- Report: #536728
Complaint Review: AAA Gas & Appliance Company - Henderson North Carolina
Reported By:
Dusty H -
Middleburg, North Carolina, United States of America
Submitted:
Updated:
-
Author Not Confirmed
Why?
AAA Gas & Appliance Company
213 Young Street Henderson, 27536-4250 North Carolina, United States of America
Phone:
(252) 492-1138
Web:
Categories:
Business Rating:
(0)
Tell us has your experience with this business or person been good?
AAA Gas & Appliance Company Prejudicial Refusal of Service, Unethical Extortion of High Security Deposit for Cash on Delivery Service Henderson, North Carolina
The residents of the Henderson, North Carolina area need to be aware of the business practices of AAA Gas & Appliance Company. I have encountered a problem with them that is beyond my contempt and beneath my understanding. I was treated with unconscionable prejudice and found their deposit requirement extortive. Normally, I'm not one to complain about a business. When I have a bad customer service experience, I just take my business elsewhere.
First let me give you a little background on what led us up to this situation and how we got here. While we lived in Pennsylvania, my friend was looking for a new apartment about five years ago. We were both men in our 40's and share a lot of common interests. His wife passed away some years ago and his three children are all adults living in Florida on their own. We came to the conclusion it would make sense if we could find a nice two bedroom apartment and share expenses.
It so happened that old friends of mine own a row of Victorian town homes that have been fully restored and renovated, and they where looking for new tenants. The house was beautiful and the rent was a bargain at only $550.00 a month. In the years we lived there we only had one rent increase of $25.00; bringing the rent up to $575.00 a month. Our living arrangement was extremely successful. He had a well paying job with a defense contractor, and I have a steady independent income and good credit. We were able to maintain an upper middle class lifestyle with no major outstanding debt.
Looking toward our retirements we had discussed for some time about buying a house in North Carolina. We knew that our local property taxes in PA were about to drastically increase which would mean our rent would also drastically increase. PP&L electric rates increased by 30%, our water bill increased by 50%, and UGI Gas also took a sharp increase. And, since neither of us were originally native to the area we decided it was time to move.
Every year for three years we vacationed in North Carolina and looked at several properties. A beautiful southern state, ranging from the seashore to the mountains, with very friendly people. We knew that this is where we wanted to call home. Finally, during the collapse of the mortgage industry we found the perfect 110 year old, move in ready, country home with about two acres for only $63,900.00!
I can tell you it was no small feat securing a mortgage during the height of the economic meltdown of 2009. We were able to take advantage of the new USDA fixed rate loan at 5%. This meant that our mortgage payments were going to be much less than we formerly paid in rent. Very happily we moved into our new home.
With the economy in shambles and the unemployment rate high it proved to be another daunting task to secure reasonable employment. It took four months to find a job, which ended up depleting our bank accounts, but every mortgage payment was made on time.
In late November the weather was turning colder and our 320 gallon propane tank is just about empty. The sticker on the tank gave the phone number for AAA Gas and Appliance Company in Henderson, NC. I called their office to find out how I would get propane delivered and they said I'd have to come in person to apply for credit and set up an account, since I was new to the area and have never been a customer. I thought this shouldn't be any problem. I just secured a loan from Wells Fargo to buy a house, so I shouldn't have any problem passing the AAA Gas credit screening.
I did the application and the customer service rep Karen said she would run the credit check and call me that evening or no later than noon the next day. She didn't call. Three days later I got a short letter in the mail saying that they would not extend credit to me for some very vague reasons. I think there was a $150.00 medical bill that was probably turned over to collection, but four months without work we had no choice but to hold off on paying that bill. And, I had no firm date to give the hospital when I could pay it.
