A New Jersey federal judge dismissed a proposed class action suit against Ambit Energy Holdings. The litigants had claimed that the Dallas-based electricity and natural gas retail energy provider had hiked up customers’ rates after luring them into switching energy providers with promises of lower prices. Judge Michael Shipp found that plaintiff Michael Urbino’s contract with Ambit “expressly allowed the company to change its rates…”.
I guess as long as you tell people you are actually going to raise their rates in the fine print of your contract everything is just fine in New Jersey.
Ambit Energy is a United States Multi-Level Marketing Company and is a residential and commercial retail energy provider. It was founded in 2006 and is based in Dallas, Texas.
Michael Urbino is a resident of West Orange, New Jersey, in Essex County. He has been a customer of Ambit Energy, L.P. since early 2012.
Michael is leading a $5,000,000 class action lawsuit against Ambit Energy. This is not the first class action lawsuit against Ambit Energy. In my opinion, the reasons for this lawsuit are important and you will find them helpful in avoiding the Ambit Energy scam.
Here is why the lawsuit was started
Ambit Energy has taken advantage of the deregulation of the retail electricity market in New Jersey and other states by luring consumers into switching energy suppliers based on offers of “life-changing rewards” such as “free travel, cruises and getaways” and “free energy” for convincing other unsuspecting consumers into enrolling in the Ambit Energy program and by falsely promising to charge competitive rates reflective of prevailing market conditions.
In fact, however, Ambit Energy’s pitch is in reality a false and misleading scheme, in which the rates actually charged to consumers are not competitive and bear little relation to prevailing market conditions. As a consequence of this scheme, consumers in New Jersey and across the nation are essentially being scammed out of millions of dollars in exorbitant charges for electricity.
Ambit Energy consistently and repeatedly represent their rates as both low and competitive, and guarantee customers satisfaction, with statements on their website and in their marketing materials such as the following:
“Our residential Customers enjoy substantial savings on their energy bills, and can take advantage of our attractive Travel Rewards program.”
“[O]ur Free Energy program enables Customers to reduce, or even eliminate, their monthly energy charges by referring friends and associates to use Ambit energy service.”
“A lot of people only know Ambit by our low, competitive rates.”
“While we’re proud to give our Customers the consistent savings they deserve, those who really know Ambit understand low rates are only part of the story.”
“Exceptional Value and Life-Changing Rewards.”
These statements are misleading because consumers receive energy services that are substantially more costly, and consumers eventually learn that the “rewards” are worth far less than the “impressive savings and benefits” trumpeted by Ambit Energy.
In materials provided to its “widespread network of Independent Consultants” – who are effectively salesman paid to push Ambit Energy on unwary customers – Ambit Energy touts its “Great savings!” and “competitive rates” which noting that a consumer can expect “Satisfaction guaranteed.” Ambit Energy also uniformly and consistently markets its electricity sales in print and on the Internet by offering consumers a choice of either “Free Energy” or “Travel Rewards.” Ambit Energy entices consumers by statements that “every year, Ambit Energy gives our Customers millions of dollars through our Free Energy program.” These statements are part of the scheme and are misleading in that the rates paid by consumers are excessive in comparison to those offered by other reputable energy suppliers. No reasonable consumer who knows the truth about Ambit Energy’s exorbitant rates would choose Ambit Energy as an electricity supplier.
Here are some additional complaints that will give you some insight into how this scam works
I signed up for Ambit Gas & Electric through a friend who is one of their consultants. The prices seemed ok at first but then during March 2014, I received a bill charging me 1.02504 per therm for Gas when PSEG was charging .294066 per therm. When inquiring about the difference I was basically told that’s what the price was at the time and there’s nothing they can do. I requested to have the service cancelled and received confirmation that both Gas and Electric would be cancelled w/in 2 billing cycles. In May I followed up about why it was still showing up on my bill and was told the Electric cancellation went through but not the Gas and had to go through the whole process over again even though they admitted it was an error on their end. Whatever $ you save initially with this company you will end up paying back and then some! Lesson learned. Do not sign up with this company, it’s a complete rip off/bait & switch. You’ll end up paying the price for it eventually! Aneta of North Brunswick, NJ on May 21, 2014.
A friend told us how good Ambit was and their prices for gas and electric were lower until recently. The bill we received today, the gas was .7685, 20 cents higher than National Grid, The electric was .16957 more than double NG. I called Ambit, they said we were on a variable rate, we were told no such thing when we signed up. How can any company be so dishonest as to steal from the elderly and disabled. My husband is elderly and disabled, my son is disabled, we live on Social Security, Ambit doesn’t care. We set our heat at 55 nights and 63 days to get thru the winter to keep bills down. I called Ambit today and told them I was going back to National Grid, I can’t stand being robbed by companies that lie to their customers. Georgia of Hudson Falls, NY on May 12, 2014.– Source Michael Urbino Class Action Lawsuit
Ambit Energy Scam Verdict
In my opinion, no reasonable consumer who knows the truth about Ambit Energy’s exorbitant rates would choose Ambit Energy as an electricity supplier. This is not the type of service I would like to represent and sell to my friends and family. Avoid the Ambit Energy scam.
