PECO Energy demanding a deposit!

Discussion in 'Credit Talk' started by EC, Sep 8, 2003.

  1. EC

    EC Well-Known Member

    First time home-buyer! :) Anyway, "Peco Energy" (a utility company that services my area and I think a large portion of eastern US) is my current electricity provider. I established new service with them, (which has nothing to do with any of my former experiences with them.)
    Everything was fine, until I received a letter stating the following:

    "A recent review of your account indicates that you will be required to pay a deposit in order to maintain your electric service. PECO Energy is allowed to ask for a deposit or other guarantee if you have not established a credit history with PECO Energy or are found to have an unsatisfactory credit history. Our credit department has determined that you will be required to pay a deposit for the following reason: YOU HAVE AN UNCOLLECTED ACCOUNT WITH PECO ENERGY."

    The account they are referring to is a valid old account; it was sold to NCO. In October 2001, I PAID THE ACCOUNT IN FULL, $1,799. Note that the account NEVER went to any of the 3 major reporting bureaus. I paid in full with NCO, and it should have been relayed back to PECO; because NCO paid PECO, so they should have obviously known the account was PAID (not settled, but PAID IN FULL.)

    Well, I call up PECO, they ask me to contact NCO to send them proof, then I call NCO, they say they will send proof to PECO again but that they already did. So, I call back PECO... and now they say "it doesn't matter if the account was paid in full -- we need a deposit because of your history of delinquency."

    !!!!!!

    They never ran a credit report on me, so they have no reason to assume a history of delinquency, except my experience with them.

    I asked them for a copy of their policy on deposits. They said the letter they sent IS the policy. Obviously, I'm going to need to march down there and settle this with a manager (none were avail to speak on the phone.) So, I will travel the 30 miles to the office and sit there until I am satisfied with their answers.

    Here's where I need your help: what leverage do I have? (my credit has since improved, and I now own a home, and I COULD pay 2 months' worth of deposit, but why?) Also, is what they are doing legal? They kind of monopolize the electric industry around here.

    I feel once again like my credit problems of the past simply will not let go... ever! It's like financial jail forever!

    Thanks in advance....
    -EC
     
  2. BrettS

    BrettS Well-Known Member

    That *is* a history of delinquency and I believe they're within their rights to ask for a deposit. If you really want to try to get out of it, then I would strongly suggest going with the 'nice guy' approach. Tell them that you know you had some problems in the past, but you have cleaned up your act. Point out that they have been paid in full and that your credit report also demonstrates your current credit worthyness (is that a word?). You might get lucky and they'll let you go without the deposit. If not, though, as far as I know, usually the deposit with a utility company is about equal to one month's service and usually they'll let you have it back in a year if you have a good payment history. So even if you can't avoid it, it should't be too much of a burden.

    Like I said, though, I believe they are well within their rights here, so if you go in and start yelling and demand to see the manager most likely all that will happen is that you'll get some people annoyed with you and they'll be all the more likely to require that deposit.

    Good luck,
    Brett
     
  3. GEORGE

    GEORGE Well-Known Member

    Ask if they will accept a ONE TIME payment of like $500 against FUTURE CHARGES IN LEW OF A DEPOSIT
     
  4. GEORGE

    GEORGE Well-Known Member

    How can you have ever owed $1,799???

    I don't spend that much in one year on...
    ELECTRIC
    GAS
    SEWER
    WATER

    ALL COMBINED...
     
  5. SoParkDiva

    SoParkDiva Well-Known Member

    If you loaned $1500 to a friend and that friend didn't pay you back, would you be as willing to loan money to that friend again?
     
  6. jlynn

    jlynn Well-Known Member

    Since you did pay them back - try an in person goodwill letter.

    Be ready to explain - why it went to collections. Did you get the final bill? Had you lost your job, etc. How many years did you have service with them last time? Were you late alot, or was this a one time deal?

    There was a post the other day about someone having to explain some lates to a mortgage underwriter. It was an excellent letter. Maybe you can modify off of that?
     
  7. lbrown59

    lbrown59 Well-Known Member

    Re: Re: PECO Energy demanding a deposit!

