Standard Credit and Deposit Policy
The services provided by XOOM Energy are contingent upon a successful credit review. In the event your credit review determines you do not meet XOOM’s minimum credit requirements or you elect not to authorize a credit review, you may be offered the option to pay a deposit to secure your services. The amount of the deposit required is determined solely by XOOM unless required otherwise by local regulations which shall be detailed below.
How XOOM Evaluates Credit
To cover XOOM’s credit exposure, XOOM offers each applicant the option to pay a deposit or agree to a credit check. XOOM does not have access to the utility payment history of the applicant so we rely on Equifax and Experian; both being well-established credit agencies. This credit check does not impact your score. Most often applicants meet the minimum credit requirements with no deposit needed and the enrollment can proceed.
XOOM relies on the Equifax Advanced Energy Risk Model to evaluate a residential customer's credit. This is different from a FICA or Beacon score that is typcially used when applying for a mortgage.. The Advanced Energy Risk Model is designed specifically for the utility industry. The model calculates the customer's Advanced Energy Risk score by placing a larger emphasis on your previous payment history to industries such as utilities, cable and wireless communication companies. This, along with your remaining credit history, will produce your final score, which XOOM uses to determine whether a deposit is required.
XOOM uses Experian's Commercial Intelliscore Model to evaluate a business customer's credit. This is designed for U.S. businesses across all industry types and sizes. The model will calculate the customer's score by evaluating characteristics and payment history contained within their business credit profile. Based on the score produced by this model, XOOM will then determine if a deposit is required.
Reasons A Deposit May Be Required
It is important that the information XOOM sends to Equifax or Experian corresponds to the information on the customer’s credit file. Otherwise, the results of the credit review may not be accurate, and the customer will be asked to pay a deposit to continue their enrollment.
There are several factors that may impact the results of the credit review including, but not limited to, name and address discrepancies, fraud alerts, file irregularities and/or a lock on the customer’s credit file, as well as their credit score.
Deposit Options for Customers (Based on Customer's Credit Score)
A. Deposit Waiver:
If this option is available, the customer will be notified during the online enrollment process.
Customer submits copies of their three most recently issued utility bills and each bill clearly indicates that the customer is paying their bill on time and in full.
Once they submit the required documentation, they will be sent an email letting them know if the documentation they provided fulfills XOOM’s requirement.
B. Manual Review:
During the online enrollment, all customers have the option of a manual review, where XOOM’s credit department will take a second look at their credit file to determine if the deposit requirement may be waived. An email with XOOM’s final determination will be sent to the customer.
Please note, if a customer chooses one of the above options, their enrollment will not be submitted until XOOM has certified that the information provided fulfills our requirements.
Paying A Deposit
Deposits must be paid in full within 10 days of applying for service to avoid cancellation of an application for enrollment. Customer will be giving the option of paying their deposit by credit card during the enrollment process. If you request a manual review and a deposit is still required, you will be able to pay by credit card as well.
Once your full deposit amount is received, your enrollment shall be processed in accordance to the service Terms and Conditions. Any checks returned for insufficient funds will be charged a $35 fee and may result in cancellation of your enrollment.
XOOM Energy shall refund a customer’s deposit at the conclusion of 12 consecutive on-time payments, unless local regulations require otherwise which shall be detailed below.
If your application for service cannot be fulfilled or is otherwise not accepted, a full refund shall be made.
In the event your service with XOOM is terminated, your deposit shall be used to offset any delinquent balance owed to XOOM. Use of your deposit to offset any delinquent amounts owed to XOOM shall not relieve you of any remaining balance owed in the event there is a balance. You shall remain at all times responsible for all costs, including legal fees, associated with the collection of amounts owed to XOOM. If there is any remaining deposit balance on your account after all your debts have been satisfied, XOOM shall refund the remaining deposit.
Refunds shall be made within 60 days of your deposit qualifying for such treatment.
Texas Specific Deposit Policy
XOOM does not deny service based on your credit score. However, you may have to provide an initial deposit before receiving electricity service if you cannot demonstrate satisfactory credit. An initial deposit may also be required to continue to receive electricity service, if you have been late paying your bill more than once during the last 12 months or your service has been disconnected for non-payment. You may be required to provide an additional deposit to continue to receive electric service if (1) your average annual electric service bill for the last 12 months is at least twice the amount of the original estimated annual bill, and (2) a notice for disconnection has been issued in the previous 12 months. If a deposit is required, the total amount of your deposit will not exceed an amount equal to the greater of either (1) the sum of the next two months estimated billings, or (2) one-fifth of the estimated annual billing.
If XOOM holds your cash deposit longer than 30 days, your deposit will accrue interest from the day we received it at the interest rate established annually by the Public Utility Commission of Texas (PUCT). XOOM will credit any accrued interest on your deposit to your account either on your January bill each year or on your final bill, if requested by the customer.
If you are LITE-UP qualified and are required to pay a deposit greater than $50, you will be eligible to pay your deposit in two installments.
You also may avoid paying a deposit if (1) you have a satisfactory credit rating through a consumer reporting agency, (2) you are at least 65 years of age and you do not have a delinquent balance with your current electric service provider, or (3) you have been a victim of family violence and can provide a certification letter by the Texas Council on Family Violence.