Nicor Gas Co. Deceptive Billing Class Action

Nicor Gas Company deceptively charges customers for costly service plans they either don’t need or didn’t order, according to a class action lawsuit filed in Cook County Court.

The Nicor Gas Company class action lawsuit accuses Nicor of engaging in two deceptive practices, involving two separate charges for two separate services imposed on the natural gas bills of its customers.

The first deceptive practice, the class action states, is a “classic case of cramming. Cramming is the practice of tacking on extra fees for services that either don’t exist or were not ordered by a billing company’s customers.” In this case, Nicor is accused of imposing a $19.95 per month charge that appears on customers’ gas bills titled “Nicor Service Charge.”

“This charge was never disclosed nor was any ‘Service’ offered to or accepted by Plaintiff or the Class. The misleading Nicor Service Charge appears monthly on Plaintiff’s and Class’ bills, without any explanation, disclosure or proper and significant notice,” the Nicor class action lawsuit states.

This charge is apparently added as part of an appliance or service plan billed out by Nicor for repair of HVAC systems, stoves, washers, dryers and refrigerators, but customers “would not have agreed to the Nicor services warranty plan had [they] been presented with option to pay for the service… It is merely tacked on and no conclusions can be conceived to the very nature of what the charge even represents.”

The second deceptive Nicor Gas Co. practice relates to the marketing and sale of Nicor’s Gas Line ComfortGuard service plan. At $4.95 per month, ComfortGuard is a service or warranty that allegedly covers the cost of inspection and repair of potential internal gasline leaks for up to $600 per incident. According to the Nicor class action lawsuit, however, the plan’s annual cost is “far more expensive than the average repairs for the services it warrants.” Internal studies conducted by Nicor, but not disclosed to customers, show that the average repair bill for internal gas piping is $47 per occurrence and that internal gas leaks are extremely rare.

Furthermore, the class action says, Nicor “falsely, deceptively and knowingly markets and sells the ComfortGuard plan to those Nicor Gas customers who were and/or are covered by an existing homeowners insurance plan, renters insurance plan, or an insurance plan for commercial dwelling…which cover repairs for internal gas piping within their residences. Plaintiff and the Class therefore have no need for the protection and derive no benefits in return for the additional monthly cost for ComfortGuard.”

The Nicor Gas class action lawsuit is brought on behalf of all Nicor Gas customers who were charged the Nicor Service charge services and/or were billed monthly for ComfortGuard. It is seeking reimbursement to customers of any Nicor Service and ComfortGuard charges they paid, punitive damages, and other relief.

A copy of the Nicor Gas Company Class Action Lawsuit can be read here.