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MxEnergy / fraud/fixed price scam

1 Hammond, IN, United States Review updated:

Please don't make the mistake I did. Late August 2008 I had 2 men come to my home from mxenergy stating that they could save me money on my gas bill. My husband and I listened then proceeded to call Nipsco. Immediately after talking to nipsco I told them no and closed my door. I thought that was the end of it. It seemed fishy and I really didn't want to change my provider. Last month I receive my high bill once again...only this time it was over $1000.00. I nearly jumped out of my skin. I called nipsco and they said I have an agreement with mxenergy and i would have to call them. After talking to many a mxenergy rep, I knew I had been scammed. I was told that I didn't have to sign anything to get me signed up. And if I wanted to end the contract (which I didn't approve in the first place) I would have to pay $150.00. I asked to see the contract...they don't have one. I asked to hear the recording where I approved this...they don't have one.. So I don't know what else to do. I'm going to an attorney but I hear that it's really hard to go up against these scam companies. Can someone help please...

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  • Sc
      22nd of Jan, 2009
    -1 Votes

    Stop that company!!

  • Ma
      24th of Feb, 2009
    0 Votes

    scammedmommyof4, I would like to know if you showed them your Nipsco bill?? and/or gave them your name?? This information would be very useful, thank you.

    I got visited by the company recently and they said they were from my gas company but I refused to give them any information since they were obviously not from my gas company (1 clue - the badge was from mxenergy).

    If scammedmommyof4 did show them her bill then that's how they got her since all they need is a name and/or the account number.

    Please everyone be careful, always do your research before making any changes and more if it involves a long term contract. Also never give out information without asking why - sometimes this even includes your name.

    The utility companies will never come by unless you called them. Be safe by being aware.

  • Bu
      29th of Apr, 2009
    -1 Votes

    I had a very similar incident with MXEnergy in Michigan. Fortunately for me and unfortunately for MXEnergy, I was out of state at the time of the alleged transaction. There was no proof of agreement to switch and they violated a number of Michigan laws. After a large amount of time, effort and some money, I convinced them that it was in their best interests to back down. They did, but still shortchanged me several dollars. Here's what I did:
    1. Called MXEnergy without results.
    2. Called and filed a written informal complaint against them with the Michigan Public Service Commission.
    3. Wrote them at their registered Michigan Agent Address, which was returned as undeliverable and also copied them at their Maryland customer service address with copies to the Michigan Atty General and the MPSC.
    4. They attempted to justify their fraudulent activity by stating that they had mailed to me the required copies of agreements and contracts timely by mailing these documents to a third party who had no authority to make any changes to gas service whom they claimed to have contacted. This was easily rebutted since in the same letter they admitted that they had determined that I was the account holder of record. They further attempted to advise me to file a criminal complaint against their victim. Obviously, this was not done.

    5. I withheld payment and placed moneys in an escrow account and notified Michigan Consolidated Gas Company (regulated utility) of same until this matter could be settled or adjudicated.
    6. After correspondence changed hands several times, MXEnergy initially refused, then relented in releasing me from what they claim is a signed contract and then accused the third party of committing fraud by falsely asserting that the third party had the authority to change service.
    7. After several months of discussion, I finally wrote them advising them that I would pursue the matter in the Washtenaw County Michigan Circuit Court as well as request the filing of a Formal Contested Proceeding before the Administrative Law Judge for the MPSC as they are regulated by the MPSC.

    At that point they relented. They refunded about 90% of the money they took under false pretenses, reversed their actions and released my service back to the regulated utility.

    I suggest you look to your public service commission in Indiana, study the Indiana laws and utilities regulations and orders under which they are permitted to operate. I would file a written complaint with them, copied to the appropriate Indiana authorities within the public utilities regulators and a copy to the Indiana Attorney General, advising them of the MXEnergy scam.

    This company's headquarters is in Stamford, Connecticut, and they have been in trouble in Michigan, New York and now, apparently, Indiana for "slamming" utilities customers. Michigan itself has a zero tolerance policy and the company that slams can be penalized adminstratively $20, 000 with a substantial portion of that going to the victim.

    You are not alone in this. There are others. If you are persistent, you may get somewhere. You may want to investigate a small claims court action against them as well.

    As others have noted, do not share utilities bills/account numbers with anyone. If anyone does want to give you a "money saving deal" they do not need those bills. They should be able to give you the information you need by estimating the heating degree days where you live, knowing the volume of heating gas used in 1 mid-winter month and estimating from there. If they can't well, you don't need to consider them any further.

