even though I understand hot water is not the most necessary of home utilities, I find this situation outrageous and humiliating. After all I understand that I'm paying for this service and direct energy showed no consideration for my situation. The service provided by direct energy has proven to be below standards.

The protocol number for my repair call is [protected].

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JamesRSmith
Coquitlam, CA
Jul 04, 2011 7:54 pm EDT

Hello, htis complaint is to let others that deal with this firm does business. The business contract requires that both parties must benefit from the contract, both parties have responsibilities to uphold and maintain. I have tries to cancell this service contract with them becuase the alleged savings were never delivered. The first cheque mailed to their PO Box never arrived and now the second cheque never arrived? I find this odd as I have never had a problem with Canada Post and missing mail. I called the firm and it appears that the offices are in disaray and the people are not adequately trained in the system employed by the firm. My suggestion would be to use registered mail only when dealing with this firm, only use Canada Post Registered mail because the PO Box is owned by Canada Post.

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Peter Pshyk
Calgary, CA
Apr 14, 2015 5:36 pm EDT

The biggest liars that I have ever encountered, with a yellow streak down their back. No customer service in Calgary, no matter how many times I have requested for a physical address for a customer service discussion face to face .no answer. Any call you make to them is answered in a foreign country by people who cannot have the command of the English language. In Calgary Alberta Canada all Direct energy calls are all answered in a foreign country. This brain dead mentality is unbelievable, you have an emergency you phone, the call goes to a foreign country then the person who answered the phone has to assess the problem then try to connect to the right branch in Canada. Now fathom this, the cost of your cell phone call to a foreign country. And what the HELL is our government doing about it absolutley nothing, cause they do not want to lose the financial contributions to their re election funding. There is only one way to describe the two CEO's of Direct Energy, the white one, and the black one, is Corporate Financial Pedophiles, they will screw you out of every cent they can

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walkerwilliam91
Provo, US
Dec 20, 2013 3:24 pm EST

I feel like there are a lot of things that could make this ok and other things not. I need to look at all of my options.

William | http://www.aplusheatandair.ca/

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Rose125
Toronto, CA
Oct 11, 2013 12:15 pm EDT

Direct Energy is threatening to cut my gas supply...due to the July 8th, 2013 storm, most of our basement got little or lots of water in our basements. I called DE because like most, our power went out and pilot light in our water heater was diffused. I only got 3 or 4 inches of water which was clean, no sewage because I have a backwater valve to prevent entry of sewage. I also have a sump pump which stopped working because of the power outage, however, once the power came back on, the water was gone within minutes. First DE tech came to see, unplugged the water heater and automatically said i need a new tank...didn't check inside, didn't check the breakers, nothing! I wasn't happy...i called for another opinion, and the second DE tech came, he didn't even plug the unit in to see if it worked...he said he would order a new tank...i still wasn't happy so when they called me to bring a new tank I said to hold on...the next day, i plugged the unit in myself and miraculously, I had hot water! I didn't call Direct Energy back. A month went by and I get a bill for $1400+ I called and asked what it was for, they said for the replacement of a new tank! They did NOT replace the tank but they're not forcing me to have a third tech come to CHECK to see if the tank is working properly because they're concerned with my health and safety? What? So if I'm RENTING this tank, why aren't they just replacing it for free? We don't even have a contract but we have "terms and conditions". So now, three months later, I'm still fighting with them...and they're not threatening to cut my gas supply if I do not replace the tank! What do I do now? Such scammers... My brother had 16 inchest of sewage and DE told him he just needed a part? The second tech went to my brothers and said he needed a new tank? Does the right hand talk to the left?

AuntieSpamming
AuntieSpamming
Albuquerque, US
Jan 29, 2012 6:13 pm EST
Verified customer This comment was posted by a verified customer. Learn more

Never show any doorknocker your bill. They'll sign you up in a heartbeat. Energy companies hire out to sales companies. They, in turn, will do or say anything to get that bill and sign you up.

