Pennsylvania Utility Security Deposit?
Question by Lisa: Pennsylvania Utility Security Deposit?
My family and I are moving to Northeast PA for a new job. We just set up our electric and gas service with UGI. They called us back an hour later telling us that we need almost $ 500.00 for a security deposit. Apparently they do a credit check ( that we were not told about either) and our credit wasnt good enough. I have a question that I didnt ask them.
If we put this deposit down , where does it go ? Do we get it back? I dont understand. I have never heard of this before. She also told us that utilities will run around $ 400.00 a month.
How can she tell us that? Everyones usage will differ which means the bills will not be the same. I mean this place has all new windows and a newly put in furnace , with a gas steam furnace.
I am just looking to vent a bit , and maybe get some input from people , thanks!!
Best answer:
Answer by Tigg
All utility companies charge those with NO credit and BAD credit a deposit. If you make prompt payments for 12 months they normally refund the deposit. Be late once and your 12 month counts starts all over. If you move they refund your deposit.
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Comments
It is customary that the utility company will do a credit check on you and assess a deposit (sometimes hefty!) if they feel your credit is not up to what they want. Usually, after a year of paying your bill on time, they will credit this deposit back onto your bill, which in your case may give you about a little over a month of utility paid.
The reason she CAN tell you what it will cost roughly per month, is she has past bills and how much usage was there. They basically average it out. Sure, your bill may not be $400, but I bet it will be close to that.
I have rental units in PA. All of my clients are required to put up a deposit when establishing a service, even if they had service from the same utility at a previous address. Typically you get the deposit back after the first year as long as you make ontime payments. As for how they can tell what you utility bills might be is based on past history of previous tenants or occupants. So if your place has been recently remodeled, the utilitys information would be suspect. But if there has been service at that location and no improvements have been made since the last occupants, then it would be a close estimate.