Power Company demanding deposit on good standing account

[C_DUBYA]

I filed BK7 and now my DTE energy (My power utility co) has closed my account and reopened a new one.  In doing so they are demanding a deposit now of $200.  Their reason is because I filed BK7.  I explained that they are NOT part of my BK7, my account was 100% up to date and have no past history of owing them debt.

Their answer? Oh well.  

My question is how is this legal?  How can you take something unrelated to you and abruptly demand more money?  "You filed BK7 so I dont trust you anymore.  So give me $200 or you cant have power"  I already contacted my lawyer and they are trying to contact them as they said this should only happen if I included them in the BK7 or had an old debt with them.

I am so frustrated that at times of need companies like this can turn it into more $$ for them.  I am existing customer, with 0 owed, and perfect history.  I feel this is completely unfair.

Rant over.

[DaveInAZ]

I'm not sure if it is legal, but it shouldn't be legal to close an account for no other reason than a court action that has no bearing on them. Having your attorney contact them is best, because the only other recourse is to file a complaint with the state agency that regulates them, usually the Public Utilities Commission, and that could take so long they might turn off your power if you don't comply with their bull (manure). Glad I don't have to deal with these jerks.

In my 2010 BK7 I heard nothing from any utility. The weirdest thing was the County Treasurer sent a letter to my attorney saying they had seen notice of my BK filing and demanded to know how I planned on paying my property taxes (which had always paid on time and no tax currently billed or due), and demanding to be notified if I intended to abandon or sell my property. I wrote the reply:

1- I most certainly am not going to abandon the property.

2- Should I ever sell the property you will be notified by the County Recorder, who as you know records all property sales transactions and notifies the your office.

3- My property taxes have always been paid prior to the due date. How I or any other property owner in the county plans to pay any future property taxes is absolutely none of your business. My BK filing is also none of your business, because as you most certainly know, federal, state & local taxes cannot be included in any bankruptcy filing.

4- I am instructing my attorney to not provide you any information and to disregard your inappropriate and unlawful intrusion into my personal affairs..

I never heard from them again.

In addition to your attorney contacting you might write them a letter demanding - respectfully but firmly - that they reinstate your previous account which was closed without your permission and for no permissible reason allowed under state law. I'm guessing about your state laws, but that might possibly ring alarm bells with them that they decide it best not to push it. And again, I can't believe it is legal for them to do this when the BK filing does not affect them.

[Anonymous]

I'm not sure if it's the same for your area, however when we did BK I wish my attorney had asked me about the utilitiy accounts since I would have included them. From my research in Oregon, if a utility company originally asked you to pay a deposit, you can do BK on them, but then would have to pay them a new deposit to continue services. If the company did NOT require an initial deposit, they could not then require a deposit.

[despritfreya]

I believe the requirement of a deposit is perfectly legal regardless of your payment history.  Carefully review 11 U.S.C. 366(a), (b) and (c ). 

Des.

[Anonymous]

In many areas the electic companies have raised the deposit requirements. My local co just changed the deposits now from $50 owner/occupants, $150 renting to now based on credit to either $100, 300 or -0-.  Another electric company not far from our house went from $25 yes $25 to a flat $300.  Both said it was because people burned them by not paying or giving them bad checks.

[C_DUBYA]

Thanks all.  If I had to do a deposit before, or owed them I would understand.  But in the end they took a good standing account that was never behind and closed it and reopened it as new.  All with no contact by the way.  I just noticed becasue I logged in to pay my bill and was confused why everything had no data.  I called and was told it was from this.  

Im just so frustrated that when things are bad it feels liek youre being hit from all angles.  Even something that I owed nothing to, had perfect history with, and wasnt credit based could demand money from me because of this.  It just boggles my mind, but ohw ell.  I just have to get over it.

[Anonymous]

I am in Michigan and have DTE.  The same thing happened to me when I filed my BK7 in 2015.  I have a friend who filed BK13 and they did it to her too.  Neither one of us included DTE in our BK's either.  I was informed that even though we weren't late on pyaments to them that it was standard practice to create a new account in BK's.

[Anonymous]

They didn't cite their sources but this article may be of help, I was rather infuriated upon reading your post, seems like closing the one account would be deemed as terminating service which according to the article is illegal. Here is the link, http://www.nolo.com/legal-encyclopedia/can-utility-company-shut-off-service-because-my-bankruptcy-fi...