Concerned, good of you to take time to mention this. So many people get scammed into contracts this way (Auntie nearly did a few years ago!).

Best answer to send them packing fast: "No thank you. We already get service from your company."

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JamesRSmith
Coquitlam, CA
Jul 06, 2011 1:22 am EDT

Hello, me again. I recieved conformation in the mail today that the account will be cancelled and that I will being back to the original account and distributor/retailer.

In response to you comment I continued to overpay for the service I wanted cancelled at a much earlier date that's what matters.

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mississaugauser_b
, CA
Mar 21, 2011 4:30 pm EDT

YES, I totally agree, they behave miserable. They come to your door saying sign with us because you will save money long term speaking. They JUST lie to you. Solution : if you are e begin of your contract and they ask you for huge amount cancellation fee just rent your place to a friend who will than pay normal price to Enbridge and call Enbridge and tell that you move.
In fact you don't move anywhere just get rid of those pigs.
I was in such case paying 49.9 while Enbridge was charging 13.9. Is just miserable and is a huge surprise WHY government allow them to scam and foolish consumers .

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angelina33
, US
Feb 02, 2011 9:36 pm EST

I only wish, I have found this site earlier. It is now clear to me, the business practices of D.E. are fraudulent.
Never talk to people that come to your door! Call the police, they are all con artists. D.E. has forged signatures on contracts, used Collection letters to scare customers into extending their contracts.

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Robert Meyer
Niagara Falls, CA
Jun 15, 2010 10:36 pm EDT
Verified customer This comment was posted by a verified customer. Learn more

I can't assist in all cases where consumers are encountering problems with Direct Energy, but if you entered into a natural gas supply contract with Direct Energy / Enbridge Home Services in Ontario around 2002, and your contract was renewed without your consent, I've set up a free website (directenergyrefunds.blogspot.com) showing you how you can potentially claim a very large refund from Direct Energy, as I've done.

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protest001
Missouri City, US
May 17, 2010 4:29 pm EDT
Verified customer This comment was posted by a verified customer. Learn more

Well,
I'm going to Teach Direct energy a lesson. Honestly, I was late to make a payment, so they cut my light off. I got on the Phone, and made full payment, then asked when my light would be back on. They put me on hold, and went to hold a meeting. When the line came back, they said I need to pay a Deposit and open a new account 'cos the old one has been closed. What happened to my Good 'ole deposit? They said that would be processed by another department. I needed light so bad to continue listing on ebay, so I paid another $300.00 for deposit and other fees, so, new account was opened and 6 days latter, new light was turned on. Okay, you'll think it will be another 30 days before they cut my light off again ... You're wrong! They cut me off 12 days into a new contract in which they haven't sent the first bill for payment all, and they still owed me money the old account they had closed for their own reasons. I call them, they said they were sorry, and it was Centerpoint that cut me off. Okay, I had been acting like I'm petting this S.O.B. Direct Energy by giving Center Point a recognition as their cut ON/OFF company ... I think that's my mistake, because I didn't sign any deal with Center Point, I did with Direct Energy. Then another illetracy on the part of Direct Energy is the fact that I would make payment on the phone, get confirmation code, and they'll say they can't guaranttee that my light would not be cut off in the next 48 working hours that they set for my payment to clear. Now this kind of Bully Rule has led them to cut off my light more than 6 times in my lifetime. This is as if I'm the one who's supposed to 1. buy Diret energy a more efficient or faster Automated processing machine that will clear payment faster, 2. Like I'm the one who set up a Good 'ole Boy online reception Sister Company for them ... so they can legally charge people extra to make payments (ONLY IN AMERICA) which does slow clearance down, 3. As if I was the one who stationed Direct Energy in Dallas while they poorly cordinate with a third party Install & Terminate Company called Center Point in Houston.
I learn not again to be with any out-of-town Comapany that makes you deal with two Companies.
One more thing, there's too much mystery in the World (I don't like that); How come anytime Direct Energy would cut my light off, it would be Fridays at around 4 or 5 pm ... perhaps to teach me a lesson since Center point doesn't do dirty jobs on weekends.
I will have the last Laugh, considering Texas has the most Tough and wicked Lawyers who hate the guts of the useless Corporate Americans.
If there's anyone out there who had been dragged thru the mud like me by direct energy, my name is Felix and my email is fflocoboy56@gmail.com, let us get in touch and talk about how we are going to make Direct energy go back home to MaMa legally. Please my contact is not for solicitation, I never received one and if I start to receive one as a result of this writing, I will spoof it to the appropriate Internet authority. I'm NOT interested in buying anything or signing with another company ... I'm staying with Direct Energy till I finish them legally. Again, if I receive solicitation to buy or enroll on anything, I will spoof for Spam report and then change the close up this address.
I don't care where Direct energy got the audacity to treat Customers like they do, I don't care who they know, I don't care whose election campaign they have funded, nothing will stop me. This is what I plan to do:

