b1rdman
Addicted to ArboristSite
Google "the rule of 72"...
Just got my oil "prebuy"
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Google "the rule of 72"...
KsWoodsMan
Addicted to ArboristSite
I'm not crtain how it works with home heating oil, but my ex managed a convience store and when she called in a fuel order with the suppliers it locked in the price at the time of the call. If the fuel went up in the next 2-3 days before delivered it was still at the ordered price. The price it was sold to the public would fluxuate to cover the next purchase or if managed properly allowed a profit which usually wasnt much.
I dont foresee fuel getting cheaper, ever. If I was heating with fossil fuels I would be trying to keep my tank full and buying when I did see a dip in the price not when it gets low. We cut wood a year OR MORE in advance with a secure feeling that we wont go cold if the burning season runs longer than expected. We cut it ahead of time knowing that the price of fuel to cut it is going to creep up over time. WE might even sell or give away some of the urplus to those that didn't set back enough or just didn't have the means to get what they neded before there wasn't any to be had at a reasonable price.
Buying ahead of time Is like speculating on the price. Hoping thatr what it was bought for will be less than market price when it gets delivered. If it happens that everyone buys early and the price does drop wouldnt it be prudent to buy AGAIN at the lower price when they are trying to get rid of surplusses?
I dont foresee fuel getting cheaper, ever. If I was heating with fossil fuels I would be trying to keep my tank full and buying when I did see a dip in the price not when it gets low. We cut wood a year OR MORE in advance with a secure feeling that we wont go cold if the burning season runs longer than expected. We cut it ahead of time knowing that the price of fuel to cut it is going to creep up over time. WE might even sell or give away some of the urplus to those that didn't set back enough or just didn't have the means to get what they neded before there wasn't any to be had at a reasonable price.
Buying ahead of time Is like speculating on the price. Hoping thatr what it was bought for will be less than market price when it gets delivered. If it happens that everyone buys early and the price does drop wouldnt it be prudent to buy AGAIN at the lower price when they are trying to get rid of surplusses?
KsWoodsMan
Addicted to ArboristSite
Lol , I was just thinking when I was posting earlier about "The Postman" with Kevin Costner about how he found a carton of smokes in the old roadside store and commenting on the fact that he was rich now. A little later it shows him enjoying just a little of his new found riches
The rule of 72 reminded me of "The Laws of '8' ".
Untill I googled it of course
I did like his motto " 'Things' are getting better !" .
blackdogon57
Addicted to ArboristSite
Be careful who you "prebuy" from - you may get burned
01/25/2008
A&B Fuel debacle offers lesson in pre-paying
BY KENT JACKSON AND JESSICA DURKIN
STAFF WRITERS
The bankruptcy of an oil company in Northeastern Pennsylvania can signal consumers to be cautious when paying in advance for anything from fuel to funerals.
“When you’re paying money and not walking out of the store with it, we want consumers to be extremely cautious and raise a red flag as early as possible,” said Nils Frederiksen, spokesman for the attorney general’s office.
More than 700 customers are facing the ramifications of a business deal gone bad with the closure last month of A&B Fuel home heating delivery and propane business in Clifton Township, according to the office of state Attorney General Tom Corbett.
Company owners Arthur and Beverly Baio, who are residents of Wayne County, filed Chapter 7 bankruptcy Dec. 31 on A&B Fuel, three days after closing its doors with outstanding orders on pre-paid heating oil contracts.
The Consumer Protection Bureau of the state attorney general’s office filed a lawsuit against A&B Fuel in Wayne County Court last week citing violations of state consumer protection laws.
The Baios on Tuesday filed a second bankruptcy petition, Chapter 13, that pertains to their personal assets, which have been frozen along with their corporate assets.
Intent probed
District attorney’s office officials in six counties are also investigating if there was any criminal intent by the Baios to market and sell oil to customers knowing they could not fill the orders, said Joseph Jordan, Lackawanna County district attorney chief of detectives, this week.
Officials and customers are waiting for the Baios to file a comprehensive list of assets and liabilities, including creditors. The list is normal bankruptcy procedure on which the 15-day deadline has passed for the couple, said Mark Conway, the trustee assigned to the Chapter 7 case.