I called AAA Gas again to discuss the matter, but Karen was absolutely unyielding on extending credit. Her tone and demeanor from this point on was terse verging on rude, almost hostile. So I said, "How about I buy 100 gallons, cash in advance, plus a delivery charge if necessary. That would probably be enough to heat the house for at least the next month." She flatly refused to do a cash sale for the propane. Then, she informed me that they would require a $550.00 deposit before I could purchase the propane by paying cash in advance! A deposit on what? At this point I'm not asking for credit, this is going to be a cash transaction. We went around in circles for at least 15 minutes. Me saying I don't want a credit account now, I'll just pay cash. Her saying that they do cash transactions, but not without a $550.00 security deposit. Me asking why, because there is nothing to secure if I pay, in full, in advance. At this point I gave up on this exchange and told her "I'll call back after I review my options and see what I can arrange." Meaning: I'm going to find another company to do business with.
I called all the other propane distributors in our region and found only two that service my local area. Both told me they would be happy to do "cash on delivery" service, but only the company that owns the can tank fill it. Unless you privately own your tank and then any company can provide service. Now, this $550.00 "security deposit" is looking more like "felony extortion". Even if it's not illegal, it's certainly unethical. Some nights, the temperature is dropping down into the 20's and we've had some very cold rainy days.
Eventually, I do want to buy our own tank, but right now we can't afford the purchase, delivery, and inspection fees plus fuel cost. And, we need heat as soon as possible. So, I needed to speak with someone in upper management at AAA Gas.
Leland Pendergrass is the general manager of AAA Gas & Appliance Company in Henderson, NC. He seemed sympathetic to our situation and agreed that we should be able to work it out. He claimed they didn't know we owned the house. (Strange, I declared that on the credit application. And, their office remembered me from my mortgage closing process; we had to buy the remaining gas in the tank from the former owners. In July, AAA Gas had to send someone to the property to determine the amount in the tank and provide me with the current market rate.) He needed to discuss a solution with someone else and would call us back the next day. He did call back the next day, but nothing had changed. They were still requiring a $550.00 deposit for cash in advance service.
The next step was to speak with the owner of the company, Thompson Betts. Again, Thompson was sympathetic and agreed that during these tough economic times their company needs to review and adjust their policies accordingly. I was thinking to myself, "Well do it. Your the owner and this isn't a large national company. You have what? Maybe four storefronts?". Of course, he needed to consult with someone else and he would call us back the next day.
Thompson didn't call the next day, his lieutenant Hal did. Nothing had changed. He did reveal some of their reasons why. The house we now own and live in as our primary residents was used as a rental for the last 11 years. The tenants changed frequently and were mostly deadbeats; they defaulted on their bills. So now we are being treated with prejudice because of the irresponsibility of people we don't even know!
I was absolutely at the end of the rope with AAA Gas & Appliance Company. We told Hal to send someone to come get their tank, we will never, ever, do business with them. The next day he called back and offered to allow us to buy 50 gallons in cash but after that we would still be required a $550.00 deposit. Our answer was "NO! Now, come get your tank or we are going to sue you for a daily storage fee!" Maybe that was an over reaction, but it would have been worth the civil suit filing fee just to drag them into court.
The next day a AAA Gas delivery truck showed up at the house. The driver was very polite, professional, and completely unaware of our problem with his company. I'm glad we were home to stop him from delivering. It did bring some questions to my mind, "Were they intending to fill the tank and obligate us for the bill after we expressly informed them that we didn't want their service?" and "Was their billing department then going to tack on an additional $550.00 deposit?". We wrote "Pull Tank Now!" on the delivery order and sent the driver on his way.
They came in the afternoon of the next day and collected the now empty tank. They had actually went to the wrong house that morning and pulled the wrong tank! That gave us a good laugh. The men who came to do the removal were also polite and professional.
I was still curious if this security deposit policy was company wide for AAA Gas, or if it was just native to the Henderson office. So, I called the Warrenton office and pretended to be a first time caller new to their area. I told her there was a AAA tank already on the property and asked if I could stop by their office and buy 100 gallon cash in advance and have it delivered. Her answer was absolutely YES! I asked her if there would be any security deposit and she said NO! Then I revealed who I was, because I had spoken to her a few days prior to find out the name of the company's owner. I told her my story about the Henderson office wanting a $550.00 deposit and she replied with "Are you sure they understood that you were paying in advance?". I confirmed that there was no misunderstanding, and her reply was "That doesn't make sense.". I said "No kidding.", and thanked her for her time.
