Energy deregulation was addressed last year in a Palmco Energy lawsuit, which alleged that the company tricked consumers into signing up with them with the false promise of lower utility rates.
This Palmco Energy lawsuit was filed by the Illinois Attorney General, who claimed Palmco promised customers lower utility rates compared to other companies but had ended up being “astronomically higher” after the customer signed up.
Attorney General Lisa Madigan filed the Palmco Energy lawsuit, alleging the company convinced customers who were looking to save money and took advantage of the fact that they were looking for energy alternatives.
Palmco Power LLC is a New York based electric supply reseller, which allegedly advertised their rates as lower than the primary utility companies in Illinois.
Overview of Palmco Energy Lawsuit
According to the attorney general, Palmco allegedly used door-to-door sales associates and telemarketing to advertise their services, and told potential customers they could save money if they switched services and the rates would be lower.
The Palmco Energy lawsuit further alleged that the company promised their long term rates would always be competitive with their former supplier. However, the Palmco Energy lawsuit alleged that customers experienced the opposite soon after they signed up for services.
More specifically, Palmco customers reportedly experienced significantly higher energy bills just after two months and were four times that they had paid from their previous energy company.
“Despite representing that Palmco’ s business exists to lower consumers electric rates, consumers could only save money during the period when they were being baited in by Palmco’s artificially low rates for the first two months, but those savings were wiped away in month 3 by Palmco’ s staggering and undisclosed electric rate increase in the third month and beyond,” the Palmco Energy lawsuit stated.
Some of the allegedly deceptive marketing techniques included using terminology and comments that were designed to confuse customers about what was actually being sold to them, especially in cases with elderly clients.
According to the Palmco Energy lawsuit, company representatives allegedly told some customers they had to make a change or their energy provider had become Palmco with no explanation and that they needed to set up an account.
This Palmco Energy lawsuit was not the first time the company has faced allegations of deceptive marketing and using false low rates to entice customers. Another lawsuit was filed in New Jersey, which was reportedly settled for $5.28 million and was supposed to reform their business practices to help prevent fraud against consumers.
According to the settlement terms, Palmco agreed to revise its website and brochures so that potential customers can better understand the rates they would pay.
According to the Palmco Energy lawsuit filed in Illinois, these business practices violate the Illinois Consumer Fraud and Deceptive Business Practices Act with approximately 8,000 state residents impacted.
Palmco recently issued a statement that the company has hired new retail managers and has increased the monitoring of its sales representatives, along with being compliant for third party audits.
This Palmco Energy Lawsuit is The People of the State of Illinois v. Palmco Power IL LLC, Case No. 2017-CH-00099 in the Circuit Court of Sangamon County.
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3 thoughts onPalmco Energy Lawsuit Alleges False Advertising and Unreasonable Energy Rates
PALMCo is still at it in Illinois.
Same false advertising, same deceptive sales techniques.
My roommate has received eight calls today alone.
She wants to know if she is a member of the class.
I worked with just energy back in 2017 in Houston Texas. I filed a lawsuit back then they never paid me they got from Louisville KY had me to travel from.ky to Houston on Megabus I started from KY head to Atlanta Georgia I got stuck for two in a half days they was paying my way western union me me never got. Me hotel food anything so then I went from ATL to new Orleans Louisiana stuck their for 8 hours till the gave me western union money and conformation code then to Houston finally they provide me an hotel they never paid gave me anything then I ask to leave since they never paid I was told if worked 30 days gave me away back home they toke me n boyfriend to Megabus n just dropped us off so we was stuck in Houston at the Megabus station for 3days I had to talk to an nice old lady who felt our pain n bought me n my boyfriend a another Megabus ticket back to new Orleans Louisiana stuck their for an week till an organization paid out way back to ky
I was a Palmco customer in the state of NJ. I did not receive the notice of the filing a claim in time before the deadline expired. Trying to find out how much I would have gotten from the settlement and find out if I can still somehow get those funds. Post office just delivered the notice after the deadline. If I cannot participate, I would like to know how much I would have received so I can deduct it as a loss on my taxes.