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Flogas - Deposit on Account

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  • 23-07-2007 5:42pm
    #1
    Zzippy
    Moderators, Sports Moderators Posts: 14,166 Mod ✭✭✭✭


    Right, I bought a house last year and got a customer account with Flogas. For the last while, they have been writing to me looking for a €390 deposit - lucky me, it will be only €250 if I sign the direct debit madate form.
    My question is how is this allowed? I really dislike the idea of giving someone money I don't owe them so they can have it in their bank account earning interest - good money that I could be using to do something with the house.
    I still haven't signed the direct debit mandate as I really don't want to give them €250, let alone €390, but now they're threatening to cut off the supply.

    Is this kind of thing widespread with other companies? How do we consumers allow this to happen?? :mad:


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    #2
    dahamsta
    Banned (with Prison Access) Posts: 16,659 ✭✭✭✭dahamsta


    What's the deposit for exactly?

    (They're allowed make it a different figure for DD at the moment, but that'll change soon.)

    adam


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    #3
    Zzippy
    Moderators, Sports Moderators Posts: 14,166 Mod ✭✭✭✭Zzippy


    I don't think they specified what it was for - its not like I have to rent equipment from them or anything. Think it was just a deposit they charge to guard against the risk of customers not paying their bill. I remember paying Eircom something similar a few years back and it really bugged me then too - they were supposed to refund it after 6 months of the contract but I didn't get it back til I moved house and ended the contract


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    #4
    cgarvey
    Registered Users Posts: 3,886 ✭✭✭cgarvey


    Are you renting? Most utility companies require a deposit if you're renting, to manage their risk. That does seem high alright, but then you could, in theory, use up a lot of gas between billing cycles. Do you know of another Flogas account holder that would vouch for you (be your guarantor). ESB still do this, though you've to push hard for it, so Flogas might as well?


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    #5
    Saint_Mel
    Registered Users Posts: 2,598 ✭✭✭Saint_Mel


    Recently bought a house and got hit with the same bill.

    I rang up to enquire about it and was told I had to pay the deposit as I had no
    previous account history with them. It's just a precaution so that new account
    holders dont run up a huge bill and do a runner without paying a thing.

    It gets refunded after 6 months or something as far as I can remember.
    (or so they told me!)


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    #6
    Zzippy
    Moderators, Sports Moderators Posts: 14,166 Mod ✭✭✭✭Zzippy


    No I own the house, def not going to be doing a runner!
    Their letter said you get it back after 16 months (strange), but I'd say you'd have to really go looking for it...

    Just seems like another example of rip-off Ireland - give us your money even though we haven't earned it so we can have it sitting in our account and earn interest on it :mad:

    Haven't paid it yet and I'm in the house nearly 9 months, might see how long I can get away without paying it... ;)


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    #7
    MOH
    Registered Users Posts: 6,464 ✭✭✭MOH


    Galwayguy99 wrote:
    No I own the house, def not going to be doing a runner!
    Their letter said you get it back after 16 months (strange), but I'd say you'd have to really go looking for it...

    Just seems like another example of rip-off Ireland - give us your money even though we haven't earned it so we can have it sitting in our account and earn interest on it :mad:

    Haven't paid it yet and I'm in the house nearly 9 months, might see how long I can get away without paying it... ;)

    So you've been paying them regularly for the last nine months but they still want a deposit on the grounds you don't have an account history?!


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    #8
    Zzippy
    Moderators, Sports Moderators Posts: 14,166 Mod ✭✭✭✭Zzippy


    MOH wrote:
    So you've been paying them regularly for the last nine months but they still want a deposit on the grounds you don't have an account history?!

    Yeah, makes it seem even more of a rip-off when you put it like that!
    Might just let the 12 month contract run out and switch suppliers...


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    #9
    Zzippy
    Moderators, Sports Moderators Posts: 14,166 Mod ✭✭✭✭Zzippy


    An update on this - Flogas wrote and said they had scheduled disconnection for the 29th of August unless I paid them the deposit - €250 as I signed up for DD, would have been €390 otherwise. I pointed out that I'm an owner occupier and have been paying the bill since last year no problem, they don't care, its company policy, etc.
    I can't get the deposit back for 16 months, during which time they will be earning interest on my money thats sitting in their bank account and I will be €250 poorer, money I could use to put into the house tbh.
    Another example of rip-off Ireland...


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