• Report: #829370
Complaint Review:


  • Submitted: Thu, January 26, 2012
  • Updated: Sun, January 29, 2012

  • Reported By: Amanda — Birdsboro Pennsylvania United States of America
P.O. Box 3687, Ohio United States of America

Met-Ed Metropolitan-Edison Security Deposit based on address, not credit??? P.O. Box 3687, Ohio

*Consumer Comment: Re-read the responses Amanda

*Author of original report: none of that makes it right

*Consumer Comment: Correction to poster Steve

*Consumer Comment: The deposit is based on the expected usage

*Consumer Comment: Are you deliberately misstating your case?

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I called Met-Ed a month ago to set up electric (transfer out of landlord's name and into mine).  They wanted a security deposit of $188 OR a cosigner who had lived in my area with an account in good standing for at least 3-5 years.  Really?  It gets better...They mailed me out a cosigner (they call it a 'guarantor') statement to sign and send back.

This month I called because it dawned on me I have good credit, why am I paying a security deposit??  I called and asked if we should maybe 'run' my fiance even though my credit is fine?  To which a guy on the other end of the phone was probably looking to find his scripted response which was:

"The security deposit has nothing to do with credit.  The security deposit is based on past electricity usage at your address, it is 2 1/2 times the normal bill.  It must be paid in full, but we will refund it if you re-send the guarantor statement"

So I hung up, mulled it over, and called back and talked to another person because I really didn't believe you could hit someone with a security deposit based on the address you're moving to.  WRONG.  She verified the security deposit is based upon the address I have moved to, but assured me it had nothing to do with whether or not the previous tenant was delinquent on their bills or not. 

I asked her HOW they could come up with a security deposit based upon previous electricity usage if I had JUST MOVED IN.  She said it was based on the history of usage at that address, not my personal usage.  WHAT???????  I asked her so if the people who lived here before used $500 worth of electricity per month, I would have to pay them $1250 just to have electric in my name??  (Yup).  Just because I moved there?

Not because of a credit score?  Also, I've never had Met-Ed in my life, we had PP&L where we used to live and we never dealt with security deposits--so it's not like I've ever even HAD a Met-Ed bill before.  I asked her if they ever waive the security deposit, and she said only people with excellent excellent (yes she said it twice) credit--as in 770 or higher AND they have to request it. 

My credit's a 690, not bad, but certainly not 'excellent excellent'.  But apparently the credit is BESIDES the point and now you just have to pay the electric company a security deposit just because of the address you choose to move to.  By the way, I moved to a normal house on a normal street in an incredibly small town.  Is this housing profiling lol?  REALLY????  Is this legal????

This report was posted on Ripoff Report on 01/26/2012 08:54 PM and is a permanent record located here: http://www.ripoffreport.com/reports/met-ed/po-box-3687-ohio-44309/met-ed-metropolitan-edison-security-deposit-based-on-address-not-credit-po-box-3687-829370. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Comment

Re-read the responses Amanda

AUTHOR: Righteous1 - (USA)

Amanda, Flynrider DID answer you correctly. Normal comprehension requires YOU the reader to step outside of yourself and be able to grasp objectively the information relayed.

It makes sense after reading your response that you are unable to "comprehend" or in any way be WILLING to hear out folks who are giving valid response to aide you.

So Contact Your State Authority to see what avenue you can file for complaint.  And by the Looks of where you are located- YOU DO HAVE A CHOICE IN PROVIDERS. Go check out the web and see for yourself. They de-regulated the system over a year ago so you are more then welcome to shop around, that is ...after you accept that as a new customer you may be asked to surrender a deposit.

Hire an attorney if you are that gong h*o on using location as their premise for demanding deposit.

They require one and you simply are taking it personally instead of from a NEW Client stand point.
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#2 Author of original report

none of that makes it right

AUTHOR: Amanda - (United States of America)

Did you happen to read any part of the beginning of my post before you went off on me about credit "being THE point"? The part where, oh I don't know, two separate employees told me the deposit had nothing to do with credit when I suggested running my fiance?

I UNDERSTAND how they're getting the deposit but I've never heard of anything like it. PP&L didn't hit me with that with that crap when I was a new customer with them. If you want to have a security deposit based on whatever you feel like then fine, do it. But the electric company isn't a cell phone company (which by the way at&t didn't require a deposit for my credit) or any company like that where if you get hit with a deposit you have a choice: be it a choice to pay it, shop around, or just walk away entirely. The elecctric company is the sole provider in the area--you want electric you play by their rules. So preach about expected usage all you want, but I'll never think it's right. The very definition of a security deposit is to protect the seller/provider from nonpayment/damages. Should a deposit then not be based upon your previous history paying your electric bill, even if it is with another company? Maybe you grew up in the world of not doing anything wrong, someone assuming you will and imposing a fee on you because of it but I certainly didn't.
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#3 Consumer Comment

Correction to poster Steve

AUTHOR: Righteous1 - (USA)

Actually you are wrong Steve.

each New established account cannot be based on Previous Electric Resident Consumption. New account means just that.  If the previous owner had a small business operation going on within the resident that used way more ...then its a justified consumption....but no they cannot "charge" or "Guestimate" what the new electric account holder will consume BEFORE even creating an established history.

The One poster was very accurate in deciphering and making it reasonable for the complainer to grasp the "FACTUAL" reasons that a utility company can require a Security Deposit.

To the Original Person who wrote this report, COntact The State Board for Utilities, They can still regulate how Utilities are to maintain. They may best be able to answer your questions and provide you with avenues to take if you do think you have a complaint against this business.

I have Met Ed and they are not "consumer" friendly but by golly they sure dont want anyone snooping and questioning them from an accounting stand point....After all its never told how much interest is made off of them Collecting the Security Deposit that may or may not be returned to you ....

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#4 Consumer Comment

The deposit is based on the expected usage

AUTHOR: Steve - (USA)

The utility company needs the deposit to be in line with how much your monthly bill will be. Where you are living ABSOLUTELY has an impact on how much that will be. For example, if there is crappy insulation, or the place is huge, you will generally spend more than if you lived in a tiny apartment with great insulation. The previous occupant's usage is a good way to gauge this. 
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#5 Consumer Comment

Are you deliberately misstating your case?

AUTHOR: Flynrider - (USA)

   You keep restating that the reason you are being charged a deposit is because of your address.   I read your report thoroughly and can't tell if you are deliberately misstating the issue, or cannot comprehend your own post.

  Let me break it down for you.    You are being charged a deposit because you are a new customer and have no history with this utility.   Simple enough?   

  You requested  a waiver of the deposit based on your credit history, but your credit score is not high enough to qualify for a waiver.

   The AMOUNT of the deposit is based on the historic use of electricity at your address. 

" My credit's a 690, not bad, but certainly not 'excellent excellent'.  But apparently the credit is BESIDES the point and now you just have to pay the electric company a security deposit just because of the address you choose to move to. "

 690 is not that great.   Credit is not "BESIDES the point", it is the point.   Yours is not good enough to qualify.   What does that have to do with your address?    Nothing. 
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