deposit on electric/gas bill

[Sagginit]

i just got my first electric/gas bill and they want a deposit that will cover 3-4 months! i thought this was excessive so i called customer service. the bill is in my roomates name (i took the cable bill in my name) and they tell me its based 100% on her credit. they couldn't discuss lowering it b/c i had to give her social number which i dont have, but they told me i could switch it to my name to potentially get the deposit off. i know i have good credit and they will most likely drop the deposit if it is in my name, but i also dont want all the bills on record in my name. they told me they may negotiate with her and drop it a bit. has anyone done that? and since this is a direct result of her bad credit, should i still have to give her half the deposit? it would be the nice thing to do but i dont really have the money to spare. i get paid bi-weekly and im trying to get myself on a schedule where i save my first pay check for the bills due the first few days of the next month. this is never going to happen if she keeps costing me like this.

 

[Free4Life11]

They pull this same CRAP in my city and I want a law against it. You should not have to pay a large deposit for something like this that is a NECESSITY And when you do miss a bill, do they use your deposit as a credit?? Nope! They told me that after 36 months, I get my deposit back...it's a complete load of BS. And I'm sick of all these companies basing everything off credit. This kind of discrimination needs to be outlawed since it's impossible to know what your credit score is without paying for it -- one big SCAM.

 

[marie1203]

They ask for deposit here too. Our credit was good so we didn't have to give a deposit for the electric, but when we went to turn on the water they asked us for a $100 deposit. I asked if they have checked our credit they said they have and the minimum deposit is $100 . My water bill is $15-20 a month. They keep it for 3 years and after 3 years they apply as a credit to your account. Such a rip off!!!

 

[Sagginit]

i was annoyed too b/c they told me to switch it to my name they needed proof we both lived there so they knew i wasnt trying to get anything over on them, but i cant put it in both of our names, so i would have to officially switch it. she is a few years younger than me and i cant imagine what it would be like if she was on her own and didnt have someone with good credit or negotiating skills to try to fix it. at that the same time i have spent years building credit and i dont want it ruined if she cant pay the bills one month. i hope they will just lower it a bit so we can leave it in her name.

 

[phred52]

Yikes. I've never heard of this. Both of my DD's have moved out in recent years. Neither had to pay a deposit for any utility. They did have to give social security numbers, which freeked them out some, but no deposits were requested. We live in New York, maybe its a cultural thing? IDK

 

[mrsklamc]

I'd switch the utilities to your name and put the cable in her name, since cable isn't a necessity.

 

[funnygarcia]

3-4 months sounds excessive, I've heard of one month or two at the most for opening a new account. As I never had that life experience, I've always wondered how room mates handle shared bills like utilities, phone, etc.
Good thing to know and pass along to my 17 yr old when he is ready to move out.

You can get your credit report once a year for free. You can write the 3 major reporting agencies or there is a web site that I can't recall right now, I'm sure someone will post it soon.

Good luck!

 

[MSSANDRA]

Pretty standard here if you are a first time customer or have poor credit. Here, at least, someone with a good history can sigh for you. Maybe her parents?? I would be concerned about having it all in your name and then her not paying her 1/2 of the bill.

 

[bdcp]

This has been going on forever. We had to pay a deposit in 1982 for electric and water in our first home together. We had rented privately before and our landlord paid the utilities. All you need after an initial deposit with a utility is credit history and a letter from the utility to the next and you won't have to do it again with a new company. My DS both had to do it the first time they set up accounts. Now, no problem.

Utilities need to know they will be paid. It's not personal.

 

[Marionnette]

They pull this same CRAP in my city and I want a law against it. You should not have to pay a large deposit for something like this that is a NECESSITY And when you do miss a bill, do they use your deposit as a credit?? Nope! They told me that after 36 months, I get my deposit back...it's a complete load of BS. And I'm sick of all these companies basing everything off credit. This kind of discrimination needs to be outlawed since it's impossible to know what your credit score is without paying for it -- one big SCAM.

