Just another way to shaft the poor

[Vadatajs]

Link

In a new rate-setting tactic for electric utilities, the unit of Dallas-based TXU Corp. plans bigger rate increases for customers with low "credit scores," which are numeric rankings that take into account customer histories of paying electricity, phone and cable bills, the Wall Street Journal reported.

SICK.

 

[daveshel]

I wonder about the legality of that - public utility rates are usually regulated by public utility commission type bodies.

 

[Vadatajs]

Originally posted by: daveshel
I wonder about the legality of that - public utility rates are usually regulated by public utility commission type bodies.

It seems Texas is so backwards that that's not the case.

 

[cKGunslinger]

Originally posted by: Vadatajs
Link

In a new rate-setting tactic for electric utilities, the unit of Dallas-based TXU Corp. plans bigger rate increases for customers with low "credit scores," which are numeric rankings that take into account customer histories of paying electricity, phone and cable bills, the Wall Street Journal reported.

SICK.

Bad news for me, as I fit all 3 criteria (Texan, TXU customer, sub-par credit), but I fail to see the "Texas sucks" connection.

 

[dmcowen674]

USA, land of DiscrimiNation.

It;s harder to discriminate against "African Americans" so this is the latest tactic to get away with said discrimination. Of course this captures "White Trash" as well now so it will be viewed as more Politically correct.

Stand UP people to all of the Tyranny!!!

 

[charrison]

Originally posted by: daveshel
I wonder about the legality of that - public utility rates are usually regulated by public utility commission type bodies.

Yes the puc would have to approve it.

 

[LordMagnusKain]

Originally posted by: Vadatajs
Link

In a new rate-setting tactic for electric utilities, the unit of Dallas-based TXU Corp. plans bigger rate increases for customers with low "credit scores," which are numeric rankings that take into account customer histories of paying electricity, phone and cable bills, the Wall Street Journal reported.

SICK.

well, we have an open energy market here in Texas, so what this one company does is it's own business.

this captures "White Trash" as well now

HI!

I do know that my family is poor and we've shaved 2months of electricity out of a couple of the companies thus far. Honestly, poor people don?t like to pay there bills, if they did then they?d have better credit, so I think this is perfectly reasonable.

 

[digitalsm]

Hmm low and behold, whats this? You have the choice to choose who your power company is in Texas? Oh yeah thats right, energy was deregulated and TXU no longer has a strangled hold on the state. I believe you have a choice from ~11 different companies these days, unless you live in an area with its own power co-op.

 

[conjur]

Some more info on it at creditboards.com

http://www.creditboards.com/ph.../viewtopic.php?t=54582

 

[Uhtrinity]

~ HI!

~I do know that my family is poor and we've shaved 2months of electricity out of a couple of the companies ~thus far. Honestly, poor people don?t like to pay there bills, if they did then they?d have better credit, so I ~ think this is perfectly reasonable.

And what does being poor have to do with bad credit and how much you should pay on utilities (or insurance rates)? FYI most states do the exact same thing with house insurance rates. I have bad credit atm and it's not because of late credit card bills or late utility payments, it is because of my wifes medical bills (who is now deceased for the same medical reasons). How many really believe it is just to overcharge someone for the sole reason of life sh*ting in their Cheerios?? This is simply a form of class discrimination!!

They are even going as far to use credit rating as part of the new flight risk system, not sure if it has passsed, if not sure hope it never does. Guess seeing my wife die makes me more likely to be a terrorist
:|

 

[dmcowen674]

Originally posted by: digitalsm
Hmm low and behold, whats this? You have the choice to choose who your power company is in Texas? Oh yeah thats right, energy was deregulated

Fixed for you:

Hmmm and Low and Behold they are all within a couple of bucks of each other in higher costs than when it was "regulated" therefore having NO choice.

 

[sandorski]

Wow. I could see a justification for higher Interest Rates on late Payments, but higher Rates for the Product itself? What's next, McD's 99c Menu for A Raters and $1.29 Menu for Low/No Credit?

I'm sure this is mainly a way to avoid Poor Risk customers, but if one can do it All will eventually do it. Actions like these are what spurs Regulation in the first place, how long will the De-Regulation party last?

 

[Jhhnn]

So, uhh, have the companies offered to shave rates for folks who'll pay by credit card, paying the anticipated charges in advance? Probably not... No carrot, all stick- more profit, less risk...

 

[LordMagnusKain]

And what does being poor have to do with bad credit and how much you should pay on utilities (or insurance rates)?

I told you, being poor we have bad credit, bad credit because we rip off utility companies. Makes sense to charge those that are going to shaft you more.

Hmmm and Low and Behold they are all within a couple of bucks of each other in higher costs than when it was "regulated" therefore having NO choice.

you can BS all you want, but I know for sure that the prices have gone down in terms of cost-per-KWH.

Unless you support green energy, then you pay more, but your doing something good for the environment by supporting more wind-energy.

 

[Uhtrinity]

Originally posted by: LordMagnusKain

And what does being poor have to do with bad credit and how much you should pay on utilities (or insurance rates)?

