Lawsuit Seeking Class Action Status Filed Against Retail Supplier Over Budget Billing Allegations
A lawsuit seeking class action status has been filed in federal court against Ambit Energy Holdings, LLC alleging that the company's budget billing practices violate various provisions of the New Jersey Consumer Fraud Act
The suit alleges that, "Ambit’s website states that the energy company calculates the average monthly amount owed by a budget billing customer and then bills the customer a set monthly rate based on the average rate."
The suit alleges, "However, the website is misleading and fails to disclose that budget billing customers whose energy costs are higher than what they were billed for will carry a balance and will have to pay hundreds or thousands of dollars in so-called 'settlement' charges once they leave Ambit.
The suit alleges, "Ambit misrepresents the rate it is using for its budget billing customers by disclosing a 'budget bill rate' on their monthly bills, while often charging them a different 'actual rate' behind the scenes. In this way, Ambit misrepresents the electricity and gas rates it is assessing its budget billing customers."
An Ambit Energy representative issued the following statement: "Ambit disputes the allegations in the complaint and intends to vigorously defend the case. Last year, a Federal Court in New Jersey dismissed a class action complaint against Ambit and found that Ambit had complied with its customer agreements. Ambit intends to seek a similar dismissal of this new action."