Fort Bend County Courthouse here I come, and I have enough reasons to win my case because there's a lot of oversites on the side of Direct Energy. But if I don't win, I plan to sit infront of the Courthouse on Hunger strike till the arrival of all major media World-wide, including the CNN.

justice in the name of God!

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DE Victim
Bethany, CA
May 06, 2010 8:55 am EDT

Direct Energy told my blind mother she had "signed" a contract with these people and were charging her way over the local utility. She threatened legal action and they backed off. I signed a deal for electricity for one year at a good rate then if I didn't cancel it would go up more than the utility. Of course the renewal date came and went and of course they don't remind you that you are about to get hosed. So now my Hydro bills have never been higher and I am locked in. My fault. How can they even adverise that they will save you money. I guess that's how they buy sports arena's and convention centres. I sincerely hope for their sake that a DE rep doesn't call me or step on my property. It is a scam company. Stay away at all costs because you will pay stupid amounts for your energy needs. Stay with your local utility.

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hassel
Brantford, CA
Feb 17, 2010 8:15 am EST

I am having an awful time with Direct Energy. I have been a customer for 7 years. I looked at my bill and have discovered that I am being charged triple to what Union Gas would be charging me. I phoned Direct Energy and wanted to know what they can do about this. This said that is the best rate that they can give me which was 35.80 a cubic meter and that the cancellation fee would be 700.00. Just ridiculous. My contract has my ex-husbands name on it and an incorrect phone nbr. Shouldn't this contract be null and void. I had found two other bills that were under another supplier, I had phoned them and had no problems coming to an agreement. I never knew this would be such a nightmare and how I am being taken advantage of. What can I do?

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Dennis Tatomir
Leamington, CA
Jan 08, 2010 2:35 pm EST

TO ANYONE PAYING THEIR GAS OR HYDRO BILL, "DO NOT USE DIRECT ENERGY". THEY ARE SCAMMERS. STAY WITH YOUR LOCAL SUPPLIERS IN YOUR AREA. THEY USE NON-PROFESSIONAL SERVICE & TRY TO SUCK IN PEOPLE WHO ARE UNAWARE OF THE SERVICE BY THE LOCAL SUPPLIER. I HAVE HELPED MY SON & HIS WIFE GET OUT OF THEIR CONTRACT & THEY SHOW NO REMORSE IN SIGNING A FAMILY TO THEIR FIVE YEAR CONTRACT, WHICH IS UNETHICAL & INSULTING. OVER CHARGING AN OUTRAGIOUS AMOUNT & MAKE IT VERY DIFFICULT TO VOID. THEY ARE PATHETIC & SHOULD BE OUT OF BUSINESS. WATCH OUT FOR UNIVERSAL ENERGY & DIRECT ENERGY, IF SOMEONE KNOCKS ON YOUR DOOR TO SEE YOUR LAST MONTH BILL. TELL THEM TO GET OFF YOUR PROPERTY & CALL THE POLICE IMMEDIATELY. I HAVE CONTACTED MY LAWYER & THEY WILL BE SUED IF ON MY PROPERTY.

