[IN] Can a utility company disconnect service at your current home over a past-due balance?

IN Consumer Protection

Liz

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Got it, thanks. Did you receive any final bill or confirmation from the electric company when you moved out of your previous residence? I ask, because they do have to notify you of any debts. You also have the right to dispute the amount. Indiana's utility dispute process is set out in (170 IAC 16-1-4) and (170 IAC 16-1-5), and the disconnection rules for electric utilities are in (170 IAC 4-1-16).

Legally, they should not refuse service while the amount is in dispute. Under (170 IAC 16-1-7), a customer who keeps paying all undisputed charges may not be disconnected over the disputed charges while the dispute is under review.

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Im in Indiana, Allen County. My electic company is telling me they will disconnect service to my current address if I do not pay them $345 in past due payments that are associated to a different account number, possibly from an apartment I lived in over 2 years ago. Do they have legal right to disconnect my service over debt that is for a different address? I need help with interpreting the Indiana Code 170 IAC 4-1-16 that says they cant disconnect service for debt tied to a different address if its less than 45 days old. The other concern is that I was mailed a collection letter from a debt collection company for the same debt 6 months ago, so to my knowledge the utility company shouldn't even have rights to collect the debt if they sold it to the collection company. Am I correct about that?

Lexi, Chatbot

I understand how stressful it can be to face disconnection of your utility service over past due payments. Can you confirm if you have already communicated with the electric company about this issue?

Yes.

Lexi, Chatbot

Have you received any written notices or documentation from the electric company regarding the debt and the potential disconnection?

Yes I received a bill that shows the debt and my current bill together stating its a disconnection notice.

Lexi, Chatbot

Is there anything else the Consumer Protection Lawyer should know before I connect you? Rest assured they'll be able to help with your disconnection notice.

I don't know.

Liz

Hi there! Welcome to our service. My name is Liz and I've been an attorney for more than a decade, and I am here to assist with your legal concerns. Just so you are aware, our service is a legal information-only site. No attorney-client relationship is formed from our conversation. So I can best help, were you previously ever given notice of the supposed debt?

Not that I remember.

Liz

When you moved out of the other unit, did you keep any records of the disconnection?

No records of the disconnection specifically, no. I think I handled it over the phone.

Liz

I'm trying to look back through my email for it. Yes, I have a letter written to send them by certified mail to dispute and ask for proof they own the debt.

Liz

That's a good next step. Additionally, if the debt has been sold to a collection agency, the original creditor (in this case, the utility company) typically loses the right to collect on that debt. This is because the collection agency now owns the debt and is responsible for collecting it. So they then can't use that to collect.

Right, that's my understanding. Which also means they can't legally shut off my power over not paying that, correct? One of my concerns though is they sent that as a bill that includes what I owe this month for my current address. How can I get them to allow me to pay for specifically what I owe for my current address and not have it applied to the debt they're potentially not allowed to collect? I don't want to become late on my current bill.

Liz

If they can't collect, they also can't shut off your power. They also can't deduct it from your payments.

How can I make sure they don't try to put what I pay them toward anything other than my current address dues? What would I need to say to them?

Liz

You can send a written letter or email to the utility company specifying that your payments should only be applied to your current account. Include your current account number and address in the communication. You can also request they send receipts for how your payment is applied so that you can see track.

Good to know, thank you. I need help with interpreting the Indiana Code 170 IAC 4-1-16 that says they cant disconnect service for debt tied to a different address if its less than 45 days old. Does this mean that if theres debt for a different address that is older than 45 days that they legally can shut off power to current address?

I'd like to understand if there's ever any reason they can legally shut off power at a current address over debt tied to a different address.

Liz

They can shut off power for a debt older, but not if it's in dispute.

Ok and who determines when the dispute is over if they provide unsatisfactory answers?

Liz

Usually you would have to escalate it to court to have it decided.

Ok. By the way, I think I found the last regular bill for the old address they might be trying to collect for, but I don't see any final bills sent after that. And they never showed anything about this on any bills for over the last two years.

Liz

Which did you change your address with the state?

By with the state do mean like tied to my credit report? My address did get updated on that not long ago.

Liz

I meant like with USPS or the DMV, because then the utility would have been able to get your forwarding address.

I mean since living in that apartment I've updated my address with USPS twice. Why would they not have gotten my forwarding address when I first moved out of that apartment?

Liz

They should have. I was asking because sometimes people don't update, and then the notices are lost in the mail.

But that also doesn't make sense considering I've also directly set up new service with them at the last two places I've lived.

Liz

Well I agree, that now makes no sense. Because why wouldn't they bring it up before.

Right. I think that's all I need to know for now. Ok, thank you for your help.

Hey, actually, after looking at the dates and considering Memorial Day, now I'm thinking I don't have time to send a certified letter for them to receive before they're saying they'll shut off the power. Would it work if, as soon as I send the letter, I call them and tell them I sent a dispute letter and ask them to consider the matter under dispute? Or could it not be considered in dispute until they receive the letter?

Liz

You can definitely call them to inform them that you've sent a dispute letter. Or you can email the letter as well as sending via mail.

When I call and tell them would it be considered that the dispute has started though? Ill try to call to get an email I can send it to also. They seem to intentionally only list a phone number for disputes, they don't list any other ways to contact them about it. Just to get an address from them took a half an hour of someone looking for an address because they couldn't find one. I know disputing by phone wont be as strong as having written evidence.

Can I ask them over the phone to send me an email confirmation stating the matter is under dispute and that they will not shut off service?

Liz

Calling them to inform them of the dispute is a good step, and it can help establish that you are actively disputing the debt. You can let them know the letter is also coming via mail.

Liz

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