Consumerist takes us to the BBB of Southeast Florida, which rated MyGallons an F for ommiting material information on its Web site that would help potential customers decide whether to join. The BBB said:

According to the company's website they are offering a gas card program allowing consumers to purchase a chosen number of gallons of gasoline at the current average rate in their area. The company further claims that by investing its members money in a hedge fund the card will be good for future purchases at participating gas stations even if the price of gas should increase. There is an annual membership fee ranging from $29.95 to $39.95, depending on the program you choose.

Florida corporate records show the company is located in Miami, Fl. The company’s website FAQ states that “the card is currently accepted by more 95% of the filling stations in the United States”, however on July 2, 2008 the BBB was informed by MyGallons founder Steve Verona that their negotiations with US Bank’s Voyager program have broken off and they currently do not have a vendor to process transactions with the gas stations listed on their website.

Other reports indicate that similar programs instituted in the Northeast last year for pre-paid natural gas purchases resulted in several companies leaving their customers holding worthless paper. The BBB encourages consumers to carefully read and understand all of the terms and conditions of this offer.

That last paragraph about companies leaving pre-paid natural gas customers high and dry is true. I remember writing about it when it happened about eight years ago. There were clauses in those contracts that gave companies the right to just close up shop without warning. I didn't notice any similar language on MyGallons Web site, but the fact that they don't have a bank lined up for these transactions would give me pause. The founder told Consumerist that the company is in the process of signing up a different banking partner. Until that happens, I'd hold off on signing up with this company and take the BBB's advice, read the contract carefully before you sign up.

Thanks to Kelly and Robert for tipping us off. We love the extra eyes and ears out there helping us all be better consumers.

UPDATED: MyGallons has stopped accepting membership fees, and the BBB removed MyGallon's F rating and replaced it with "NR" or no rating.