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traceyls4
Ottawa, CA
Jul 22, 2009 12:31 pm EDT

I would be interested in a class action lawsuit - I have had the same experience with Direct Energy - I cannot understand how anything this company does is of benefit to the consumer. Negative contracting is wrong and it should be illegal - what kind of company wants to make money by exploiting people? I am stuck paying 49.9 cents instead of 17 cents... I warn everyone I know about Direct energy and I am writing my MPP to complain.
Tracey

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william
Ottawa, CA
Apr 24, 2009 4:07 pm EDT
Verified customer This comment was posted by a verified customer. Learn more

How about a class lawsuit? Here is a letter I sent to my MPP
April 23, 2009

Mme. Madeleine Meilleur
MPP/deputée
Ottawa-Vanier
237 ch. Montreal Road
Ottawa, ON K1L 6C7

Dear Madam,

In the last few years I invested a lot to render my house energy efficient and to reduce my heating bills. However I was quite surprised when in March my accumulated gas bills were over $1500 whereas the total amount for last year, ending in July, was $1000. When I checked the bill I noticed that I was being charged 49.9 cents/cubic meter whereas Enbridge’s rate was 23.5 cents.

I called Enbridge, they told me that I had a contract with Direct Energy and that I could not go back to them unless the provider authorized it.

I called Direct Energy and was told that I had signed a contract in 2003 for 5 years at 25 cents/cm, that it expired in November 2008, that I had an opportunity to renew or cancel it through their mailing and since I have not done so they had the right to renew my contract for one year at 49 cents, and that I will have another opportunity to stop it at the end of the new contract which I have not signed. Cancelling the “contract” would involve more than $220 in penalty and would take two months to take effect. The fact that I never received their mailing where supposedly I had the opportunity to discontinue the contract was irrelevant because from their point of view the letter had been sent.

I called then the Ontario Energy Board. I was told that when I signed the contract in 2003 there was a provision that I had to cancel in writing to the provider at the end of the contract. Apparently this provision was discontinued for those who signed after 2005. I was told that I could not get out of this contract because Enbridge enforced it. I then wrote a letter of complaint to OEB [protected]) but they said that they were only enforcing existing law.

I find it strange that a monopoly like Enbridge enforces contracts of a third party. If I change a telephone provider from say Rogers to Bell, the later will not enforce my contract with the previous provider. I find it even stranger that I am bound to a contract that I had never signed. I find it shocking that a company that mails a great amount of publicity where there is no distinction for contracts being mailed can have the OEB support them even when the consumer has not received it. Renewing a contract at more the double the going rate without the consent of the consumer is clearly an abuse and it is supported by law. The system seems to be set up to shortchange the consumer through a monopoly that enforces it. What is the intent of this situation? To trick consumers? The agent at the Ontario Energy Board told me that I could complain to my MPP. I hope you look into this situation where the existing law clearly goes against the interest of the citizens.

Yours sincerely

William Weiss
235 Stewart Street
Ottawa ON K1N 6N5
[protected]
wweiss@uottawa.ca

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gdc
, CA
Feb 20, 2009 9:55 am EST

In 2003, I signed a 5 year natural gas contract with Direct Energy. The contract expired in early January 2009.
On my January 2009 bill, I noticed the old contract rate of 26.7 / M3 and then for the remainder of January, I was billed at 49.9 / M3.
I checked my neighbor’s Enbridge gas bill and they were paying 30.52 / M3.
I called Enbridge to find out what was up and they told me that I was buying through a retailer, Direct Energy.
I called Direct Energy and spoke to their rep. I asked why I was paying this new expensive rate when my 5-year contract had expired with them. The rep said that I was sent a package a few months ago indicating that if I do not respond to them in writing, that they would automatically sign me up to a new 2 year plan. You can guess my reaction…. I told him that this was unacceptable, illegal and that I wanted this terminated right away. He then offered to lower my rate under the contract. I then re-explained that I did not sign up for this new contract, do not want this contract and want this terminate NOW.

