Residential Credit & Deposit Policy
CLAVERACK COMMUNICATIONS, LLC will adhere to the Pennsylvania Public Utility Commission’s regulations regarding credit determinations and deposits. CLAVERACK COMMUNICATIONS will ensure that this policy is applied in an equitable and non-discriminatory manner to all potential and actual customers, without regard to race, religion, gender, age (if over 18), national origin or marital status. Deposit policies shall be based on the credit risk of the applicant or customer, rather than upon the credit history of the premises or collective reputation of the area.
A. Credit Determination for New Accounts
CLAVERACK COMMUNICATIONS will provide residential service without requiring a deposit when the applicant satisfies one of the following requirements:
- Earlier Payment History. If the applicant previously had service with CLAVERACK COMMUNICATIONS within the last 24 months before the date of the application and the following conditions exist:
- Service was furnished in the name of the applicant, and there is no unreturned equipment.
- Service was not suspended for nonpayment nor terminated during the last 12 months of service.
- The applicant does not have an unpaid balance from earlier service occurring within the last four years.
- The applicant was not required to pay a security deposit under Section 64.35.
- Ownership of Real Property. If the applicant verifies ownership of or the entry into an agreement to purchase real property in the CLAVERACK COMMUNICATIONS territory or is renting a residence under a lease of one year or longer, unless the applicant has an otherwise unsatisfactory payment history with CLAVERACK COMMUNICATIONS within 2 years prior to the application date.
- Prior Utility Payment History. The applicant has prior satisfactory credit history for use of utility services. Prior to conducting a search, applicant authorization is required.
- Credit Information. The applicant provides information and verification demonstrating that he or she is not an unsatisfactory credit risk.
- The absence of a prior credit history or refusal to authorize a search does not, of itself, indicate an unsatisfactory credit risk and does not constitute grounds for requiring a deposit.
- CLAVERACK COMMUNICATIONS may request information, including the following:
- Applicant’s social security number
- The name of the employer of applicant
- The place and length of employment
- Residence during the previous 5 years
- Letters of reference
- Credit cards
- A significant source of income other than from employment
If a credit investigation is expected to take longer than 3 business days, CLAVERACK COMMUNICATIONS will provide service pending completion of the investigation.
B. Deposit Requirements for Existing Customers
CLAVERACK COMMUNICATIONS may require a deposit to secure the account of an existing customer if any of the following conditions exist:
- Delinquent account: A customer has made payment of two consecutive bills, or of more than two bills within the preceding 12 months, after the payment due date. Before requesting a deposit, CLAVERACK COMMUNICATIONS will give the customer written notification of its intent to request a deposit if current and future bills continue to be paid after the due date.
- Notification shall clearly indicate that a deposit is not required at this time but that, if bills continue to be paid after the due date, a deposit will be required.
- Notification may be mailed or delivered to the customer together with a bill for telephone service.
- Notification shall set forth the address and telephone number of the CLAVERACK COMMUNICATIONS office where complaints or questions may be registered.
- The subsequent request for deposit shall clearly indicate that a customer should register a question or complaint about that matter prior to the date the deposit is due in order to avoid having service suspended pending resolution of the dispute, including the CLAVERACK COMMUNICATIONS telephone number for such communications.
- Conditions to the reconnection of service: CLAVERACK COMMUNICATIONS may require a deposit as a condition for reconnection of service after suspension or termination of service for nonpayment.
- Failure to comply with Payment Agreement: CLAVERACK COMMUNICATIONS may require a deposit when a customer fails to comply with the terms and conditions of a payment agreement, whether or not service has been suspended or terminated.
C. Method of Making Deposit
- Posting a cash deposit.
- Applicants: The amount of the cash deposit from an applicant may not exceed the estimated 2-month bill for basic service plus the average 2-month toll charges for existing residential customers in the applicant’s exchange during the immediately preceding 12-month period. No more than one half of the deposit amount may be required prior to providing service, with the balance due within 30 days.
- Existing Customers: The amount of a cash deposit required from an existing customer may not exceed the customer’s average 2-month bill, including toll charges, during the preceding 12-month period. The deposit shall be paid within 20 days of the request for the deposit.
- The amount of the deposit shall be adjusted to reflect Lifeline funding for enrolled and certified customers.
- Furnishing a Written Third-Party Guarantee. Another customer who has met or can meet the credit standards may furnish a written guarantee to secure payment in an amount equal to the cash deposit required from the applicant or customer. The guarantor shall be discharged when the applicant or customer meets the terms and conditions for the refund of deposits per Section 64.37.
D. Refund of Deposits
CLAVERACK COMMUNICATIONS will refund the cash deposit, plus accrued interest, under the following conditions:
- Termination or permanent discontinuance of service. Note, however, that the transfer of service to another location within the service territory shall not be deemed a discontinuance of service.
- Credit Established. At the customer’s request, CLAVERACK COMMUNICATIONS will review, up to one time per 3 month period, whether the customer can meet the CLAVERACK COMMUNICATIONS credit requirements.
- Prompt Payment of Bills. After a customer has paid bills for service for 12 consecutive months without having service suspended or terminated and without having paid bill subsequent to the due date on more than two occasions.