Ridiculous business practices

[rh71]

My oil company (local so it don't matter who) sends me a piece of mail this week that asks me to sign up for a balanced payment plan. They're saying that I can now even-out my monthly payments... well seeing that I moved in at the start of friggin winter and have been paying ~$170/mo., I can get on this plan for $125/mo. and any balance will be evened out at the end of the year.

Well fvck them... now that I don't need their oil much at all for the next 6 months, they're asking that I still pay $125/mo. and they'll just balance it out later. Where was this piecemail back in November ?!

 

[HappyPuppy]

We've been on our natural gas company's level pay plan for several years and it's great. We don't get hit with whopping bills in the winter.

If you start now paying a little more, next winter your bills will be lower. Up to you.

 

[Pilsnerpete]

You should do it. They'll have to suck it up next winter.

 

[her209]

Sign up for it and then abvse the fvck out of it.

 

[Pilsnerpete]

No. See...it's not free. You still have to pay for what you use. It just evens it out through the year.

 

[AmerDoux]

The level pay plan has become quite common. The fact that your gas bill wildly fluctuates is the entire purpose for it. Most people are hit hard during the winter months and their gas bills are outrageous. The level pay plan is there for people who would like spread those bills out over the year. Although I am not certain, I believe they generally send this option out to new clients after gathering 6 months worth of payment data. They need at least this to base the amount of your payments. At the end of the year, if you have overpaid, they will apply your overpayments to your next bill(s) until it is spent. Concurrently, if you have underpaid you will need to pay off the balance due. But, your level plan will then be re-evaluated and monthly payment adjusted as needed for the upcoming year.

 

[her209]

Originally posted by: AmerDoux
The level pay plan has become quite common. The fact that your gas bill wildly fluctuates is the entire purpose for it. Most people are hit hard during the winter months and their gas bills are outrageous. The level pay plan is there for people who would like spread those bills out over the year. Although I am not certain, I believe they generally send this option out to new clients after gathering 6 months worth of payment data. They need at least this to base the amount of your payments. At the end of the year, if you have overpaid, they will apply your overpayments to your next bill(s) until it is spent. Concurrently, if you have underpaid you will need to pay off the balance due. But, your level plan will then be re-evaluated and monthly payment adjusted as needed for the upcoming year.

Its all 'bout the interest to them. The more people that sign up to pay ahead means more interest.

 

[Pilsnerpete]

Originally posted by: AmerDoux
The level pay plan has become quite common. The fact that your gas bill wildly fluctuates is the entire purpose for it. Most people are hit hard during the winter months and their gas bills are outrageous. The level pay plan is there for people who would like spread those bills out over the year. Although I am not certain, I believe they generally send this option out to new clients after gathering 6 months worth of payment data. They need at least this to base the amount of your payments. At the end of the year, if you have overpaid, they will apply your overpayments to your next bill(s) until it is spent. Concurrently, if you have underpaid you will need to pay off the balance due. But, your level plan will then be re-evaluated and monthly payment adjusted as needed for the upcoming year.

I'm a man of few words cause my attention span allows me to type only a few words at a time. But I knew that!! lol

 

[AthlonXP]

go over there with a baseball bat and beat everyone.

 

[rh71]

Some of you guys aren't really understanding my point here... I understand balancing out my payments so I'm not hit hard all at once (winter season). The point is:

1) I pay ~$170/mo. for 3-4 months out of the year... and haven't needed a refill for 2 months (no charge). Based on these figures (I've only been a customer for < 6 months so far).. they want me to pay $125/mo. and they'll "balance" it out at the end of the year. Do you know how much I'd be overpaying in the end ?

$150-$170 for 3-4 months vs. their balance plan of $125 for 12 months... HMM.

2) Seems fishy they're approaching me with this "pay this amount per month now" thing when the summer is coming... when they aren't likely to get any money otherwise. Offer it to me during my 3rd month (it was still winter then)... not now when you're not needed.