He obliged, terminated the contract and gave me a reference number.
I then told him that I wanted a refund for $62.53 for the difference between the Enbridge rate and the Direct Energy rate on this bill. He could not send me a credit but agreed to “submit a complaint” and gave me another reference number.

What credible company on this planet would do negative option. Second, their rate of 49.9 cents, when the going price is 31.5 cents, is an outrageous rip off … this is ridiculous.

I would advise people to not do business with Direct Energy until these practices change.

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Nill
ny, US
Feb 02, 2009 8:06 pm EST

ARE YOU IN NEW YORK STATE?
FILE YOUR COMPLAINT HERE ON LINE>>>>>http://www.dps.state.ny.us/complaints.html

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Terry Cowan
,
Nov 03, 2008 6:53 pm EST

I have experienced a similar difficulty as John Orth with the exception that I immediately chose the option to decline contract renewal immediately when I received the notification from Direct Energy at the end of the 5 year term. This was in January 2008. I called them to confirm this with them and make sure that we would no longer be a customer of theirs which they agreed to. Since that point i have made numerous phone calls to which I receive the same outright lies and deceipt on their part as every month my bills come there is Direct Energy yet again. I have continued paying my bills but am now taking much stronger action with this disgusting company.

The sad part is that if any of us exhibited this kind of behaviour there would be dire consequences. This company has been fined numerous times both in Canada and the USA, pays the fines (which in comparison to the huge income they are making scamming us are miniscule) and carries on. They have been known to disregard orders from courts and other offences that any of the rest of us would surely end up in jail for, numerous articles about their behaviour in the media;

copy and paste into your browser to see articles from The Calgary Herald for a good example.

http://www.ontariotenants.ca/electricity/articles/2004/ch304e16.phtml

The big question here for all of us is how do we stop them? They are protected somehow by our structure of laws. I for one think that we require an immediate permanent Federal solution to shut them down, and legally so.

To any of you reading this that work for Direct Energy all I can say is do yourself a favour and find a descent job where you can work with integrity for a change. I was relatively nice to the last one of you that showed up at my door (just kicked you out and off my property) however I am researching what charges I can bring against the next one that shows up, at the very least. Count on the fact that it will not be an enjoyable experience for you as the thing I dislike more than anything else in this world is the manipulative dishonesty you and your company consistantly display. You should be ashamed, if you're not you're just lieing to yourself as well as the rest of us. Disgusting.

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Ion Filotti
,
Sep 12, 2008 4:05 pm EDT

Fraud alert – Direct Energy

1. Direct Energy's Manitoba subsidiary, Municipal Gas, was sanctioned after agents were caught using graphs that suggested heating prices would skyrocket in an effort to help sell contracts. (http://www.ontariotenants.ca/electricity/articles/2004/ch104e16.phtml)

2. Direct Energy's U.S. affiliate, Energy America, was fined in Georgia for similar fraud in 2000.In Georgia, agents were caught giving misleading sales pitches and coercing homeowners to buy utility contracts. Consumers were automatically enrolled with the company despite refusing Energy America's offers. (http://www.ontariotenants.ca/electricity/articles/2004/ch004e16.phtml)
You are contacted by phone but you turned down the offer as you already had satisfactory agreement with other marketer, and when Direct Energy agents repetitively called you clearly specified that you do not want a contract with them, and indeed you didn’t sign any contract with Direct Energy. The fact they Direct Energy enrolled you without your confirmation is typical fraud.

3. You are enrolled without your knowledge and later receive a remittance from Direct Energy that since you have another distributor Direct Energy has to cancel your contract with penalty.

