What do you think of utility companies charging a security deposit...

ashleyaugust7 · September 2011

... for consistent late payments in a year? That was a story on the local news. People are P*SSED.

I don't really understand why it's necessary when it is a utility that can just be turned off for late (or non) payment.

hollyg1920 · September 2011

I think they do it because a few people will not pay, get cut off and not pay the bill and let it go into collections and still not pay and then they will get the utility cut back on in someone else's name (at least that is what i saw back in the day)

i think it stinks for people who are struggling....if you can barely pay your $80 light bill where are you going to come up with a 250 or more deposit

MommyofAlissa · September 2011

Because you have people that apartment jump and just put the utilities in someone else's name (a roommate) and the utility company never gets the money. I believe that unless you have a track record w/ the utility company, you have to pay a deposit here, and then after X amount of time w/ no lates, you get it back.

ridesbuttons · September 2011

Sure utilities can turn off their service but that's no solution; the cost of the service and the product has already been consumed.

If your track record is bad enough to warrant it, then the utility is justified, IMO.

Having said that, the people who can least afford to have money tied up in a security deposit are likely the ones being hit up for it.

veloelle · September 2011

Spitballing here. Can utilities deny service for past non-payment? Like you have a history of late payments/getting utilities shut off, can they deny service, or are they legally required to give you service?

I'm torn. Like Rides said, the service was rendered and they weren't paid, so I see the need for a deposit. But yea, $250 is a lot of money for a deposit. I'm guessing they're trying to get people to pay on time by requiring a steep deposit.

I'm thinking there are utility programs for low income? CA has this program: https://www.csd.ca.gov/Programs/Low%20Income%20Home%20Energy%20Assistance%20Program%20%28LIHEAP%29.aspx

Maybe have a flat rate and if you use more energy than allowed w/ the flat rate, you must pay extra or deal w/ no utilities?

J&A2008 · September 2011

No big deal, and they should do what they need to in order to stay in business.

Heat cannot be shut off in the winter months, which leaves many utility companies hurting because they can't shut off the service even though it's not being paid for.

hero · September 2011

We had to pay a $200 deposit. We have good credit and never paid any of our previous utilities late. I think, after the end of the first year, we get it back as $200 credit.

ashleyaugust7 · September 2011

mbenit4:

I just had to call a utility company the other day that I was never with. They based the deposit solely on credit score and since I am a cash person and have basically no credit other than student loan that has never been late on they told me 275. I was shocked and floored. I never had to pay a deposit for anything cable, DirectTV, phone, cell phones, etc. They all run my credit be see that I have nothing in collections and no utilities owed anywhere and I am normally good.

I called this company and asked why so high and they said based solely on score. So, my 16 years with the main electric company in the area means nothing. I have been with Verizon since 2001, cable company since 2003, water company since 1995. I have never left a bill anywhere. This is not something I can run up like a cell phone or cable service (ordering movies). If I don't pay after one month, I am disconnected. This isn't up north so they will cut your butt off in a minute. Oh, and they don't give it back after a year, etc. They keep it until you disconnect service forever. The main utility company in the area charges 150 to everyone and they will bill you. This one wants it upfront. I am going to have to do what I have to do but I am still thinking of how I can address this.

One thing you could do is to file a complaint with the Public Service Commission in your area. It wouldn't be an immediate result, but I would think if they got numerous complaints they could address the issue.

Yodajo · September 2011

hero:
We had to pay a $200 deposit. We have good credit and never paid any of our previous utilities late. I think, after the end of the first year, we get it back as $200 credit.

This happened to us too, three years ago. Our credit rating was extremely high, so it wasn't associated with that. I just thought it was common practice.

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