Is this a scam?  Or is it a legitimate company that can help you save money on gas?  Let’s look at both sides here.

Here’s an excerpt from a story on The Consumerist’s Web site:

“The BBB says it’s concerned about gasoline-hedging company MyGallons.com and its ability to live up to the advertising claims on its website.  A spokesperson for the BBB tells us that the biggest “red flag” they’ve discovered is that MyGallons claimed (in their press release) to have partnered with US Bank.  However, when the BBB called US Bank to confirm this, they found out that it wasn’t true.  US Bank had discussed the opportunity with MyGallons, but had declined.  According to the BBB, despite the fact that they have no contractual agreements in place to process transactions, MyGallons is still signing up new customers.”

Now, here’s a statement from Steven Verona on the MyGallons.com Web site:

“Dear Members,

There have been a number of rumors and false reports circulating in the media and on the Internet in regard to MyGallons. I would like to set the record straight.

The MyGallons pilot program began in April 2008, and was conducted by Zenacon LLC before the new MyGallons LLC began operations. GoGas Universal notified us that the bank approved our application to provide payment network services through the Voyager Network, a wholly owned subsidiary of US Bank. Not only did MyGallons receive assurances from GoGas that we could use the gas station logos posted on our website, we were REQUIRED by GoGas to use the Voyager logo on the MyGallons Card, and GoGas provided fuel cards with the MyGallons and Voyager names prominently displayed. The successful pilot program was ended just prior to the public launch of the MyGallons program.

Three days before the public launch, MyGallons LLC and GoGas Universal signed a contract in which MyGallons agreed to use GoGas as its sole provider of fuel card services that support the MyGallons program for a period of 2 years with 1 year automatic renewals. MyGallons had every reason to believe the contracts would be honored at the time of our public launch.

Despite these agreements, just one day after the public launch, US Bank informed us that they were not willing to stand behind the contract that their reseller, GoGas Universal, had with MyGallons. We are currently negotiating with several competing payment networks to secure a new payment processor and deliver your MyGallons service with very little delay. Everyone involved in the MyGallons program and I are working feverishly to help protect you from rising gas prices. Thank you for your patience and understanding as we pioneer this exciting and valuable new service.

Sincerely,

Steven Verona”

The company, which debuted in January, just received an “F” rating by the BBB in a recent report.  Verona, the company’s founder, said he was surprised to hear that his company had been given an “F” grade.

“I’m looking forward to straightening this out with the Better Business Bureau,” he said.

The report was posted Wednesday by the Better Business Bureau of Southeast Florida and the Caribbean.

More to come as the story develops.