Mr. Conway said he expects to file next week a motion to compel the Baios to present their creditor and debtor lists. Two major banks, Wachovia and Wells Fargo, have already submitted to the bankruptcy court creditor claims on A&B Fuel, according to court documents.
Efforts to reach the Baios or their attorneys were unsuccessful Thursday.
Demanding security
Recovering money is easier before a company files bankruptcy, Mr. Frederiksen said. The office advises consumers to watch for signs of trouble, such as failure to deliver a product on time or a litany of excuses as to why the product didn’t arrive as promised.
People pay in advance for items like gift certificates, newspaper subscriptions and even funerals. Paying with credit cards can be an advantage to the customer because credit companies can cancel charges that are disputed within 60 days, Mr. Frederiksen said.
Companies including wedding photographers, a chain of health clubs, single stores and restaurants have closed recently around the state, he said, and the size of the company doesn’t guarantee stability. Pure Weight Loss had 400 outlets around the country when it filed for bankruptcy, he said.
In the case of A&B Fuel, pre-payments for fuel might have exceeded $1 million, Mr. Frederiksen said.
“Under the law, taking money for a product you know you will not be able to deliver is a clear violation, and that’s what we feel was going on in this situation,” Mr. Frederiksen said.
Next week, state Sen. Stewart Greenleaf, R-Montgomery, plans to introduce a bill requiring oil companies to post bonds or other security on money that customers advance to them. He said Maine, Vermont, Connecticut and New Hampshire already require oil companies to post security for advance payments.
Mr. Greenleaf said an oil company in Southeastern Pennsylvania experienced difficulties this winter, but did not close. His bill is similar to a law that requires health clubs to post bonds.
“People would pay ahead of time for a year’s membership, and then the company would go out of business,” Mr. Greenleaf said.
When people pay for funerals in advance, state law requires funeral directors to put 100 percent of the money they receive into a banking institution or an insurance policy.
“The consumer should demand some form of policy (or) should have a contract with the funeral home,” said John Eirkson, executive director of the Pennsylvania Funeral Directors Association.
Filing encouraged
Thomas Tumminello, of Lake Harmony, said his family, his neighbor and the Lake Harmony Volunteer Fire Company all made advance payments to A&B Fuel.
When the company closed, he and his neighbor had to find another fuel supplier before their houses went cold.
“We hooked up with Lehigton Oil Co. They were very nice, opened our accounts. We didn’t have to pay up front,” Mr. Tumminello said.
He and his neighbor filed complaints against A&B Fuel with the Consumer Protection Bureau, an action Mr. Frederiksen encourages consumers to take as soon as they suspect trouble.
Contact the writer: [email protected], [email protected]
©The Times-Tribune 2008
01/25/2008
A&B Fuel debacle offers lesson in pre-paying
BY KENT JACKSON AND JESSICA DURKIN
STAFF WRITERS
The bankruptcy of an oil company in Northeastern Pennsylvania can signal consumers to be cautious when paying in advance for anything from fuel to funerals.
“When you’re paying money and not walking out of the store with it, we want consumers to be extremely cautious and raise a red flag as early as possible,” said Nils Frederiksen, spokesman for the attorney general’s office.
More than 700 customers are facing the ramifications of a business deal gone bad with the closure last month of A&B Fuel home heating delivery and propane business in Clifton Township, according to the office of state Attorney General Tom Corbett.
Company owners Arthur and Beverly Baio, who are residents of Wayne County, filed Chapter 7 bankruptcy Dec. 31 on A&B Fuel, three days after closing its doors with outstanding orders on pre-paid heating oil contracts.
The Consumer Protection Bureau of the state attorney general’s office filed a lawsuit against A&B Fuel in Wayne County Court last week citing violations of state consumer protection laws.
The Baios on Tuesday filed a second bankruptcy petition, Chapter 13, that pertains to their personal assets, which have been frozen along with their corporate assets.
Intent probed
District attorney’s office officials in six counties are also investigating if there was any criminal intent by the Baios to market and sell oil to customers knowing they could not fill the orders, said Joseph Jordan, Lackawanna County district attorney chief of detectives, this week.
