The New York state attorney general announced Monday night a settlement of more than $1 million with an energy company that committed fraud against customers.
More than 25,000 current and former New York customers of HIKO Energy, LLC are part of the settlement. An investigation by the Attorney General’s Consumer Protection Bureau found that the energy service company promised lower rates to customers and then charged higher rates anyway, enrolled new customers without their knowledge and made it difficult for customers to cancel their enrollment. The lawsuit applies to customers who purchased HIKO energy products between June 1, 2011 and Oct. 1, 2014.
The settlement required HIKO to pay $1.25 million to the attorney general’s office to be used in a restitution program. A claims process for customers affected will be handled by the Better Business Bureau of Metropolitan New York. The settlement also requires HIKO to take measures to prevent deceptive practices in the future.