    I encourage everyone who has been victimized in this manner to make lots of noise, in writing with the company, the regulators and the state attorneys general. Only if enough of us vigorously contest these actions will it force the companies to behave honestly, or in the alternative, the states to stomp on dishonesty hard.

  • Mo
      30th of Sep, 2009
    0 Votes

    Mx Energry is a bunch of bull-### they tell you that they are going to lower your gas bills but really what they are doing is making your gas bills higher and they don't pay you on time this is a bad company if you want to know more about mxenergy call your B.B.B and ask them the grade that they got it is a big fat F they are no good so if they come to your door tell them that u don't want it because all they going to do is make your gas bill higher and higher

  • Pa
      25th of Feb, 2010
    0 Votes

    @ Money321, It sounds like you are a disgruntled employee.

    MxEnergy is wonderful here in Michigan they person I talked to at the door was very friendly and very helpful, he even left me with his cell phone number in case I had any questions after he left. Since deregulating I have saved lots of money!!! It was great timing too he gave me a 6 month fixed rate with NO cancellation fee(I did complete the phone call and they told me that on the phone too), and the best part about it is that the next month after deregulating natural gas prices went up. I watch it very closely due to all the complaints I have read, but so far it has been a god-send.

  • My
      12th of May, 2010
    0 Votes

    The only people who complain about the company is people who dont understand it and how it works...I went with mx and my bill remained low because i kno how it operates and if you dont take the time to listen and understand instaed most of you guys have seletive hearing so you hear what you want but I like the company no complaints

  • Un
      15th of May, 2010
    0 Votes

    What alot of people don't know is that MX Energy is a 3rd Party Supplier only. The fixed rates that they are offered is guarantee not to fluctuate while being in a variable rate with Utilities do. MX Energy calculates supply charges based on consumption and rate offered and with some utilities include Gross Receipt tax that all. The Utility company tells MX how much was consumed on either gas or electric and they calculate and gives that supply charges to utility to be added in the bill. So MX is not a scam. So depending how much you use of gas or electric your supply charge will vary. Utility companies will always charge for distribution and reading meter charges while having MX or another supplier. So if you see that the consumption amount is incorrect you have to call your Utility company to check the meter because maybe your meter is not working right or some utilities can have actual or estimate readings made. Hope this is a better understanding of how 3rd party suppliers work.

  • Ma
      17th of May, 2010
    0 Votes

    Just had a run in with Mx.. The lady was very pushy, insisted on seeing my bill. When I told her we do it all online she told me go bring it up right now so we can see it. I then said my husband has the password and such. She asked me when he would be home. I informed her he works third shift and she wanted to know what time he got up. I told her no and asked if she had any info about the company, she handed me a pamphlet with her name and number on it. After she left I went to my computer and looked it up. I saw many people saying it is a scam, so outraged I stormed outside and she was just leaving a neighbors house. I called her over and said here take this, It aint gonna happen. She asked why, and I told her I looked them up on the internet. She said did you go to something something .com? I said duh everything on the computer just about is .com. I then slammed the door. DO NOT DO BUSINESS WITH THEM!

  • Mi
      1st of Jul, 2010
    0 Votes

    Whether or not MX Energy is going to supposedly lower your bill or not, the way they do business is very WRONG. I just had a woman come to my door acting extremely friendly and asked me for my energy bill. Of course, I did not give it to her. She acted as though she was "partners" with my current energy company here in Michigan and just wanted to do me a "favor" and make sure I wasn't getting charged too much. Thankfully a couple of winters ago we had this same issue with a company called Universal Gas and Electric. They too used the same deceitful techniques. I am appalled that there are companies out there who will prey on unsuspecting people. I am a stay at home mom and was right in the middle of trying to help my 3 year old use the toilet and had my 10 month old trying to crawl out the door while she was talking to me. It took me a square look in her eye... using her name... and FIRMLY telling her that I was NOT interested in what the company had to offer. Listen... no regular utility company just comes walking up to your door offering to lower your bill. NO COMPANY DOES THIS UNLESS THEY ARE GOING TO GET SOMETHING OUT OF IT.

  • Aa
      29th of Jul, 2010
    -1 Votes

    MX Energy was awesome for me, I have saved at least $5- $10.00 per month and Im on a variable rate. There is no contract and I can leave when ever I decide with no early termination fees. True it is not alot of money that Im saving but over time I can see the benefit of their service. Some savings beat no savings any day.