Officials and customers are waiting for the Baios to file a comprehensive list of assets and liabilities, including creditors. The list is normal bankruptcy procedure on which the 15-day deadline has passed for the couple, said Mark Conway, the trustee assigned to the Chapter 7 case.
Mr. Conway said he expects to file next week a motion to compel the Baios to present their creditor and debtor lists. Two major banks, Wachovia and Wells Fargo, have already submitted to the bankruptcy court creditor claims on A&B Fuel, according to court documents.
Efforts to reach the Baios or their attorneys were unsuccessful Thursday.
Demanding security
Recovering money is easier before a company files bankruptcy, Mr. Frederiksen said. The office advises consumers to watch for signs of trouble, such as failure to deliver a product on time or a litany of excuses as to why the product didn’t arrive as promised.
People pay in advance for items like gift certificates, newspaper subscriptions and even funerals. Paying with credit cards can be an advantage to the customer because credit companies can cancel charges that are disputed within 60 days, Mr. Frederiksen said.
Companies including wedding photographers, a chain of health clubs, single stores and restaurants have closed recently around the state, he said, and the size of the company doesn’t guarantee stability. Pure Weight Loss had 400 outlets around the country when it filed for bankruptcy, he said.
In the case of A&B Fuel, pre-payments for fuel might have exceeded $1 million, Mr. Frederiksen said.
“Under the law, taking money for a product you know you will not be able to deliver is a clear violation, and that’s what we feel was going on in this situation,” Mr. Frederiksen said.
Next week, state Sen. Stewart Greenleaf, R-Montgomery, plans to introduce a bill requiring oil companies to post bonds or other security on money that customers advance to them. He said Maine, Vermont, Connecticut and New Hampshire already require oil companies to post security for advance payments.
Mr. Greenleaf said an oil company in Southeastern Pennsylvania experienced difficulties this winter, but did not close. His bill is similar to a law that requires health clubs to post bonds.
“People would pay ahead of time for a year’s membership, and then the company would go out of business,” Mr. Greenleaf said.
When people pay for funerals in advance, state law requires funeral directors to put 100 percent of the money they receive into a banking institution or an insurance policy.
“The consumer should demand some form of policy (or) should have a contract with the funeral home,” said John Eirkson, executive director of the Pennsylvania Funeral Directors Association.
Filing encouraged
Thomas Tumminello, of Lake Harmony, said his family, his neighbor and the Lake Harmony Volunteer Fire Company all made advance payments to A&B Fuel.
When the company closed, he and his neighbor had to find another fuel supplier before their houses went cold.
“We hooked up with Lehigton Oil Co. They were very nice, opened our accounts. We didn’t have to pay up front,” Mr. Tumminello said.
He and his neighbor filed complaints against A&B Fuel with the Consumer Protection Bureau, an action Mr. Frederiksen encourages consumers to take as soon as they suspect trouble.
Contact the writer: [email protected], [email protected]
©The Times-Tribune 2008
blackdogon57
Addicted to ArboristSite
Real careful !
Connecticut Heating Oil Dealer Arrested
November 11, 2005
A Connecticut heating oil dealer has been arrested and charged with failing to deliver on prepaid contracts for heating oil.
Lisa T. Murphy of Wethersfield was arrested by inspectors from the Office of the Chief State's Attorney on a warrant charging her with one count of Larceny in the First Degree and ten counts of Larceny in the Second Degree of a Victim Over the Age of 60.
Murphy, the owner of Libby's Oil LLC of Rocky Hill, is accused of failing to honor prepaid contracts for heating oil for 38 victims, ten of whom are senior citizens.
The prepaid contracts allow a consumer to "lock in" a price for heating oil by paying in advance for the fuel they will use throughout the heating season.
The arrest is the result of an investigation by the Department of Consumer Protection into consumer complaints that Libby's Oil was not honoring prepaid contracts.
The investigation found that while some of the victims received partial deliveries, most neither received any oil nor did they receive refunds of the money they paid to Libby's Oil under the prepaid contracts, the warrant alleges.