Energy United will be getting my business from now on. In the spring I'm converting my two fireplaces to gas, installing a freestanding gas fireplace in my bedroom, and purchasing a Rinnai tankless gas hot water heater. I'll be sure to send Thompson Betts, owner of AAA Gas & Appliance Company, copies of the receipts.
First let me give you a little background on what led us up to this situation and how we got here. While we lived in Pennsylvania, my friend was looking for a new apartment about five years ago. We were both men in our 40's and share a lot of common interests. His wife passed away some years ago and his three children are all adults living in Florida on their own. We came to the conclusion it would make sense if we could find a nice two bedroom apartment and share expenses.
It so happened that old friends of mine own a row of Victorian town homes that have been fully restored and renovated, and they where looking for new tenants. The house was beautiful and the rent was a bargain at only $550.00 a month. In the years we lived there we only had one rent increase of $25.00; bringing the rent up to $575.00 a month. Our living arrangement was extremely successful. He had a well paying job with a defense contractor, and I have a steady independent income and good credit. We were able to maintain an upper middle class lifestyle with no major outstanding debt.
Looking toward our retirements we had discussed for some time about buying a house in North Carolina. We knew that our local property taxes in PA were about to drastically increase which would mean our rent would also drastically increase. PP&L electric rates increased by 30%, our water bill increased by 50%, and UGI Gas also took a sharp increase. And, since neither of us were originally native to the area we decided it was time to move.
Every year for three years we vacationed in North Carolina and looked at several properties. A beautiful southern state, ranging from the seashore to the mountains, with very friendly people. We knew that this is where we wanted to call home. Finally, during the collapse of the mortgage industry we found the perfect 110 year old, move in ready, country home with about two acres for only $63,900.00!
I can tell you it was no small feat securing a mortgage during the height of the economic meltdown of 2009. We were able to take advantage of the new USDA fixed rate loan at 5%. This meant that our mortgage payments were going to be much less than we formerly paid in rent. Very happily we moved into our new home.
With the economy in shambles and the unemployment rate high it proved to be another daunting task to secure reasonable employment. It took four months to find a job, which ended up depleting our bank accounts, but every mortgage payment was made on time.
In late November the weather was turning colder and our 320 gallon propane tank is just about empty. The sticker on the tank gave the phone number for AAA Gas and Appliance Company in Henderson, NC. I called their office to find out how I would get propane delivered and they said I'd have to come in person to apply for credit and set up an account, since I was new to the area and have never been a customer. I thought this shouldn't be any problem. I just secured a loan from Wells Fargo to buy a house, so I shouldn't have any problem passing the AAA Gas credit screening.
I did the application and the customer service rep Karen said she would run the credit check and call me that evening or no later than noon the next day. She didn't call. Three days later I got a short letter in the mail saying that they would not extend credit to me for some very vague reasons. I think there was a $150.00 medical bill that was probably turned over to collection, but four months without work we had no choice but to hold off on paying that bill. And, I had no firm date to give the hospital when I could pay it.
I called AAA Gas again to discuss the matter, but Karen was absolutely unyielding on extending credit. Her tone and demeanor from this point on was terse verging on rude, almost hostile. So I said, "How about I buy 100 gallons, cash in advance, plus a delivery charge if necessary. That would probably be enough to heat the house for at least the next month." She flatly refused to do a cash sale for the propane. Then, she informed me that they would require a $550.00 deposit before I could purchase the propane by paying cash in advance! A deposit on what? At this point I'm not asking for credit, this is going to be a cash transaction. We went around in circles for at least 15 minutes. Me saying I don't want a credit account now, I'll just pay cash. Her saying that they do cash transactions, but not without a $550.00 security deposit. Me asking why, because there is nothing to secure if I pay, in full, in advance. At this point I gave up on this exchange and told her "I'll call back after I review my options and see what I can arrange." Meaning: I'm going to find another company to do business with.
