So last June I locked into a price plan with auto delivery with Love Effron fuel. They recorded a verbal agreement with me over the phone. Apparently in the agreement it says if I did not take oil, they had the right to cancel my account and charge me a $500 cancel fee. They also sent me a contract to sign which I never actually did sign and send back to them. Well, based on the fact that I still had a balance from the year before which I was still paying off, they didn't come and deliver as they were scheduled to in November. I get a letter last week saying they cancelled my account and added that fee on top of it. I spoke to them and they aren't willing to work with me. So I have a couple of questions..... 1) Since this isn't really a credit account, will it effect my credit if I don't pay the cancel fee and they send it to collections? 2) Do I have any sort of case here since I never actually signed the contract and sent it back, even though they have my verbal agreement? I don't mind paying them for the rest of my balance, but I am not paying the $500 cancelation fee since I did not request to cancel it. They're just pissed off that since I got the pellet stove, I haven't used any oil. Comments/suggestions?