MyGallons Comes Under Scrutiny

A week ago we reported on gas-hedging company MyGallons, which allows drivers to buy fuel at today's prices in the anticipation that it will be more expensive down the road. The company has now come under the scrutiny of the Better Business Bureau.

The BBB told Consumerist.com that a red flag went up when they found out that MyGallons claim that it had partnered with U.S. Bank to fund the venture was not true. In fact, U.S. Bank declined to partner with MyGallons. Furthermore, MyGallons has no contractual agreement with any gas station chains that its credit card will even be accepted, yet it has continued to sign up customers.

MyGallons said it was on the verge of releasing information on its partnership with another bank and that none of this would affect customers, who it said will get their gas as promised.

MyGallons is essentially gambling that gas prices will go down, while its customers are betting that it will only go up. As we warned in our previous post, there is no surefire way to predict gas prices. Any investment comes with risks, but gas-hedging has now begun to look even riskier.

BBB Says MyGallons.com "Omitted Fact" In Advertising, Has No Contract to Process Transactions (The Consumerist)

Comments

[Rob - Credit Card Debt Law]

Sounds like they jumped the gun on their marketing and weren't quite ready for the media attention!

[j w]

Mygallons is at least doing something positive - the real story and focus should be on why us bank and voyager are making inconsistent staements in the press and breached an agreement to allow and give this company a chance - someone needs to start questioning voyager and find out what is the real reason they screwed Mygallons