  • Sy
      25th of Jan, 2011
    0 Votes

    They kept calling me for weeks and weeks, and finally talked me into " saving money". What a biggest mistake I did . First of all they did not send any brochures or any info nor a contract, as I requested. First month was (not even full month) no charges and then --- shock!!! First I was and still am being charge dfor the delivery from my local company and then the bizarre amount from those crooks. When I checked my statement called them up right away, and after talking with their illiterate staff, finally transferred to the supervisor found out I will be charged a termination fee of $150.00 . That was just the beginning, the January statement is still showing charges from them, so I called my local company and we will see if they will be able to back up the charges, if not I will have to contact the lawyer in this matter. I am so sorry I picked that phone up and listened to those liars. Beware of those crooks!!! Do not be fooled by offered savings, it's a bunch of lies and lies !!! Where do I go with this to get help?

  • Mo
      8th of Apr, 2011
    +1 Votes

    I singed up with MX Energy for the variable rate, no contract plan. I just received my first bill with MX as the gas provider and I saved $.02 per CCF for a grand total of $1.68 off 84 CCF's. So I don't think it is a scam, but it is also not a very very big savings.

  • Jj
      2nd of Jul, 2011
    0 Votes

    the reason that you are getting those 2 charges sylvetka1 is that mxenergy only takes care of the supply part you will always have the delivery charges from the utility cause they own all the pipes and send the gas thats provided by mxenergy. when you choose a supplier the utility stops charging the rate but continues charging for reading the meter, for delivering the gas and for fixing the pipes like they always have done even when you dont have a supplier.the only thing that changes when you choose a supplier will be the rate from the utilitys rate to mxenergys or any supplier that you choose rate. i hope that this explination helps you understand a little bit better why you get those charges.

  • Wo
      16th of May, 2012
    0 Votes

    Bear with me, this is leangthly, but my calculations seam legit... I'll try and post later if I remember.

    I live in Lansing, Michigan, and a guy came to my door today (5/16/2012) and explained to me how it supposedly works.
    He also gave me a paper explaining to me the terms.
    I receive "service" through Consumers Energy, so consumers still charges fees to check the meter, and distribution costs etc.
    What changes is MXEnergy supplies the gas to consumers (the listing of GasCostRecovery on my bill) instead of and unknown supplier.

    My terms with MXEnergy are, I pay $4.89 per Mcf for 12 billing cycles.
    I have 30 days to cancel without fee.
    Between the 30days and 12 months if I cancel there is a $50.00 (fifty dollar) fee.
    30-60 days before the end of my 12 month term I will be sent a renewal letter were I accept or discontinue/choose another company.

    I said OK, received the call with him standing there and said OK to the lady on the phone to the things on the paper. Offhand, because I keep close track of my bills, I knew $4.89 was cheaper than what I was paying. I was nervous about it being a scam of some sort, for the fact it's a door to door person saying they would save me money... etc.

    I did that, then actually sat down and calculated it out to get an idea if I wanted to immediately cancel, if i just screwed myself etc. And I started Google'ing to get some reviews/opinions/etc. I found this page...

    Well, below are my calculations, and I'll go with this and see what happens, I'll try and post back on here after a bill of two, I bookmarked it. I seams the last post was July 2011, so... whatever

    History billing...
    My last bill was $5.45 per Mcf for GasCostRecovery, and GasCostRecovery was 57% of the cost of my bill, I used 10Mcf last month.
    1 month ago it was $5.26 per Mcf.
    2 months ago it was $6.10 per Mcf
    3 months ago it was $6.23 per Mcf
    1 year ago it was $6.36 per Mcf.
    2 years ago it was $6.84

    I did calculations for the past 6 months (weather was cold so my total bill was over $100 each month).
    In 6 months I used 104.5 Mcf total, with an average cost per Mcf of $6.0095, and my total bills from Consumers was $1037.79
    104.5 x $6.0095 = $627.99
    104.5 x $4.89 = $511.00
    $1, 037.79 - $627.99 + $511.00 = $920.80
    $1, 037.79 - $920.80 = $116.99

    So I would have saved $116.99 total for the cold 6 months
    More theoretical things below...

    $1, 037.79 / 6months = $172 . 96 average
    $920.80 / 6months = $153 . 46 average
    === $19.50 per month AVERAGE savings over 6 months

    The most expensive month recently was January at $229.66 total, used 23.1 Mcf, $6.2363 per Mcf. With this MxSavings the theoretical bill would have been $198.56, which is $31.10 cheaper...

    We shall see?

  • Ra
      5th of Jul, 2012
    0 Votes

    Mxenergy has now changed They are now called constellation

  • Fl
      28th of May, 2013
    0 Votes

    I use to work for mxenergy in Michigan and I never received a check from them

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