4. Ontario Energy Board fined Direct Energy in 2004 for violating the board's code of conduct for marketers by forging customers’ signatures (http://www.ontariotenants.ca/electricity/articles/2004/ch304e16.phtml)

5. Negative contracts. The entire practice of negative option contract renewals is a scam. A contract should be something you sign to get into, not something you have to sign to get out of.
(Direct Energy — Negative option contract renewal!)

Recommended actions:
- file a complaint with BBB (Better Business Bureau)
- report the fraud to OEB (Ontario Energy Board)
- report the fraud to Police Fraud Department

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lorna ward
,
Jun 22, 2008 9:01 pm EDT

Because of direct energys constant harassment my freind commited
suicide. The funeral was yesterday

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lorna ward
,
Jun 22, 2008 8:57 pm EDT

Because of direct energy's constant harrassment my freind
commitited suicide. what a terrible thing the funeral was yesterday.

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Annette Pickard
,
May 05, 2008 9:58 am EDT

negative contracts should be illegal.

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foggy
Toronto, CA
Apr 29, 2008 7:30 am EDT

5 yrs ago my elderly neighbour was deceived into signing up for a Direct Energy gas contract. Afterward she asked me if it was a good deal. Of course I said no, and at her request, we cancelled the contract. About a month later another rep came to her door and again got her to accept another contract by telling her that he was from the gas company. I gave up, the rate was not that bad.

Well now her renewal notice has come, and it is a negative option, in which they (DE) have the right to renew without her signing anything. Even worse here's a snippet of the notice:

If you do not choose a 5 year renewal or cancel your Price Protection Plan agreement, we may, at our option, renew your agreement for 1 year at the price for a 1 year renewal set out in the covering letter delivered with this form and in accordance with the revised terms and conditions enclosed. You may cancel your 1 year agreement within 35 days after you receive your first bill with the renewal price.

I'm not a lawyer but to me the paragraph above indicates that even if you cancel, they will renew and you will again have to cancel the renewal.

DE is total ###! And what's even worse is that they are owned by Enbridge, our gas supply utility. They clearly have no morals, and the OEB must know exactly what's going on. Write to your MPP. Deregulation(gas or hydro) simply means that there are now more hands in your pocket!

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lorna ward
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Apr 22, 2008 6:15 pm EDT

I WENT TO MY LOCAL NEWSPAPER PUT A HUGE LETTER IN THE
PAPER WARNING EVERYONE TO TELL DIRECT ENERGY TO GET LOST! THEY ARE CON ARTIST''S LIER'S DOING EVERY TRICK
IN THE BOOK TO GET PEOPLE TO SIGN THESE CONTRACT'S WHICH THEY ARE BOUND TO !.
REMEMBER IF YOU SIGN YOU CAN'T GET OUT!
MAYBE THE PROV GOV SHOULD REVOKE THEIR
LICENCE FOR DISHONEST BUISNESS PRACTICES !

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Eric Buckley
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Apr 22, 2008 4:47 pm EDT

Direct energy is no different than an internet scam artist that will bilk innocent trusting people out of hard earned money.

2 years ago a representative came to my door and told me i was paying too much to my local gas utility and that rates were going up.

being honest and trustworthy toward a representative who should know more about the gas prices than I, i signed a 5 year contract thinking i would save money.

2 nights ago another representative from Direct energy came by again and told me there is a good possibility i''m paying too much for my gas and he asked to see my current bill . Being conncerned because he was with the company that i signed with, i got my bill and he told me that infact my rate was some 16 cents higher than the local utility. (i had no idea what rates i was paying or what the local utility was charging).

He then went to tell me that he can offer me the gas for only 12 cents a unit higher than the utilty if i signed for 5 more years. Hmm.. sound stupid to you also? Well i got very irate with this person and ordered him off my property. Withing minutes i called Direct Energy and a representative tried to calm me and offered me yet another rate.. this one only 8 cents higher than the local utility.

Do they think i'm dumb? do they think your dumb? or anyone.. i think the answer is yes ! they prey on the ingnorant and tell you anything you want to sign you up.

