Caution urged as discount utility service is offered
Area residents are being warned about a possible scheme to defraud homeowners under the guise of lowering utility costs.
In Sumpter Township last week, police received reports of two young men posing as representatives of utility provider DTE going door-to-door in neighborhoods. Police said the suspects were approaching residents, claiming they could lower the costs for utility services. Police suspect the two may be solicitors for a competing utility company.
In Romulus, an 84-year-old victim of a similar ploy signed up for the promised reduction in gas service costs, which resulted in him paying significantly more to the new provider. The senior citizen was solicited for the service change by phone, according to reports, and paid more than $1,400 in higher costs for gas service.
He said he was promised lower bills, but the monthly service that previously cost $76 from DTE increased to $224. Bills continued to increase each month, he said. The victim called DTE and confirmed the disparity in monthly charges.
A spokesman from DTE said the ruse is not actually illegal and is allowed by state law, which allows customers to buy service from alternate providers. Often, however, the spokesman said, the monthly charges are much higher than the savings promised to the homeowner. “The prices may be different from what the fine print says,” the spokesman noted. The prices are not regulated and are subject to whatever terms and conditions in the agreement the customer signs.
A DTE representative cautioned that no door-to-door solicitation is ever authorized, and the company does not ever offer limited-time discounts. If approached by a salesperson, in person or by phone, the company urges customers to call DTE for information.
