News Release
For Immediate Release
January 18, 2008
Contact:
Aaron Zappia
(215) 657-7700

Greenleaf to Introduce Legislation to Protect Consumers Entering into Prepaid Heating Oil Contracts

HARRISBURG—Senator Stewart J. Greenleaf (R Montgomery / Bucks) plans to introduce legislation to protect consumers who enter into prepaid contracts for home heating oil, kerosene, or liquefied petroleum gas.

Two eastern Pennsylvania heating oil companies have failed to deliver oil to consumers who entered into prepaid contracts in 2007, one filing for bankruptcy leaving out in the cold many customers who had entered into prepaid contracts for fuel.  A newspaper report indicates that the company had $1.7 million in prepaid accounts.  According to other reports, residents of Chester, Montgomery and Bucks counties have lost between $900 and $12,000 in un-honored contracts.  While the Attorney General is investigating these cases and has the power to seek compensation for consumers impacted by this situation, there is no guarantee that these consumers will be made whole.

Senator Greenleaf's legislation would require retail home heating fuel dealers to provide security for any prepaid fuel contracts they offer to their customers.  The proposal would require retail fuel dealers that enter into prepaid contracts to document that they have future contracts, a surety bond, or a letter of credit to assure the consumer that the dealer can adequately supply them with fuel for the length of the contract.

"We must ensure that consumers are protected, many of whom are disabled, senior citizens, and low income families," said Senator Greenleaf.  "This is not only an issue of consumer protection, but in some cases life and death in these cold winter months."