I called all the other propane distributors in our region and found only two that service my local area. Both told me they would be happy to do "cash on delivery" service, but only the company that owns the can tank fill it. Unless you privately own your tank and then any company can provide service. Now, this $550.00 "security deposit" is looking more like "felony extortion". Even if it's not illegal, it's certainly unethical. Some nights, the temperature is dropping down into the 20's and we've had some very cold rainy days.
Eventually, I do want to buy our own tank, but right now we can't afford the purchase, delivery, and inspection fees plus fuel cost. And, we need heat as soon as possible. So, I needed to speak with someone in upper management at AAA Gas.
Leland Pendergrass is the general manager of AAA Gas & Appliance Company in Henderson, NC. He seemed sympathetic to our situation and agreed that we should be able to work it out. He claimed they didn't know we owned the house. (Strange, I declared that on the credit application. And, their office remembered me from my mortgage closing process; we had to buy the remaining gas in the tank from the former owners. In July, AAA Gas had to send someone to the property to determine the amount in the tank and provide me with the current market rate.) He needed to discuss a solution with someone else and would call us back the next day. He did call back the next day, but nothing had changed. They were still requiring a $550.00 deposit for cash in advance service.
The next step was to speak with the owner of the company, Thompson Betts. Again, Thompson was sympathetic and agreed that during these tough economic times their company needs to review and adjust their policies accordingly. I was thinking to myself, "Well do it. Your the owner and this isn't a large national company. You have what? Maybe four storefronts?". Of course, he needed to consult with someone else and he would call us back the next day.
Thompson didn't call the next day, his lieutenant Hal did. Nothing had changed. He did reveal some of their reasons why. The house we now own and live in as our primary residents was used as a rental for the last 11 years. The tenants changed frequently and were mostly deadbeats; they defaulted on their bills. So now we are being treated with prejudice because of the irresponsibility of people we don't even know!
I was absolutely at the end of the rope with AAA Gas & Appliance Company. We told Hal to send someone to come get their tank, we will never, ever, do business with them. The next day he called back and offered to allow us to buy 50 gallons in cash but after that we would still be required a $550.00 deposit. Our answer was "NO! Now, come get your tank or we are going to sue you for a daily storage fee!" Maybe that was an over reaction, but it would have been worth the civil suit filing fee just to drag them into court.
The next day a AAA Gas delivery truck showed up at the house. The driver was very polite, professional, and completely unaware of our problem with his company. I'm glad we were home to stop him from delivering. It did bring some questions to my mind, "Were they intending to fill the tank and obligate us for the bill after we expressly informed them that we didn't want their service?" and "Was their billing department then going to tack on an additional $550.00 deposit?". We wrote "Pull Tank Now!" on the delivery order and sent the driver on his way.
They came in the afternoon of the next day and collected the now empty tank. They had actually went to the wrong house that morning and pulled the wrong tank! That gave us a good laugh. The men who came to do the removal were also polite and professional.
I was still curious if this security deposit policy was company wide for AAA Gas, or if it was just native to the Henderson office. So, I called the Warrenton office and pretended to be a first time caller new to their area. I told her there was a AAA tank already on the property and asked if I could stop by their office and buy 100 gallon cash in advance and have it delivered. Her answer was absolutely YES! I asked her if there would be any security deposit and she said NO! Then I revealed who I was, because I had spoken to her a few days prior to find out the name of the company's owner. I told her my story about the Henderson office wanting a $550.00 deposit and she replied with "Are you sure they understood that you were paying in advance?". I confirmed that there was no misunderstanding, and her reply was "That doesn't make sense.". I said "No kidding.", and thanked her for her time.
Energy United will be getting my business from now on. In the spring I'm converting my two fireplaces to gas, installing a freestanding gas fireplace in my bedroom, and purchasing a Rinnai tankless gas hot water heater. I'll be sure to send Thompson Betts, owner of AAA Gas & Appliance Company, copies of the receipts.
