PECO Energy demanding a deposit! - Credit Repair Forum from Creditnet
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  1. #1
    EC
    EC is offline Member
    Join Date
    Apr 2003
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    62

    PECO Energy demanding a deposit!

    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
    -EC

    ===============
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  3. #2
    BrettS is offline Senior Member
    Join Date
    May 2003
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    234

    Re: PECO Energy demanding a deposit!

    Originally posted by EC
    they have no reason to assume a history of delinquency, except my experience with them.
    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

  4. #3
    GEORGE is offline Senior Member
    Join Date
    Mar 2000
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    20,468

    Re: PECO Energy demanding a deposit!

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

  5. #4
    GEORGE is offline Senior Member
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    Mar 2000
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    20,468

    Re: PECO Energy demanding a deposit!

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

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

    ALL COMBINED...

  6. #5
    SoParkDiva is offline Senior Member
    Join Date
    Mar 2003
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    796

    Re: PECO Energy demanding a deposit!

    Originally posted by EC
    They never ran a credit report on me, so they have no reason to assume a history of delinquency, except my experience with them.
    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?
    "The large print giveth, and the small print taketh away." - Tom Waits

    All I have in this world is my name and my FICO scores

    EQ - 732
    TU - 722
    EX - 658 (718)

  7. #6
    jlynn is offline Senior Member
    Join Date
    Sep 2002
    Location
    Texas
    Posts
    6,201

    Re: PECO Energy demanding a deposit!

    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?

  8. #7
    lbrown59 is offline Senior Member
    Join Date
    Feb 2001
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    17,876

    Re: Re: PECO Energy demanding a deposit!

    Originally posted by SoParkDiva
    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?
    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
    """"```--~~~~~~~~~--```'""'''

  9. #8
    lbrown59 is offline Senior Member
    Join Date
    Feb 2001
    Posts
    17,876

    Re: PECO Energy demanding a deposit!

    I would file a complaint with The P U C O about this!
    Originally posted by EC
    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

  10. #9
    lbrown59 is offline Senior Member
    Join Date
    Feb 2001
    Posts
    17,876

    Re: Re: PECO Energy demanding a deposit!

    Originally posted by BrettS


    1*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
    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
    """"```--~~~~~~~~~--```'""'''

  11. #10
    SoParkDiva is offline Senior Member
    Join Date
    Mar 2003
    Posts
    796

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

    Originally posted by lbrown59
    ...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
    """"```--~~~~~~~~~--```'""''' [/B]
    Not true. Read again:

    Originally posted by EC
    First time home-buyer! :-) Anyway, "Peco The account they are referring to is a valid old account; it was sold to NCO.
    "The large print giveth, and the small print taketh away." - Tom Waits

    All I have in this world is my name and my FICO scores

    EQ - 732
    TU - 722
    EX - 658 (718)

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