Settlement reached with Paducah-based propane business, customers to receive refunds

Settlement reached with Paducah-based propane business, customers to receive refunds

PADUCAH, KY (KFVS) - Customers of Paducah-based United Propane Gas Inc. may soon get a check in the mail.

Kentucky Attorney General Andy Beshear announced his office reached a $150,000 with the company.

United Propane Gas Inc. was accused of violations of the Kentucky Consumer Protection Act.

More than 500 customers will receive an average refund of $291.

As part of the agreement, United Propane Gas Inc. will strengthen customer protections.

According to Beshear, the company had trouble receiving and delivering propane during the 2013-2014 winter.

The AG's office initially obtained an injunction to force United Propane Gas to let customers who rent their propane tanks to have their tanks filled by other companies. The company reportedly refused to honor its pre-pay contracts for a period of time and consumers, in turn, had to pay 'soaring' market prices.

The agreement was reached after a lawsuit was filed in 2014. Complaints were also filed with the Attorney General's Office and the Better Business Bureau of Kentucky.

"While these allegations are serious, a resolution was reached for the benefit of the customers," Beshear said. "My office will continue to work with United Propane Gas to ensure the agreement is carried out in the best interest of Kentuckians."

Those who have not already received a refund should get a letter from Beshear's office with instructions on how to claim it in the next 45 days.

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