[late fees for city services - any recourse?]

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Topic Author
protagonist
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Joined: Sun Dec 26, 2010 11:47 am

[late fees for city services - any recourse?]

Post by protagonist »

I just received a "demand letter" from my city to pay an overlooked water and sewer bill. The bill was for $205.54 that broke down as follows:
146,60 for "services through 4/24/13-7/10/13"
12.50 for "meter demand fee"
12.50 for "water demand fee"
25.00 for "sewer demand fee"
8.94 for "interest due".

So I was charged $58.94 on a $146.60 bill....40.2% of the bill in late fees...for a billing period that only ended only 2 1/2 months ago!

It was not sent out to a collection agency.

Is this legal? And if so, how do they get away with it?

I intend to pay it, but I want to know if I have any recourse. The fees seem obscene.

Thanks.
manwithnoname
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Joined: Mon Jul 22, 2013 7:52 pm

Re: Usurious demand fees

Post by manwithnoname »

protagonist wrote:I just received a "demand letter" from my city to pay an overlooked water and sewer bill. The bill was for $205.54 that broke down as follows:
146,60 for "services through 4/24/13-7/10/13"
12.50 for "meter demand fee"
12.50 for "water demand fee"
25.00 for "sewer demand fee"
8.94 for "interest due".

So I was charged $58.94 on a $146.60 bill....40.2% of the bill in late fees...for a billing period that only ended only 2 1/2 months ago!

It was not sent out to a collection agency.

Is this legal? And if so, how do they get away with it?

I intend to pay it, but I want to know if I have any recourse. The fees seem obscene.

Thanks.
Of course its legal because there is a city law or ordinance that authorizes the penalties. My municipality charges interest if bill is not paid within 10 days of due date. Additional fees if they have to collect the bill. If you did not pay the bill when due then you will be subject to penalties.
Sam I Am
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Re: Usurious demand fees

Post by Sam I Am »

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Jack
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Re: Usurious demand fees

Post by Jack »

Look at the bottom of your bill. You will probably see a notice like the following:
Water/Sewer bill is due and payable without interest if received in the Tax Collector's Office by the due date. Any portion of the bill unpaid after this date is subject to a demand fee of $50.00, or $12.50 for meter, $12.50 for water and $25.00 for sewer, and interest at 14% per annum from the date of billing.
This is a reminder to read the terms on your bills carefully. The city is extending you credit and has credit-like terms. Presumably a significant number of people run up unpaid bills for months and then move out. These terms are to encourage paying bills on time.
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serbeer
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Re: Usurious demand fees

Post by serbeer »

It sucks but just pay the bill and be careful in the future. No point arguing with government bureaucracy, however local, when you are in the wrong--you will lose every time.
Topic Author
protagonist
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Joined: Sun Dec 26, 2010 11:47 am

Re: Usurious demand fees

Post by protagonist »

Guess I'll just pay the bill. Thanks.
rayout
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Re: [late fees for city services - any recourse?]

Post by rayout »

Doesn't hurt to call. I am responsible for past due water bills for my rental property. Village was going to charge a turn on fee due to a past due balance from a previous tenant. Called and was polite, stating that I never personally received the shut off notice but would gladly pay the original past due balance. They waived the $100 fee.
The Wizard
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Location: Reading, MA

Re: [late fees for city services - any recourse?]

Post by The Wizard »

Unfortunately, I can't put my water bills on auto-pay which is what I do for most other bills.
But I typically pay them within a day or two of getting them, not waiting till close to the due date.
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frugaltype
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Re: [late fees for city services - any recourse?]

Post by frugaltype »

My town bills quarterly. I haven't seen what the late fees are because I pay on time, not two months late.
tibbitts
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Re: [late fees for city services - any recourse?]

Post by tibbitts »

frugaltype wrote:My town bills quarterly. I haven't seen what the late fees are because I pay on time, not two months late.
Eventually most of us miss payments - although the web has made that somewhat less likely than before. Still, when you have, say, twenty monthly payments, that's 240 a year, so sooner or later something is likely to go wrong. I missed a city fee payment once, but called and they waived the late charge since that was the first time I'd been late with the payment. The late fee would have been less than $10. I've missed several other payments over the years, and bounced a check, too. It happens.
Sam I Am
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Re: [late fees for city services - any recourse?]

Post by Sam I Am »

Message deleted.
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Topic Author
protagonist
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Re: [late fees for city services - any recourse?]

Post by protagonist »

rayout wrote:Doesn't hurt to call. I am responsible for past due water bills for my rental property. Village was going to charge a turn on fee due to a past due balance from a previous tenant. Called and was polite, stating that I never personally received the shut off notice but would gladly pay the original past due balance. They waived the $100 fee.
Auto-pay is not an option. I guess the city figures it will collect a lot more money from its hapless residents if they don't have that option. And despite prior attempts to sweet-talk the woman in the city collector's office (my bills are not often late, but it does happen)... she is not the "fee-waiving" type. If this was the 18th century and you were in the pillory for a late bill payment, she would be the first one to throw eggs.
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