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Is Direct Energy a scam?

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  • #16
    Thank You

    Thank you to AAbonce for the information on this company. My wife was marketed to by a Direct Energy representative, and, being a former door-to-door salesman myself, we were cautious but curious, as there are some great companies that use direct marketing (props to Platinum Supplemental Insurance, which has the finest product money can buy). The process of knocking on doors is not in itself any way a scam, but merely the most direct and effective way to sell any product of any kind.

    I waded through Direct's service agreement, and it is dense. My biggest takeaway, though, was that it didn't seem to offer any real value. It purports (I guess) to stick it to the big energy companies, but only to the tune of a few cents a month. I'm not looking for a few cents off my bill a month. Who cares? I'm still not certain what their real pitch even IS--a) we live in an apartment complex, so it seems we'd have to negotiate any contract with them through our landlord, and b) a more effective way to save money on energy is to turn things off. Fourteen dollars saved in a year?! That's $1.19 a month! Who cares?!

    I do want to say, though, that there is nothing wrong with direct marketing (direct the adjective, not Direct the company name), and that criticizing it as a sales method is silly. Direct sales is the second oldest profession in the world (after prostitution, a type of direct sales) and is still the most effective way to sell any non-retail product. It's still done because it's an exceptionally valuable and successful marketing tool that allows smaller companies to distribute their product and find customers who need it. That's it. No scam, no scheme. The only time direct marketers are pushy is when customers don't know what they're saying no to (to be not interested in something, you first have to know what that thing is). Direct marketing is the foundation of every sale everywhere. Next time you go to buy a car, or a pair of clothes, realize that you are being directly marketed to and solicited. These are not dirty words but necessary means to the end of product service.

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    • #17
      Sorry, I am not obligated to understand what it is I am saying "no" to before I say no. I am perfectly entitled to be not interested.

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      • #18
        Originally posted by Electric 1 View Post
        Ive been a utility employee for 22 yrs. 2 days ago I arrive home to find man sitting at my kitchen table with my 20 yr old daughter, filling out a contract as he talked to someone on the phone. Long story short, this salesman for Direct Energy had bullied his way in my house (wife was not home) and had started setting the contract up. Stated he talked to my wife by phone. When I started to ask questions, he simply picked up his things and walked out...not saying a word. When I told him I would have someone look over this contract first and get back to him, the old "Now or Never" sales pitch came out, saying that I wouldnt get as good of rates if I didnt have him fill out the paperwork..because his rates were cheaper than if I called Direct Energy directly the next day...really??!
        Is your 20 year old daughter the homeowner? If not, how could a contract she signed be binding?

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        • #19
          Direct Energy Gas has been at $.999 a ccf?

          I was wondering if anyone else has been paying $.999 per ccf through Direct Energy Gas? I was unaware of how gas ccf's could be that high after a "contract" expires with a variable rate. I have had outrageous gas bills for 2 years. When I realized the problem and called Direct Energy Gas they said that it was a variable rate per Gas Market share(something like that). I've asked 4 friends and not one of them have ever called and changed anything with their gas supplier. I would think that all of their ccf prices would now be a variable rate due to the fact that none of them have resigned any contracts. Each one of my friends per ccf is under $ .60. Any feedback would help. I called and changed to another supplier a week ago for a lesser rate. I received a letter in the mail that it won't be in effect until January 2015.

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