No reasonable consumer should choose Ambit Energy’s exorbitant rates as an electricity supplier. They are nothing but a scam! It's better to avoid, than to regret!
- Exorbitant prices
- No customer support whatsoever
Ray Montie is going to prison for scamming people. Look it up.
Can you explain to me how this company is allowed to have a BBB rating of A+? The BBB is supposed to be the mother of scam busters, how are they letting this happen?
wow, it’s about time this ambit energy is held accountable for their deceptive practices. What’s really spooky is their so-called sales consultants, prancing around saying how much they love saving people money, Ha. Taking advantage of the elderly, and even their own family members!including my elderly mother.these people are a little lower than ditch rats. RUN FROM THIS ambit energy snake oil, pyramid scheme. Illinois
Stay away from Ambit Energy. It appears when looking at their rates, they are cheaper. NOT THE CASE AT ALL. They will charge you “Customer Charge” fees and other unknown fees that increase your bill each months, which in turns makes Ambit more expensive.
In addition, after having Ambit for a year, I moved to another apartment and did NOT retain Ambit. Ambit normally billed me on a monthly statement; however, for my last bill that Ambit should have billed me on their monthly statement was for days June 23-July 15, BUT AMBIT chose to break of their normal monthly billing statement for June 23 thru July 15th into two separate statements for my 22 days of service. So, I got a statement for June 23 thru July 8 for a total of 15 days, and then another statement for July 8 thru July 15. These two billings are outside of Ambit’s normal billing cycle that Ambit has billed me for almost the past year. Normally, the timeframe would have all been on a monthly bill. When Ambit split my service for timeframe June 23 thru July 15th, there were DUPLICATE Oncor charges printed on both of these two statements at the same amount with the same usage dates listed as 6/23 thru 7/15. Hence, by billing me the same Oncor charges for the same timeframe on both of these statements, they were overcharging me. I called and spoke to “Carlos” at Ambit. He admitted to me on the phone that he saw the issue, but he was NOT authorized to correct. He told me he had to reach out to another department to have corrected. I held, and held, and held, and held for over 45 minutes and he finally came back and told me AMBIT COULD NOT correct this and that I should contact Oncur. I told him on the back of my Ambit statement it said for billing disputes to contact Ambit’s customer service and if unable to resolve then I could file a complaint with the Public Utility Commission of Texas. So, I did file a complaint with the Public Utility Commission for the erroneous overcharging fees on my Ambit Statement. Waiting to obtain a response.
In addition, I ALWAYS PAID my bill ONLINE through AMBIT’s website using my checking account each month. I sometimes would pay the bill late, and was subsequently charged a minor late fee for doing so. By the way, Ambit’s website had remembered my checking account info and so all I had to do was pick the payment method (my checking account number) when I paid online. On August 13th, I learned that AMBIT has withdrawn from my checking account the money billed to me on my last statement even though I filed a complaint with the commission and did NOT AUTHORIZE AMBIT TO DO SO.
AMBIT is NOT TO BE TRUSTED!!!!! Stay away, stay away. When you try to resolve something, you will hold and hold, and will still not get anything resolved.
Funny old thing, since I moved, I am now signed up with Green Mountain. I received a bill recently and my usage was slightly higher than my usage for the last 22 days with Ambit. In comparing the Green Mountain bill to Ambit’s bills, by far MY GREEN MOUNTAIN BILL WAS SUBSTANTIALLY LOWER. Green Mountain quoted me charges and breakdowns before I signed up with them, and this is exactly what I was billed……NO EXTRA CHARGES OR FEES like Ambit bills, and fails to disclose to you. So essentially, buyer beware when dealing with Ambit.
they scammed me to .same story a friend signed me up.After a year they jack there rates to double the utilities. They have stolen thousands from me . How can this be legal. Can i get in on the lawsuite
ambit energy is a fraud. they charged my over 500 dollars more then PSE&G WOULD HAVE CHARGED IN A TWO MONTH PERIOD. WHEN I ASKED TO AMBIT TO BE DROPPED, PSE&G SENT ME A NOTICE ON NOV.10,2015 THAT AMBIT COULD NOT BE DROPPED UNTIL FEB.1,2016. WHERE DO YOU GET A TELEPHONE NUMBER FOR AMBIT…NOWHERE……THEY SHOULD BE SUED OVER AND OVER
Ambit sucks they screwed me over and tons of my friends over. Then you have people like Kirk Horan who walks around pretending he’s helping everybody. He’s just a cutthroat he uses people and kicks them to the curb.hes one of their top people consultants
Wow I agree with you a bout Kirk Horan I met him in Texas he’s somebody special. Just who I want to trust to sell me electric. Kirk Horan Ray Monte and all the rest of the Ambit family are all a bunch of Thieves. they will look you in the face with their fake cheesey smiles then when you turn your back you get a real shock and its not from electric.its from your electric bill. Wow such outstanding citizens and such great Americans there should be a holiday on the calendar for them.
I was ripped off by Ambit this summer on my energy rate. They called me “once” to notify me that my energy rate was due to change, to which I tried to call them back at leased 10 times and never got a response, until they had already set my rate @ 15+ cents for the summer. They got their money, but they lost me as a customer!
What do ya do?