    1*If you loaned $1500 to a friend and that friend didn't pay you back, would you be as willing to loan money to that friend again?

    SoParkDiva
    *************************
    1*But he did pay them back.
    See it says so rite here!. I paid in full with NCO. as per EC

    THE END ** *** ** LB 59
    """"```--~~~~~~~~~--```'""''
    PS:
    PECO Energy Is demanding a deposit because they are claiming the O.Poster still owes them the $ 1799.oo which isn't true;therefore the deposit demand isn't justifiable.
    Also this isn't new service, but the transfer of existing service from one location to another! Again no deposit is required or justifiable in the matter of transfer of service.

    THE END ** *** ** LB 59
    """"```--~~~~~~~~~--```'""'''
     
  8. lbrown59

    lbrown59 Well-Known Member

    I would file a complaint with The P U C O about this!
     
  9. lbrown59

    lbrown59 Well-Known Member

    Re: Re: PECO Energy demanding a deposit!

    1*Well I say they are not for the following reasons.

    PECO Energy Is demanding a deposit because they are claiming the O.Poster still owes them the $ 1799.oo which isn't true;therefore the deposit demand isn't justifiable.
    Also this isn't new service, but the transfer of existing service from one location to another!
    Again no deposit is required or justifiable in the matter of transfer of service.

    THE END ** *** ** LB 59
    """"```--~~~~~~~~~--```'""'''
     
  10. SoParkDiva

    SoParkDiva Well-Known Member

    Re: Re: Re: PECO Energy demanding a deposit!

    Not true. Read again:

     
  11. BrettS

    BrettS Well-Known Member

    Re: Re: Re: PECO Energy demanding a deposit!

    I don't think this is a transfer. The original poster said

    Also, even if he did pay them eventually, clearly there was a problem as it went to collections. Paid or not he still doesn't have a good history with them.

    Brett
     
  12. jlynn

    jlynn Well-Known Member

    Guys LOL, it could be interpreted he has current service (maybe at old residence not ready to move out of), and is getting additional service. Happens all the time when you want to keep lights on longer than a transfer will allow dual service.

    Hopefully, before everyone comes to blows, EC will come back and confirm.
     
  13. EC

    EC Well-Known Member

    Folks, I really appreciate all the responses that my original post has received!

    To answer the "new service" question, here's the situation: PECO was still active for the former homeowner, even after they moved out. Prior to my moving in, I called ahead of time to verify service would be available (and I gave them MY name.) They explained to me that there would be no interruption.

    So, I guess it's "new service", but PECO never had to deactivate/activate since the house was already being serviced.

    GEORGE, at this time, I cannot explain how the charges escalated to $1800. (I will need to do some homework on the account history.) This was long before I learned about this website, and I was in a whole bind of financial troubles (refer to any of my other posts to see what I got into and then out of), so I finally got a grip on my bad habits, and was just trying to do what a lot of folks who are "trying to do the right thing" do: pay in full, all at once. $1800 lump sum payment to "make it all good". Since it never made my credit reports, I guess I was pretty lucky. But again, I don't think I actually owed that much in actual charges -- it was likely a combination of that and penalties.

    BrettS, you have a point that the goodwill may be the best approach. I just hate to think that they won't let me start from scratch -- this is a new account on my first home; not a new account when I was renting and a financial wreck. I'm 4 years removed from that wreck, and I am married with a kid -- much different than 4 years ago when I was single. I wish PECO -- a LARGE company -- would just be humane and understand.

    GEORGE, I like your idea of proposing a ONE TIME credit that gets applied to my bill for two months. This way, PECO can be guaranteed they'll get paid for at least the first couple of months, all while I establish a monthly utility usage average for them to get comfortable with. I don't mind that idea as much as I mind them holding onto $500 bucks with a mere interest rate of 1.69% for an entire year. (Any one of us could do much better than 1.69%!)

    lbrown59, you're right, as always. Their letter specificially stated only ONE reason why they wanted a deposit; and that was because I "have" (present tense) an outstanding uncollected debt, which is a false statement that I can prove. So, I'm mainly debating their back-peddling on exactly why they need a deposit.