It's not unusual to require a deposit for utilities when the responsible party has no credit or very poor credit. It's just like the security deposit that a landlord requires from a renter. They want to ensure that you pay your bill. A landlord doesn't "credit" you from your security deposit if you miss a month's rent, either. But unlike the landlord, the utility company will return your deposit within a few years if you prove to them that you are not a bad risk. After all, they are selling a consumable and can't repossess it if you don't pay your bill. I prefer that they do this rather than stick the rest of their customers with higher rates to make up for deadbeats who skip out on them.

To the OP, don't pay half the deposit. When it gets refunded, it won't be refunded in your name. The check will go to your roommate. Tell your roommie to call and negotiate the deposit down. If the large deposit is because of having no credit, she may be able to reduce it. If it's because of a bad credit history, then they might not budge. Maybe she can get a parent to act as the responsible party with the bill being sent to your place. However, speaking as a parent, it's not something that I would do. I wouldn't give one of my kids the opportunity to mess up my credit.

 

[Free4Life11]

It's not unusual to require a deposit for utilities when the responsible party has no credit or very poor credit. It's just like the security deposit that a landlord requires from a renter. They want to ensure that you pay your bill. A landlord doesn't "credit" you from your security deposit if you miss a month's rent, either. But unlike the landlord, the utility company will return your deposit within a few years if you prove to them that you are not a bad risk. After all, they are selling a consumable and can't repossess it if you don't pay your bill. I prefer that they do this rather than stick the rest of their customers with higher rates to make up for deadbeats who skip out on them.

To the OP, don't pay half the deposit. When it gets refunded, it won't be refunded in your name. The check will go to your roommate. Tell your roommie to call and negotiate the deposit down. If the large deposit is because of having no credit, she may be able to reduce it. If it's because of a bad credit history, then they might not budge. Maybe she can get a parent to act as the responsible party with the bill being sent to your place. However, speaking as a parent, it's not something that I would do. I wouldn't give one of my kids the opportunity to mess up my credit.

But when I am renting an apartment I can shop around -- some apartments charge a smaller deposit. For example, I chose a place that only had a $250 deposit as opposed to one months rent. And to my knowledge, they charge everyone the same deposit. I never heard of them saying "hey you have a great credit score, you don't need to pay a deposit." I can't shop around because we have only one electric company.

I don't like how their "credit criteria" is secret, they don't publicize how they decide who needs to make a payment. I would not be surprised if they profile...what I don't like is how they waive the deposit for some people because they have "better credit." Treat everyone fairly. I had to pay a $200 electric deposit, despite never having any late payments on my credit report. And then after I kept making on time payments they told me I don't get the deposit back until 3 years have passed. What-ever. After cancelling my services they took a full 35 days to issue a refund check when I needed that money (I was moving). The electric company is the entity I hate the most.

 

[bumbershoot]

We had to put down a deposit in the beginning, then got it back, then I missed a payment by accident and we had to put down another deposit.

I see it as...if you have bad credit (or miss a payment), they don't know that you are trustworthy. They don't know if you will pay your bills. So they need something to hang on to.

No problem to me! I mean, it hurt the wallet, but it made sense to me entirely.


I would put that bill in my name, I would make sure I had enough to cover it every month, and I would think long and hard about having a roommate with credit THAT bad! Hopefully she's on her way up, realizes that there's work to do with her finances.

 

[Sagginit]

shes only 20 and left college a few months ago so she is just switching bills into her name from her parents name, so thus he has no credit b/c this is the first time bills are in her name. i know its not personal, i dont blame them for wanting deposit, but 3 months seems excessive, they told me they just lowered the standard, they used to charge a flat 260 or 520 deposit, at least ours is a bit lower b/c its based on past usage at the unit. she will just have to suck it up, its part of being an adult and she needs to learn i guess.

 

[Vijoge]

they used to charge a flat 260 or 520 deposit, at least ours is a bit lower b/c its based on past usage at the unit.

Is this the gas company or the electric company? How much deposit are they requiring?

 

[msmama]

If she's really young and just starting out, the fact that she doesn't have ANY credit might be the problem.

My half sister (the most super financially responsible person I've ever met) had the same problem. All through college she used her debit card for everything, so when she went to get her first apartment, she couldn't get ANYTHING without her mother being a co-signer.