I told you, being poor we have bad credit, bad credit because we rip off utility companies. Makes sense to charge those that are going to shaft you more.

Sounds like stereo or typecasting to me which is always considered bad. My first experience with this this whole issue was when I purchased house insurance about 2 years ago, we were given a quote, a few days laster that quote went up 70% due to a credit check. I pay my bill once a year in full. How does that make me a risk, especially something like insurance that you have to pay in advance anyway or get cancelled.

I was told by my agent who also happens to be a fmily friend that there was legislation in place to try to overturn this whole mess. Anyone know anything about it?

 

[Todd33]

Well, in CA the Texans still found a way to screw us in 2001. Texas is like a 3rd world state, we should give it back to Mexico, if they'd have it back

 

[KK]

Originally posted by: Uhtrinity

Originally posted by: LordMagnusKain

And what does being poor have to do with bad credit and how much you should pay on utilities (or insurance rates)?

I told you, being poor we have bad credit, bad credit because we rip off utility companies. Makes sense to charge those that are going to shaft you more.

Sounds like stereo or typecasting to me which is always considered bad. My first experience with this this whole issue was when I purchased house insurance about 2 years ago, we were given a quote, a few days laster that quote went up 70% due to a credit check. I pay my bill once a year in full. How does that make me a risk, especially something like insurance that you have to pay in advance anyway or get cancelled.

I was told by my agent who also happens to be a fmily friend that there was legislation in place to try to overturn this whole mess. Anyone know anything about it?

I was going to mention this insurance deal. This seems more unfair than electricity deal. As you said in order to have insurance usually you have to pay the premium first, therefore the insurance co. should not be using credit scores at all. Unless I'm missing something.

This credit check thing with regards of utilities would make more sense compared to insurance. Although I'd would think for in order for that to work, that good credit scores should get better than current prices now. Right now, everyone probably pays a inflated price because of the risky type customer.

 

[LordMagnusKain]

Sounds like stereo or typecasting to me which is always considered bad.

and it's done all the time using someone's credit score fore things that you get on credit, like electricity.

 

[Genesys]

Originally posted by: Vadatajs
Link

In a new rate-setting tactic for electric utilities, the unit of Dallas-based TXU Corp. plans bigger rate increases for customers with low "credit scores," which are numeric rankings that take into account customer histories of paying electricity, phone and cable bills, the Wall Street Journal reported.

SICK.

would you have them charge less for people with poor credit track records?

 

[Ldir]

We are slowly but surely widening the gap between the have's and the have-not's. The rich will not be satisfied until we return to the era of Dickens. Are there no prisons? Are there no work houses? Their greed will ultimately be their doom.

 

[bozack]

Originally posted by: Genesys

would you have them charge less for people with poor credit track records?

The libs would love that...or at least the libs here like Dave and Co...seems like Ldir is there as well...if the customer has a history of paying utilities late then I can see how the companies want to protect themselves, give people incentives to pay ontime.

 

[Uhtrinity]

But as I pointed out they are also doing it with Pay before you use services (ie insurance). As far as must have utilities there should be some kind of consumer protection in place or base it on past history with utilies payments. I myself have never had a problem with paying (keeping up to date) for my utilies, but instead got caught ip in medical debt. Luckily in my state only home owners insurance falls under these new rules.

 

[TheGameIs21]

A couple of points...

Competition is sweet. Deregulation will allow for competition and the competition knows that if they don't bill in this manner, they will get the business.

Poor doesn't = bad credit. Even if you don't make enough to qualify for a Credit Card or other debt that is reported, you can have a "non traditional" credit report created that will give you accurate scores.

Now if we are supposed to feel bad because people that don't make much money go out and buy a big screen TV on Credit at Best Buy and end up not being able to pay for it so they get a bad credit score.... Ain't gonna happen. I remember my folks teaching me about credit cards when I was a pre teen. I learned from an early age the need to have a good credit history. I just can't feel sorry for people with no common sense or people who refused to pay attention in school when they explained credit and savings.

1. Am I for power companies being able to adjust their rates off of Credit Scores, No.
2. Do I think that the power companies have the right to bill how they want to (in a de-regulated society that allows for competition), Yes.
3. Do I think that the Corporation Commission (the entitiy in Oklahoma that regulates) will allow gouging, Absolutely not.

 

[piasabird]

Rules for monopolies still apply. However, this could effect a lot of not so poor people who did not send in their bill on time or received a pay up or we will disconnect notice. I would have thought that this is kind of like double jeopordy. They can already charge late fees for people that pay a bill late or charge high fees to get reconnected or disconnected. So this is like paying twice.

This is the kind of think that needs to be nipped in the bud!

 

[Ldir]

Originally posted by: bozack

Originally posted by: Genesys

would you have them charge less for people with poor credit track records?

The libs would love that...or at least the libs here like Dave and Co...seems like Ldir is there as well...if the customer has a history of paying utilities late then I can see how the companies want to protect themselves, give people incentives to pay ontime.

Do you ever read the stories? The customer does not have a history of paying utilities late. It is class discrimination based on credit scores. I bet they can show a correlation between race and late payments too. Will you excuse them if they raise rates based on race?