Can a utility company bill me for an error in billing from five years ago? (new, old)

[thecoalman]

We had to deal with these parasites after a relative died with no money and unpaid bills. The laws may vary slightly by state.

Originally Posted by harry chickpea

.
1. THEY have to provide proof of a valid bill, not you.

Yes.

2. You need to dispute the charge in writing, certified to them and the utility company.

Once they call you they have to send a letter in X days. Within 30 days you want to send a letter to the collection agency , DO NOT acknowledge anything. Keep it short and to the point, "I dispute this debt and do not call me again". After that they can only call you once if they have changed what they are doing such as if they want to inform you of an impending lawsuit.

This will stop the calls and letters from most of them. This is considered junk debt and they pay pennies on the dollar for the accounts. If they run into anyone that is fighting it they'll move onto an easier target.

3. Collection has to fall within the statute of limitations for that state. IIRC, 4 years is the limit in AL.

The laws and limits vary here but the SOL at least in my state doesn't preclude them from trying to collect the debt. Once the SOL has been reached they can no longer file in court for a judgment but can continue to try and collect.. This is why it's important that you do not acknowledge anything because that can reset the SOL.


Here's the rub....... these junk debt accounts are passed around like tic-tacs and sold to other companies. Once a new company gets it the BS starts all over again.

As far as your credit score once you have disputed the debt if they don;t provide documentation then you can have anything they put there wiped out. I forget what the exact process is for that.

[thecoalman]

Originally Posted by Ted Bear

This is a fabulous response. DO NOT DEAL WITH A COLLECTION AGENCY.

The problem is unless you want to deal with constant phone calls and letters you have too. Ideally you're able to get it sorted out with the original company but in the mean time you'll be dealing with constant barrage of calls and letters unless you take action.

[harry chickpea]

Here is your boilerplate from
Sample Letter For Disputing A Debt Collection Notice - The Consumerist

Enjoy:

Initial Debt Collection Dispute Letter

Today's Date

Your Name
Your Address

Collector's Name
Collector's Address

Dear {insert name of collector or company},

I am writing in response to your (letter or phone call) dated {insert date}, (copy enclosed) because I do not believe I owe what you say I owe.

This is the first I've heard from you, or any other company on this matter therefore, in accordance with the Fair Debt Collection Practices Act, Section 809(b): Validating Debts:

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

I respectfully request that you provide me with the following information:

* (1) the amount of the debt;
* (2) the name of the creditor to whom the debt is owed;
* (3) Provide a verification or copy of any judgment (if applicable);
* (4) Proof that you are licensed to collect debts in (insert name of your state)

Be advised that I am fully aware of my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. For instance, I know that:

* because I have disputed this debt in writing within 30 days of receipt of your dunning notice, you must obtain verification of the debt or a copy of the judgment against me and mail these items to me at your expense;
* you cannot add interest or fees except those allowed by the original contract or state law.
* you do not have to respond to this dispute but if you do, any attempt to collect this debt without validating it, violates the FDCPA;

Also be advised that I am keeping very accurate records of all correspondence from you and your company including recording all phone calls and I will not hesitate to report violations of the law to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.

I have disputed this debt; therefore, until validated you know your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them of my dispute with this debt. Reporting information that you know to be inaccurate or failing to report information correctly violates the Fair Credit Reporting Act 1681s-2. Should you pursue a judgment without validating this debt, I will inform the judge and request the case be dismissed based on your failure to comply with the FDCPA.

Finally, if you do not own this debt, I demand that you immediately send a copy of this dispute letter to the original creditor so they are also aware of my dispute with this debt.

Signature here
Your Printed Name

[Coldjensens]

File a complaint with the PUC. That always gets their attention.

