Behind the MyGallons.com Controversy
A few skeptical readers wrote to tell me they thought I didn't do enough research on MyGallons.com before writing about it and potentially driving new customers to it. They pointed me to a Los Angeles Times story, the Consumerist, and the Better Business Bureau, which gave the company an F grade.
"I'd check into the viability of this company before offering some free press," scolded Norman Mok of the Armchair Economics blog. Mark from Texas wrote in to say that he signed up for MyGallons.com and then quickly canceled his membership after learning about the Better Business Bureau rating.
Further investigation into this company suggests that this relatively new company is experiencing some growing pains but nothing that—to me, at least—sets off any major alarms. The BBB gave the company an F because MyGallons.com's original partner, which was scheduled to handle the transactions at gas stations, pulled out of the deal. The BBB's Michael Galvin says the company failed to properly disclose that it did not currently have a way to process those transactions. The MyGallons.com website explains the debacle and tries to dispel much of the criticism about the company that has been circulating online.
MyGallons.com is working quickly to install a new partnership that will enable the gas station transactions to take place, says spokesman Greg Salsburg. He couldn't specify when the new contract would be in place but promised it would be soon. We'll keep watching; meanwhile, anyone interested in the "buy now, use later" idea would probably be better off waiting until the kinks have been worked out of the system.
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Reader Comments
The bankruptcy and previous corporations of the owner
The bankruptcy and previous corporations of the owner who wants you to buy
prepaid gas cards at mygallons.com. Escrow accounts are not protected from
bankruptcy proceedings.
www.webofdeception.com
Kimberly - Wake up!
As a reporter, if this is your attempt at research, then it is pathetic at best. There exists SERIOUS concerns about MyGallons. Where do I start?
First let's look at the found Steven Verona - filed for bankruptcy in 2000 and has a history of dubious business ventures. More importantly, NO material history of effective commodity risk management.
Second, the company currently has NO way to provide it's 'members' with a fuel card. He claims he will find a replacement card provider, but that takes months of work. he should shut down the site until he is ready. He is currently still accepting members and collecting $30-$40 in fees.
MyGallons is operating out of a 'virtual' office in Miami. The address of MyGallons on their site is 1221 Brickell Ave, Suite 900. Regus (the office leasing company) uses that address for those looking to have a "virtual" office with the benefits of a 'credible' address. Rent starts at $250/month. The operation may not even physically be at that address. Does that not raise another flag for you?
The US Bank/Voyager logos along with logos of Exxon, Sunoco, BP, Shell, etc have all been removed from his site in recent days. Hmmmm, why would that be you think??? That doesn't help those that signed up when those logos were present on the website launch.
The honorable thing to do is shut down the site until all the pieces are in place. Otherwise it IS misleading regardless of the defense MyGallons will list on their site or in the press. The currently have NO facility to provide it's members with a card - FACT. The list goes on Kimberly. MyGallons has an "F" rating for a reason.
Gas
The bankruptcy and previous corporations of the owner who wants you to buy
prepaid gas cards at mygallons.com. Escrow accounts are not protected from
bankruptcy proceedings as mentioned in article.
http://webofdeception.com/#mygallons
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