�Lisa Murphy enticed homeowners to sign up for prepaid heating oil contracts with lowball prices, all the while knowing that she would not be able to make delivery,� Consumer Protection Commissioner Edwin R. Rodriguez said. �This is stealing, pure and simple. It is hard enough for people to make ends meet during the heating season, and I will not tolerate this behavior in the marketplace. Anyone caught committing this type of crime will pay the same consequences.�
According to the warrant, Libby's Oil consistently offered prepaid contracts for oil at $1.40 to $1.45 per gallon from January to March 2005 when the average retail price in Connecticut was between $2.00 and $2.17 per gallon.
On April 7, 2005, the Department of Consumer Protection suspended the company's oil dealer's registration for failure to provide proof of the general liability insurance required by law, the warrant states.
The company's last known business office in Rocky Hill is closed. The Department of Consumer Protection was never notified of the closing or that the company's telephones were disconnected, the warrant states.
"This case should serve notice that consumer rip-offs will be prosecuted as the crimes that they are," said Chief State's Attorney Christopher L. Morano. "It should also serve as a reminder once again to consumers that if a deal looks too good to be true, it probably is."
The charges against Murphy are felonies carrying a maximum total prison sentence of 120 years.
Connecticut Heating Oil Dealer Arrested
November 11, 2005
A Connecticut heating oil dealer has been arrested and charged with failing to deliver on prepaid contracts for heating oil.
Lisa T. Murphy of Wethersfield was arrested by inspectors from the Office of the Chief State's Attorney on a warrant charging her with one count of Larceny in the First Degree and ten counts of Larceny in the Second Degree of a Victim Over the Age of 60.
Murphy, the owner of Libby's Oil LLC of Rocky Hill, is accused of failing to honor prepaid contracts for heating oil for 38 victims, ten of whom are senior citizens.
The prepaid contracts allow a consumer to "lock in" a price for heating oil by paying in advance for the fuel they will use throughout the heating season.
The arrest is the result of an investigation by the Department of Consumer Protection into consumer complaints that Libby's Oil was not honoring prepaid contracts.
The investigation found that while some of the victims received partial deliveries, most neither received any oil nor did they receive refunds of the money they paid to Libby's Oil under the prepaid contracts, the warrant alleges.
�Lisa Murphy enticed homeowners to sign up for prepaid heating oil contracts with lowball prices, all the while knowing that she would not be able to make delivery,� Consumer Protection Commissioner Edwin R. Rodriguez said. �This is stealing, pure and simple. It is hard enough for people to make ends meet during the heating season, and I will not tolerate this behavior in the marketplace. Anyone caught committing this type of crime will pay the same consequences.�
According to the warrant, Libby's Oil consistently offered prepaid contracts for oil at $1.40 to $1.45 per gallon from January to March 2005 when the average retail price in Connecticut was between $2.00 and $2.17 per gallon.
On April 7, 2005, the Department of Consumer Protection suspended the company's oil dealer's registration for failure to provide proof of the general liability insurance required by law, the warrant states.
The company's last known business office in Rocky Hill is closed. The Department of Consumer Protection was never notified of the closing or that the company's telephones were disconnected, the warrant states.
"This case should serve notice that consumer rip-offs will be prosecuted as the crimes that they are," said Chief State's Attorney Christopher L. Morano. "It should also serve as a reminder once again to consumers that if a deal looks too good to be true, it probably is."
The charges against Murphy are felonies carrying a maximum total prison sentence of 120 years.
blackdogon57
Addicted to ArboristSite
Good advice here if you are going to prebuy
Be Wary of Pre-Paid Heating Fuel Contracts
May 24, 2005
While it may seem that winter has just ended, and thoughts of heating fuel may be months away for many people, Connecticut Department of Consumer Protection Commissioner Edwin R. Rodriguez is urging consumers to be wary of pre-paid home heating fuel offers that may come their way in the weeks and months ahead.
"Unfortunately, we have seen several cases in recent years where consumers have eagerly signed on to pre-paid plans that promised lower fuel costs, only to be disappointed and sometimes left out in the cold by companies that were unable to meet the terms of the agreements," Rodriguez said.