THEY ARE NO DIFFERENT THAN AN INTERNET SCAM.. THEY LIE TO YOU AND TELL YOU WHAT THEY CAN TO GET YOU TO SIGN... TELL YOUR FAMILY AND FRIENDS TO PAY THE LOCAL UTILITY.

I figured i've paid them and additional 300.00 in the past year based on current prices. That is BS and i can't believe we are stuck in a contract for 5 yrs. They are robbing me and you ! how can we make this stop?

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Mike
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Apr 02, 2008 6:26 pm EDT

I was caught on the negative billing option too, only not as bad. I, like everyone here, agree that the company is a scam. When I called about their pricing, they had said the going rate at Enbridge Gas was 40 cents and, at 35 cents, Direct Energy was lower. Enbridge was only charging 26 cents. The people who work at Direct Energy will outright lie to you.

On the negative billing option, I was charged higher than the going rate at Direct Energy. They renewed the contract at the 'Green' rate which is 2 cents more. The money goes to the company; it does not give the money to environmental causes but keeps it to itself to for 'Green' capital investments. What a joke...scam. Nobody would ever knowingly agree to the Green rate. It is only a trick, a way to renew customers bills at a rate 2 cents higher than the basic contract rate.

This company is a sham and their business practices are fraudulent.

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david aconito
,
Mar 27, 2008 7:48 am EDT

DE is a company with no sense of professionalism. Its only mission is to maximize profits at any cost and misrepresenting and lying to potential or existing customers is an accepatble strategy.

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lorna ward
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Mar 20, 2008 6:18 pm EDT

DE SHOULD HAVE THEIR LICENCE REVOKED!

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Karks
,
Mar 20, 2008 6:13 am EDT

Dealing with DE/GS is a pain in the _____ and even worse when you have to deal with their bull dogs (CGC - Collection Group).

I suggest that you review the below and make sure you know your rights

Collection Agencies Act - Ministry of Government and Consumer Services
http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90c14_e.htm
http://www.gov.on.ca/mgs/en/ConsProt/STEL02_045978.html

Ontario Energy Board
http://www.oeb.gov.on.ca/html/en/consumers/complaint/index.htm

Know your rights - Collection Agencies will try and bully payments out of you, but will not have proper invoices or contracts to back up their claims.

I suggest when speaking with anyone DE or Collection Agency to write down and ask for - Names, Times, Collection Licence numbers, promises, reference numbers, invoice numbers, invoice amounts... and If available record all your conversations with them. Most important - Stay calm cool and collected - there is no point in lowering yourself to their sub level standards.

If anything - Ask to speak to their Legal Department, Management, or Ombudsman.

Request anything that they are sending you to be by registered letter or courier - Also do the same when sending information to them. Never send DE or Collection Agencies original copies.

Hope all that are fighting the supposed debts find relief and this information helps.

Don't give up... that is what they want.

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lorna ward
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Mar 18, 2008 8:27 pm EDT

LIKE I SAID SCAMMERS!

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Frank Palkovits
,
Mar 18, 2008 7:13 pm EDT

Well - so much for corporate trustworthiness - scam is all I can say. The public has been duped. I have almost the excat story as Tammu Emond, and have been on the phone for 1 year since we have moved. The negative contract, etc was renewed by DE in Nov 2006 (admitingly I did not inform myself of the fine print). However, when I called in Februaty 2007 to cancel, there was a simple agreement to do so and no other words. In July of 2007, DE is still on mu bill. I continue to call and ask for cancellations, and they repeat that there is no paper work for February. Further phone callis in Agust, Spetember, October and November. At this point, I really don`t care about February, just that they now have my call recorded as it says in their electronic phone reception, and they have not provided paper work. Each person I speak with acknowledges the complaint, but nothing is done. By Novemeber, I have sent a nasty email, gotten into a heated dsucssion with a another person at DE, and finally extracted a commitment on the phone to have us off DE contract by January of 2008. It is now March and still no change.