Hopefully it'll at least build up her credit.

 

[Marionnette]

But when I am renting an apartment I can shop around -- some apartments charge a smaller deposit. For example, I chose a place that only had a $250 deposit as opposed to one months rent. And to my knowledge, they charge everyone the same deposit. I never heard of them saying "hey you have a great credit score, you don't need to pay a deposit." I can't shop around because we have only one electric company.

I don't like how their "credit criteria" is secret, they don't publicize how they decide who needs to make a payment. I would not be surprised if they profile...what I don't like is how they waive the deposit for some people because they have "better credit." Treat everyone fairly. I had to pay a $200 electric deposit, despite never having any late payments on my credit report. And then after I kept making on time payments they told me I don't get the deposit back until 3 years have passed. What-ever. After cancelling my services they took a full 35 days to issue a refund check when I needed that money (I was moving). The electric company is the entity I hate the most.

One could point out that since you can shop around for an apartment that costs less, you could also add "utilities included" to your list of requirements in order to avoid paying the deposit.

I haven't had to pay a deposit on any utilities in my name since I was a graduate student and got my first place. Perhaps they charge a deposit to everyone where you live but not everywhere.

And 35 days after canceling your account is actually pretty good for a refund. They have to complete an entire billing cycle before they can issue your refund. If you quit in the middle of one, that would be a correct amount of time. It could have taken even longer if you closed your account closer to the beginning of a cycle.

If you perceive serious issues with the way that the electric company in your area operates, you need to contact your state PUC. They can investigate any wrongdoings or explain things to your satisfaction.

 

[jedijohn]

This is typical for new customers and for those with poor credit scores. We got our deposit refunded after I year of on time payments, which meant we didn't have to pay our utilities for like 2 entire months. Also, depending on your state laws, they may have to pay you interest (in the form of a small credit on your bill) on your deposit money.

 

[Sagginit]

it gets worse. when i got over the deposit i looked into the breakdown and realized the gas seemed a bit high. i asked my mother and she said it was way high. so i call and they tell me that i have more than a stove on my meter, we either are paying for our own hot water heater or he has the house hot water heater hooked up or even worse, the dryer that we dont use! so now i have to get a copy of the lease to find out what utilities he included in writing and get him to show me the meter and gas lines, or call in an inspection from the electric/gas company to trace the gas lines. what a nightmare! and they told me they can inspect but they need his permission to enter the basement, and while they can give a report of what is on the meter, if he has us paying for things we shouldnt be they cant force him to have the lines changed. no wonder the gas/electric company doesn't trust us, you can't even trust your own landlord to not scam you into paying utilities for him. i am so over renting, im gonna eat rice and beans for the next year to save to buy my own house.

 

[Vijoge]

i have more than a stove on my meter, we either are paying for our own hot water heater or he has the house hot water heater hooked up or even worse, the dryer that we dont use!

The gas company doesn't know, or care, what gas appliances you have-they only know how much gas you are using.

If you're not using the dryer it (not sure why you wouldn't, though) won't matter because you won't be using any gas for it anyway. Just turn off the pilot light and it won't use any gas at all.

I would expect that you would be paying for your hot water, unless your lease says it's included in your rent. Normal utilities are gas, electric, water, phone, and sometimes garbage. Your lease should definitely spell out what utilities you are responsible for.

 

[Sagginit]

my roomate told me we pay electric and cable/internet/phone. water, heat, and everything else was covered by my landlord included in the rent. its a two family unit and the washer/dryer is in their basement that we do not have permission to go into or use. thus why we shouldnt pay for the gas for it. that is also where i was told the hot water heater(s) would be and the lines to the meter. gas has never been discussed, if i want to be strict, i can tell my roomate we agreed to electric when i moved in, pay for half of that and leave her to figure out gas. the fact of the matter is i told her after not getting a bill for almost two months she should call and check up on it and she never did. now we have this big bill and a week to pay or they shut off the electric. my half of just electric will leave her with $300 to pay with the deposit and since rent is due i can almost gurantee she doesn't have the money and is going to expect me to somehow help her out.