"Other consumers have complained to us about penalty fees they were charged on multi-year heating oil contracts."
This year, three companies defaulted on customers' pre-paid contracts, because they found themselves in financial straits and were unable to purchase the fuel they had promised to their customers. Last year, many consumers complained to the agency about penalty fees they were charged on multi-year heating oil contracts.
The department has been working with the financially strapped fuel companies to gain restitution for those customers who had pre-paid contracts, Rodriguez said, but there are no special funds to reimburse consumers when a company fails.
Consumers who choose to sign a multi-year contract with a fuel company may find that they can't switch to a less expensive dealer the following year without paying heavy penalties on their old contract.
"I strongly urge consumers to carefully read any contract they are considering, and if they have any questions about the terms, be sure to get solid answers before they sign," Rodriguez said.
If you are thinking about pre-paying for next winter's heating oil, the Department advises you to:
• Shop around and ask questions. The cheapest price may not be the least expensive in the long run if a company cannot honor its commitments. Heating oil prices are based on a world market for petroleum products, and can be very volatile with many factors affecting price, including increased demand, natural and other disasters, and uncertain geopolitics. Nearly all of the factors related to price are beyond the control of State and Federal regulators. Consumers should be wary if the price and terms quoted by one company are significantly lower than those of competitors in the same market.
• Use an established company where you have a relationship. It is never advisable to pay a lot of money upfront to a company where the only information you have on the company is in a newspaper advertisement.
• Ask the company for customer references and call those references.
• Use a credit card with a purchase protection program to pre-pay for your fuel, if you can. This is by far the best way to protect your investment if something goes wrong with the deal.
• Ask for and keep contracts and receipts in a safe place. If you can't prove that you purchased the fuel, it may be impossible to get reimbursement if a dispute arises.
Be Wary of Pre-Paid Heating Fuel Contracts
May 24, 2005
While it may seem that winter has just ended, and thoughts of heating fuel may be months away for many people, Connecticut Department of Consumer Protection Commissioner Edwin R. Rodriguez is urging consumers to be wary of pre-paid home heating fuel offers that may come their way in the weeks and months ahead.
"Unfortunately, we have seen several cases in recent years where consumers have eagerly signed on to pre-paid plans that promised lower fuel costs, only to be disappointed and sometimes left out in the cold by companies that were unable to meet the terms of the agreements," Rodriguez said.
"Other consumers have complained to us about penalty fees they were charged on multi-year heating oil contracts."
This year, three companies defaulted on customers' pre-paid contracts, because they found themselves in financial straits and were unable to purchase the fuel they had promised to their customers. Last year, many consumers complained to the agency about penalty fees they were charged on multi-year heating oil contracts.
The department has been working with the financially strapped fuel companies to gain restitution for those customers who had pre-paid contracts, Rodriguez said, but there are no special funds to reimburse consumers when a company fails.
Consumers who choose to sign a multi-year contract with a fuel company may find that they can't switch to a less expensive dealer the following year without paying heavy penalties on their old contract.
"I strongly urge consumers to carefully read any contract they are considering, and if they have any questions about the terms, be sure to get solid answers before they sign," Rodriguez said.
If you are thinking about pre-paying for next winter's heating oil, the Department advises you to:
• Shop around and ask questions. The cheapest price may not be the least expensive in the long run if a company cannot honor its commitments. Heating oil prices are based on a world market for petroleum products, and can be very volatile with many factors affecting price, including increased demand, natural and other disasters, and uncertain geopolitics. Nearly all of the factors related to price are beyond the control of State and Federal regulators. Consumers should be wary if the price and terms quoted by one company are significantly lower than those of competitors in the same market.
• Use an established company where you have a relationship. It is never advisable to pay a lot of money upfront to a company where the only information you have on the company is in a newspaper advertisement.
• Ask the company for customer references and call those references.
• Use a credit card with a purchase protection program to pre-pay for your fuel, if you can. This is by far the best way to protect your investment if something goes wrong with the deal.
• Ask for and keep contracts and receipts in a safe place. If you can't prove that you purchased the fuel, it may be impossible to get reimbursement if a dispute arises.
