LibertyPower energy scam
June 5, 2012 9:55 PM   Subscribe

NYC: Some guy appearing to be from Con Ed came to my apartment, and got my girlfriend to sign up for something called Liberty Power. Research shows it to be a scam. What now?

Forgive me if this is too verbose, but since there might be avenues of scams we're not aware of....

Two people, man and woman, came to the apartment door. They said they were here because they didn't get a response for something from our last electricity bill—we have ConEd. These people were not from ConEd but they made it seem like they were.

The lovely girlfriend asked what it was they were referring to, they asked to see a bill, she got one. They said they were trying to keep the prices down for the neighborhood, (there is something about a Level Payment Plan on the bill) referred to the "previous usage" chart on the ConEd bill and said they were offering to keep it level.

She filled out a form that said she would like the fixed rate. They took her name, the address, her phone number, email, and my ConEd account number. She signed at the bottom, they didn't give her a copy (although they didn't mention that they wouldn't give her a copy until after).

Her name is NOT associated with the ConEd bill—but the scammers had access to the bill, with my name on it, and wrote down the account number. She signed up for something, but we have no way of knowing what it was.

So what do we do? I came home to one sheet of paper of documentation that has the following that seems pertinent:

• The company's name is LibertyPower. They're an Energy Services Company (ESCO)
• We're entitled to rescind an agreement with anESCO within three days of receiving the agreement.
• We can report any complaints to the Department of Public Service...but that might not be until after they have not followed going through the real channels.
• A PIN that we can reference when we get their documentation.

So, what do we do. It's late and we're frustrated. I'm calling ConEd as soon as they open at 1am(?) to say I didn't authorize any movement on the account...but how on the hook is the girlfriend?
posted by Brainy to Grab Bag (12 answers total) 4 users marked this as a favorite
 
I'm not sure it's a scam. Here in IL, and you might have a similar setup in NY, we are allowed to choose who supplies our electricity. We can go with the power company (in our case, ComEd) or another party. Those other parties may offer rates that are better (or similar, or worse) than ConEd. According to this list, Liberty is a legit supplier. Sounds like your girlfriend simply signed up to have the power supplied by Liberty and you will be billed at their rate (via your usual bill from ConEd) from here on out. Call them in the morning and cancel. You can call ConEd, but I'm not sure they'll be able to do anything for you.
posted by puritycontrol at 10:18 PM on June 5, 2012


Response by poster: I just called ConEd, they were familiar with this and were able to put a block on our account so we can't be switched over. They had similar things to say: that it was legitimate, even if they practiced shady and sketchy ways of getting customers. Everything should be okay.
posted by Brainy at 10:29 PM on June 5, 2012 [1 favorite]


For what it's worth, puritycontrol is right. You can choose which company supplies your electricity and gas in NYS. The program has a hokey name like "Power of Choice" or something similar, if my memory serves me correctly. I went to college upstate and I remember that we chose hydroelectric only because it's, like, the most awesome kind of power and stuff.

You can use this site from nys.gov to find out if Liberty is a legitimate source, but from my cursory perusal, I think they are. I checked out the website of the main utilities supplier for the upstate city where I lived, and Liberty is listed there, as well.
posted by easy, lucky, free at 10:30 PM on June 5, 2012


Yeah, those guys routinely get into my building and then knock on everybody's door and pretend that they're there because you didn't do something you were supposed to. The block should work - from now on, do what I do and slam the door in their faces.
posted by Ragged Richard at 10:41 PM on June 5, 2012


This is a familiar tale to people in Britain or, it seems, anywhere else where utilities are deregulated: the companies are legit, but the sales tactics are deeply sketchy, because the sales people are on commission or working with stupid quotas from management. Report them.
posted by holgate at 11:34 PM on June 5, 2012


Something else you could do, if you have some way of communicating with the other people who live in your apartment block, is to spread the word that these people were lying and explain how to cancel. Others may have been fooled like your girlfriend and it would be nice if their underhand tactics netted them nothing.
posted by Busy Old Fool at 12:55 AM on June 6, 2012 [1 favorite]


This happens in Toronto too.

This FAQ explains it, including how to cancel here, which you might want to check to see if you need to do there too, beyond blocking it: If you're a residential customer and you sign a contract, you have a 10-day "cooling off" period in which you can change your mind and cancel, in writing, without penalty. To do this, you must send a letter 'to the retailer' by registered mail, fax or by personally delivering it to the retailer to give notice you want to cancel.

...and why they want to look at your bill: Retailers may ask for a copy of your natural gas or electricity bill to verify your address information and utility account number. By reviewing your bill, retailers can also verify that you have not signed up with another provider. Don't show your bill until you have all the information that you need, and have decided to sign up with the retailer.)
posted by peagood at 4:36 AM on June 6, 2012


Yup, I would make a complaint to the Public Service Commission/Public Utilities Commission. The practice is incredibly deceptive and not cool. I worked for the phone company and I had people come to my door one day claiming to be employees. They flashed a badge and started in on some pitch. I got MY badge from my purse and flashed it, and they beat a hasty retreat.

The method used is social engineering, and your GF has learned a lesson in being a bit more circumspect.
posted by Ruthless Bunny at 5:39 AM on June 6, 2012 [4 favorites]


Hey, these jerks came to my place too! One of my neighbors gave them a serious talking-to. Next time call the cops.
posted by zvs at 7:27 AM on June 6, 2012


My test for whether these places are really legit is to check their website for price history. The bad ones will give you one month of a rate that is better than the utility (Con-Ed) and then jack it up because "energy prices went up" or some bullshit like that. It's a legal scam. But there really are legit ones, which either save you money, or will charge you the same for 100% renewable power.
posted by smackfu at 8:09 AM on June 6, 2012


We have this here too--Energy Star is the name of the company which came to my door and asked to see a bill.
posted by Riverine at 9:25 AM on June 6, 2012


If you fill out the cancellation form within the three day window, you should be completely off the hook. That requirement comes from the FTC (info). I'd guess that they are going to cut and run when they realize you're hip to the scam, but if they give you any grief about canceling definitely add the FTC to you list of places to raise a stink.
posted by dendrochronologizer at 1:07 PM on June 6, 2012


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