When we did, the utility company suddenly decided most of their billings were too old and they were not allowed to pursue them. They were charging us for three years back claming they had only estimated out usage for three years and now that they read the meter for the first time, we owed them $6700. After a ton of run around, I filed a complaint with the PUC and got a call from a vice president of the utlity almost immediately. She said they could only go back 6 months and they could not bill us for hte rest so they were dropping it. The cut their claim to about $1200 and we paid it. I am not sure whether the six month thing is real, or just BS because they did nto want to admit that they just made up the bill for $6700 (it was an impossible number, we had been paying them $50 - $600 per month, plus their supposed estimates were not consistent. We would pay $600 one month, $150 the next, $480 the following month. Our usage does not change that dramatically from month to month. It changes with the seasons, but not monthly. I think it was some sort of BS or mistake and they were trying to correct it. We probably should not have paid the $1200 but we desperately needed our credit history cleared.

[piyf]

If they call back tell them you want proof and to mail it to you.

If it was me and I didn't have any documentation. I'd sit it out for the next 2 years and take the chance. After that anything from that account gets removed from your credit report if you never give the collection agency a dime.

[missik999]

Thanks for all the great advice. Here is the update:

I called and spoke with a customer service agent for the utility. She looked over the records and admitted that they failed to take the service out of my name, as I had requested, at the closing. She said it was not their fault, as the new owner had never called to put the service in their his name, so it just continued under my name.

I told her that the utility had the responsibility to take the service out of my name, and disconnect it if the new owner didn't call to change it to his name. She agreed, but said that utilities have one full year to "correct" errors. So I am still responsible for the amount due.

I asked why they never billed me again, and she said it was assigned to a collection agency five years ago after the error was discovered. It was recently assigned to a new collection agent, as they turn over all past due accounts to a new collection agency every five years.

I told her that I had never received any bill or notice from either the utility or the first collection agent. At this point she said that we could go back and forth arguing all day but it would not change the issue that I owed the money.

I told her that I would send in my documentation and she said that since it had been assigned to a collection agency the utility would not be able to accept documentation or any written correspondence. I could only communicate with the collection agency.

So now I will send written communication, using the template harry chickpea posted.

Thanks again to all.

[Debsi]

Originally Posted by missik999

Thanks for all the great advice. Here is the update:

I called and spoke with a customer service agent for the utility. She looked over the records and admitted that they failed to take the service out of my name, as I had requested, at the closing. She said it was not their fault, as the new owner had never called to put the service in their his name, so it just continued under my name.

I told her that the utility had the responsibility to take the service out of my name, and disconnect it if the new owner didn't call to change it to his name. She agreed, but said that utilities have one full year to "correct" errors. So I am still responsible for the amount due.

I asked why they never billed me again, and she said it was assigned to a collection agency five years ago after the error was discovered. It was recently assigned to a new collection agent, as they turn over all past due accounts to a new collection agency every five years.

I told her that I had never received any bill or notice from either the utility or the first collection agent. At this point she said that we could go back and forth arguing all day but it would not change the issue that I owed the money.

I told her that I would send in my documentation and she said that since it had been assigned to a collection agency the utility would not be able to accept documentation or any written correspondence. I could only communicate with the collection agency.

So now I will send written communication, using the template harry chickpea posted.

Thanks again to all.

GRRR!! What nerve!! That call must have raised your blood pressure.

Utility companies suck. I used to deal with a couple in Michigan, setting up power for REO properties. Occasionally somebody would purchase one of our properties and "forget" to put the power in their name. We'd realize it when we got the next month's bill, pay it, and insist the utility not bill us anymore. It always worked.

[thecoalman]

Originally Posted by missik999

I received and paid all final bills.

Do you have any paperwork about this?

At this point I would take the suggestion above and contact the PUC as suggested before, you *might* get somewhere with them.

If the bill went unpaid that means the new owner wasn't paying it? Have you contacted them? I don't see any reason why you couldn't sue them in small claims. If you call them and elude to that fact you might get somewhere with them.

She agreed, but said that utilities have one full year to "correct" errors. So I am still responsible for the amount due.

They may have a full year to correct their billing errors such as if the meter was misread but that isn't going to include assigning the responsibility to someone that isn't responsible.

So now I will send written communication, using the template harry chickpea posted.