Don't get me wrong, they're a good company and came when I needed them. It's just that this is kind of underhanded... and doesn't benefit me in the least... even though this $125/mo. balanced plan was supposed to be customized for my usage. Yeah, if it were winter for 11 months out of the year.

 

[Pilsnerpete]

Put the extra money in YOUR savings acct and keep the interest for yoursef! Kind of a winter fuel fund.

 

[AmerDoux]

Originally posted by: rh71
Some of you guys aren't really understanding my point here... I understand balancing out my payments so I'm not hit hard all at once (winter season). The point is:

1) I pay ~$170/mo. for 3-4 months out of the year... and haven't needed a refill for 2 months (no charge). Based on these figures (I've only been a customer for < 6 months so far).. they want me to pay $125/mo. and they'll "balance" it out at the end of the year. Do you know how much I'd be overpaying in the end ?

$150-$170 for 3-4 months vs. their balance plan of $125 for 12 months... HMM.

2) Seems fishy they're approaching me with this "pay this amount per month now" thing when the summer is coming... when they aren't likely to get any money otherwise. Offer it to me during my 3rd month (it was still winter then)... not now when you're not needed.

Don't get me wrong, they're a good company and came when I needed them. It's just that this is kind of underhanded... and doesn't benefit me in the least... even though this $125/mo. balanced plan was supposed to be customized for my usage. Yeah, if it were winter for 11 months out of the year.

I understand your point. Since they only have the expensive winters months data, it is waaayyyy higher than what it realistically should be. However, they are required to give you a dollar amount based singularly on what bills you have paid. Since you are a new client and those bills are only from the highest months of the year (winter) your level pay plan is high. It's not that they are trying to rip you off, they only have that particular data to use as a basis. If you are interested in utilizing this, your best option is to wait a full year and then join.

 

[Yossarian]

Originally posted by: rh71
Some of you guys aren't really understanding my point here... I understand balancing out my payments so I'm not hit hard all at once (winter season). The point is:

1) I pay ~$170/mo. for 3-4 months out of the year... and haven't needed a refill for 2 months (no charge). Based on these figures (I've only been a customer for < 6 months so far).. they want me to pay $125/mo. and they'll "balance" it out at the end of the year. Do you know how much I'd be overpaying in the end ?

$150-$170 for 3-4 months vs. their balance plan of $125 for 12 months... HMM.

2) Seems fishy they're approaching me with this "pay this amount per month now" thing when the summer is coming... when they aren't likely to get any money otherwise. Offer it to me during my 3rd month (it was still winter then)... not now when you're not needed.

Don't get me wrong, they're a good company and came when I needed them. It's just that this is kind of underhanded... and doesn't benefit me in the least... even though this $125/mo. balanced plan was supposed to be customized for my usage. Yeah, if it were winter for 11 months out of the year.

Why don't you estimate what you'll use during the year, divide it by 12, then offer that to the company?

 

[chiwawa626]

I love California weather

 

[rh71]

Originally posted by: chiwawa626
I love California weather

How's your electric bill?

 

[wyvrn]

They will continue to recalculate the payment so that in a year's time, you will be paying less than $125/month. But right now that is all the data they have to go on. You could just pay monthly for another 6 months and then sign up on that plan after they have a year's worth of data for you. It's not a scam though.

Its all 'bout the interest to them. The more people that sign up to pay ahead means more interest.

So what about the interest lost when you are underpaying them during the winter (in TX it would be Summer because of heat)? The interest they earn for a few months would not offset the interest lost during the rest of the year. It would actually be in the company's best interest to charge exactly what you owe each month because they would not have to hold any money in reserve to cover their costs for the most expensive months when customers are underpaying. I think it is just a convenience thing because of all the complaints they get during the high usage months when people cannot pay their bills.

 

[CPA]

I really don't understand why you are getting in such a tizzy about this and why you call this underhanded. You DON'T have to do it. It's called choice! Many people would be bitchin' if the oil company got rid of this type of plan.