Attorney General's News Release

April 20, 2005

Nixon obtains $879,000 order against Cole Camp business that reneged on contracts to rural customers

Warsaw, Mo. — Missouri Attorney General Jay Nixon today announced that his office has obtained a court order against a Cole Camp couple and their farm supply business that entered into contracts with rural customers to deliver propane and fertilizer, and then forced their customers into paying higher rates. Nixon sued Heartland Farm Services and owners Robert and Raelene Bain last December.

The order, signed today by Benton County Circuit Court Judge John W. Sims, requires Heartland Farm Services and the Bains to repay $879,033 in restitution to 28 customers in amounts ranging from $640 to more than $330,000. In addition, neither of the Bains can ever own or operate a business in Missouri again.

"This was a situation where consumers were put in quite a predicament — they had already paid up-front fees for fertilizer and fuel, then when the company refused to fulfill the contract, the customer had no choice but to pay the price demanded," Nixon said. "The Bains may have thought they had their customers over a barrel, but obviously they didn't realize how seriously we take Missouri's consumer protection laws."

Heartland Farm Services charged customers a non-refundable fee of up to $3,500 to set up a "trade and business account," which supposedly entitled the customer to a minimum 10 percent savings over retail prices. Heartland agreed in contracts to supply propane in installment deliveries; the buyer paid a deposit up front, and then was to pay the balance for each installment as it was delivered.

But consumers reported that after one or two deliveries, Heartland refused to deliver any more unless the customer paid in full for all future installments. Even though customers paid the non-refundable fee to get lower propane prices during the winter, Heartland's actions forced them to either pay the entire amount before delivery, or pay higher prices on the open market.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818