I'd caution you about anything in writing, I'd keep it short and direct to the point. The letter will stop the calls unless it gets assigned to another collection agency but you're going to have to deal with this. It's not going to go away until you get it straightened out. You might end up dealing with this for years if you don't. You're just one name on a very long list.

[akck]

Originally Posted by missik999

Thanks for all the great advice. Here is the update:

I called and spoke with a customer service agent for the utility. She looked over the records and admitted that they failed to take the service out of my name, as I had requested, at the closing. She said it was not their fault, as the new owner had never called to put the service in their his name, so it just continued under my name.

I told her that the utility had the responsibility to take the service out of my name, and disconnect it if the new owner didn't call to change it to his name. She agreed, but said that utilities have one full year to "correct" errors. So I am still responsible for the amount due.

I asked why they never billed me again, and she said it was assigned to a collection agency five years ago after the error was discovered. It was recently assigned to a new collection agent, as they turn over all past due accounts to a new collection agency every five years.

I told her that I had never received any bill or notice from either the utility or the first collection agent. At this point she said that we could go back and forth arguing all day but it would not change the issue that I owed the money.

I told her that I would send in my documentation and she said that since it had been assigned to a collection agency the utility would not be able to accept documentation or any written correspondence. I could only communicate with the collection agency.

So now I will send written communication, using the template harry chickpea posted.

Thanks again to all.

So, from your original post, you took care of it within a year, but because the utility company screwed up and didn't close your account properly, you owe them for their errors. It sounds like they notified the first collection agency about the error, so that's why you never heard from them, but they failed to correct the error in their system.

While I don't think you'll have to pay anything, you'll likely face this again in 5 years when they send it out again. In addition to dealing with the collection agency, I'd also file a complaint with the local PUC. It might get the utility to clean up their old records.

If you haven't done so already, request they respond in writing. That way you have written documentation should this come up again.

[harry chickpea]

Originally Posted by missik999

Thanks for all the great advice. Here is the update:

I called and spoke with a customer service agent for the utility. She looked over the records and admitted that they failed to take the service out of my name, as I had requested, at the closing. She said it was not their fault, as the new owner had never called to put the service in their his name, so it just continued under my name.

I told her that the utility had the responsibility to take the service out of my name, and disconnect it if the new owner didn't call to change it to his name. She agreed, but said that utilities have one full year to "correct" errors. So I am still responsible for the amount due.

I asked why they never billed me again, and she said it was assigned to a collection agency five years ago after the error was discovered. It was recently assigned to a new collection agent, as they turn over all past due accounts to a new collection agency every five years.

I told her that I had never received any bill or notice from either the utility or the first collection agent. At this point she said that we could go back and forth arguing all day but it would not change the issue that I owed the money.

I told her that I would send in my documentation and she said that since it had been assigned to a collection agency the utility would not be able to accept documentation or any written correspondence. I could only communicate with the collection agency.

So now I will send written communication, using the template harry chickpea posted.

Thanks again to all.

Interesting. If true, the new owner committed fraud. That raises possibilities, such as slapping a lien on the house. If the house has not been sold in the meantime, you might also instruct the utility company to disconnect service to it immediately until you can pay the bill.

Dear utility company.

You have invoiced me for service at 123 Lala Lane for a period of time after you were instructed to cease service in my name and transfer service to Joseph Lying Idiot. While I still deny that this is a valid billing, it has become obvious that I must play by your rules. Therefore, I demand that you stop all electrical service to said address immediately and until I have had a chance to pay your invoice. I also instruct you that there are NO authorized agents that I am allowing to demand a reconnect to this address. Once my bill to you has been paid and my name removed from your customer list, I alone will authorize a reconnect to said property. Under your rules, I cannot accept the chance that I might incur any greater debt to you. At this time I can only afford $10 a month, but once you stop service to the address I will immediately begin those payments. If there is a disconnect charge, please add it to my bill.

Sincerely...


When they respond that they aren't allowed to do that, then they are by fiat admitting that they don't have the legal standing to bill you.

(I would do that anyway, just to be a pr*ck and get things moving.)