Are we to continue to take this totally unacceptable business practice on daily basis - isn`t it time a class action suit is brought against these clowns - everyday they`re charging an additional 25-33% higher fee for gas and getting richer by not doing anything - it is in their interest BIG TIME to NOT do anything.

Time we did. I called my lawyer today. I have begun a process with the OEB and tomorrow will contact my MPP and MP.

Collectively we can do a lot more than one voice at a time!

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lorna ward
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Jan 31, 2008 4:04 pm EST

DIRECT ENERGY SCAMMERS PLEASE EVERYONE OUT THERE DO NOT DO BUISSNESS WITH DIRECT ENERGY!

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Tammy Emond
,
Jan 30, 2008 10:48 am EST

In 2006, I entered into an agreement with Direct Energy for the provision of natural gas to my then current address. In June 2007, we moved from this address to a temporary location (rental) while our new home was being built. In late May 2007, we received a letter from Direct Energy advising us that we still had an agreement with them, and that if we elected not to renew, we would be required to pay an early termination fee of $912.66. As we had not even moved into our new home yet, we advised Direct Energy via one of the many harassing phone calls received by their customer service department (they called almost every two days, like vultures...), that once we had moved into our house, we would be in touch.

In the interim, we attempted to locate our original written agreement with Direct Energy as we were under the impression that it was only applicable to our previous address. Unfortunately, with the move and unpacking, we were not able to find our copy.

In August of 2007 we moved into our new home and decided, based mostly on our irritation with Direct Energy, not to renew with them. In early November, we received a letter from Collection Group of Canada Inc. on behalf of Direct Energy, demanding the amount of $912.66. Following this letter, I placed a call to Direct Energy requesting a paper copy of my contract so I could verify the terms and conditions with respect to having to carry these services over to our new address.

Direct Energy never responded to this request, and the paperwork was never received by us. On November 30th, Collection Group of Canada Inc. sent a second letter on Direct Energy’s behalf demanding, in an incredibly threatening tone, that we pay the $912.66 immedidately “to avoid embarrassment – and to govern myself accordingly”. Needless to say, I was not impressed.

Following this second letter, I called Direct Energy again and requested a paper copy of my contract which they assured me would be forthcoming. December 18th, Direct Energy sent me a voice recorded telephone call between myself and one of their representatives from November 2006 in which I agree to subscribe as per the terms of my agreement (duh! )

I called Direct Energy AGAIN on January 3rd, and requested a PAPER copy of my contract. Again, it was never sent.

We received a third letter from Collection Group of Canada dated January 2, 2008 advising me that the matter was being turned over to their legal department as I had failed to pay the $912.66 to Direct Energy. Once again, I am advised to “govern myself accordingly”.

This time, and at the recommendation of the Ontario Energy Board I send a letter to Direct Energy (a more senior person) explaining the problem. The same day I get a call from one of his employees promising to send us a copy of the contract.

Yesterday, I received a 4th letter from Collection Group of Canada's legal department advising that they are commencing legal action against me.

I have been extremely patient in trying to get to the bottom of this matter and have requested on at least four occasions for the proper documentation to verify what Direct Energy has told me about the carryover of my contract to my new address. To date, no one has been able to produce anything to me which leads me to believe that my original suspicions are correct and that I have no further obligations to Direct Energy. I have to believe that they are trying to scare me (bully, scam, or whatever you want to call it) into renewing my contract with them.

I have now submitted a formal complaint to the Ontario Energy Board, and have been in touch with my Member of Parliament about this ongoing harassment.

I am embarrassed that I ever agreed to enter into an arrangement with this organization, and intend to make sure that anyone that will listen to me knows what they are really about.

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lorna ward
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Jan 02, 2008 6:24 pm EST

YOU ARE RIGHT THIS SHOULD NOT BE LEGAL I HOPE EVERYONE IN CANADA AND THE UNITED STATES IS READING THIS!

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