    Based on the above, what's my next step? I have less than 60 days. Yesterday, I filed a complaint with the Better Business Bureau, which asks for 30 days to communicate with the other party. I've never worked with BBB before; do I need to worry about PECO being one of their affiliates, and therefore not getting anywhere that way?

    Also, I'm ready to drive right on down to their main office if that's what it'll take.

    Thanks again for all of your input!
     
  14. SoParkDiva

    SoParkDiva Well-Known Member

    Re: Re: PECO Energy demanding a deposit!

    I can see you don't get it. I'm on your side because I hate debt collectors. Buuuut even though you are 4 years removed from the paid debt - you were still delinquent in paying the debt. That information is still in their system and they are using it against you.

    You're fighting a losing battle. This isn't some credit card card company denying you a card - this is the electric company. I would advise you to submit the deposit before your computer screen goes dark in the middle of typing a post.




    I have to keep referring back to your own words because this is the crux of your argument. It doesn't matter if they never ran your credit reports. Your history with them is all they care about.
     
  15. EC

    EC Well-Known Member

    I'm glad you're on my side. But what part do I not get? If their issue was delinquency, then why did they water down their argument by declaring the sole reason I mentioned above? By their declaration, they've identified only one reason, which happens to be a inaccurate reason, which therefore lessens the merit to their claim.

    If PECO had sent a different letter stating a more accurate reason for a deposit, then I could understand. But, in a world where written correspondence holds considerable weight in arguments, they seem to have made a mistake here by listing a single reason that happens to be false. Because I now hold the document of their first and only written communication to me that lists a disputable statement on which PECO bases their entire justification for a deposit.
     
  16. bugman

    bugman Well-Known Member

  17. EC

    EC Well-Known Member

    Re: Re: Re: PECO Energy demanding a deposit!

    But that's my thing. This is electricity -- an industry that has a monopoly on our selections to choose from. Just as you said, I have no choice but to pay them, because they are the big bad boss, and it's not like I have an alternative to turn to.

    That's why I'm hoping the BBB can help out. I'm not requesting cable television, I'm dealing with a standard utility here!

    If I may kindly retort, maybe what you don't understand is that I'm readily able to pay the deposit -- but I simply will not place any deposit, on the principle alone. They've really pissed me off :)

    If BBB doesn't come through, then I'm going goodwill. And if goodwill doesn't come through, then I'm going postal. LOL! For real though, then I'll march into their headquarters and I won't leave until I'm satisfied.
     
  18. EC

    EC Well-Known Member

    Re: Re: Re: PECO Energy demanding a deposit!

    Thanks, bugman. Perhaps this is my long-term resolution. I have gone through too much to rehabilitate my credit, to suddenly lay down for a utility company that I already paid in full. $5 deposit or $500.

    Now I only hope another company services my area....

    Know what's important to you, weigh the consequences of each action, then stand up for what you believe in, and don't back down.
     
  19. SoParkDiva

    SoParkDiva Well-Known Member

    Re: Re: Re: Re: PECO Energy demanding a deposit!

    I understand you are pissed off. But you can postulate all you want. The bottom line is when that 59th day rolls around I hope you have either paid that deposit or switched to a more understanding utility provider.

    If not, you will find yourself in the dark. The utility is not violating your rights. They are not denying you credit they are denying you service if you don't pay a deposit.
     
  20. jlynn

    jlynn Well-Known Member

    EC - stick to your guns, I would go down there now and see what you can work out. I went thru the same thing a long time ago with AT&T. I had inadvertently left a final bill unpaid for awhile but eventually found it (or it found me!) and I paid it.

    Couple of weeks after moving back here to TX, I couldn't call out long distance. Called them - they wanted a $400 deposit and had shut me off at $200 until I paid the deposit. DH calls MX 3-4 times a day--our phone bill is HUGE.

    Anyway, after I nicely reminded them that I had been a customer for x years, it was in err that I did not pay the final bill, but once I became aware of it I paid it immediately, and that I shouldn't have to pay the deposit (of course there are other ld companies)...they saw my way.

    Stick to your guns!
     

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