Corbett reaches settlement with oil company

By Keith Loria | Aug 3, 2010

HARRISBURG, Pa. (Legal Newsline) - Pennsylvania Attorney General Tom Corbett announced on Monday that he has reached a settlement with an oil company accused of overcharging customers.

A lawsuit against K & S Kwik Stop, president John Q. Beauge, secretary Brett R. Foust and William A. Showers, an agent for Beauge and Foust in the operation of the company, was filed in May 2009 by Corbett's Bureau of Consumer Protection division.

The settlement requires the Lycoming County oil company to pay partial refunds to consumers who were allegedly charged for more home heating oil than they received.

"Under the terms of this settlement, all consumers who received heating oil from K & S Kwik Stop are eligible for a 15 percent rebate for the total amount of their purchases during the 2008-2009 heating season," Corbett said.

"Eligible consumers who have been identified by the Attorney General's Office will receive official notification letters and claims forms shortly."

Corbett alleges that the company appeared to be charging for more gallons of heating oil than they were delivering. So far, 105 consumers have been identified as not getting the proper amount of oil during the 2008-09 heating season, Corbett says.

The settlement also includes civil penalties and costs of $2,000 for the office of the attorney general as well as civil penalties of $6,000 for the Pennsylvania Department of Agriculture for violations of the Consolidated Weights and Measures Act.

The agreement also called for $10,000 to be set aside for a Consumer Restitution Fund, which will be used to pay the consumer rebates. The defendants must provide additional money if the total claims exceed $10,000.

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