Is it legal for a utility company to change their rules and require a large security deposit for its services?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it legal for a utility company to change their rules and require a large security deposit for its services?
For as long as I can remember, my utility company has stated on their bills that if your service is turned off, they can ask for a deposit. But only if your service is cut off. I intentionally pay my utility bill according to the turn off notice date. This has worked for 25 years. Now they say things have changed. They want a $520 deposit. I am curious to is this legal? How do I fight this?
Asked on June 27, 2011 under Bankruptcy Law, Maryland
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Read the language of your last utility bill you received and paid to see if the language has changed about a new requirement for a large security deposit, $520.00. If the language has changed in the utility company's bill, it can require a larger security deposit from you.
If you had the money to pay your utility bill on the earlier side, why did you wait to the very end to pay it? Waiting to the last day to pay a bill can have harsh results in the end. A $520.00 required security deposit is a harsh result.
The utility company is a private company. As a private company, it has the right to change its policies and requirements regarding security deposits which it did.
It looks like you are on the hook to pay the $520.00 required security deposit to the utility company.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.