Question

Utility bill has gone to collections, yet utility company wants payment on it to restart service, why?

My gas bill went to collections after I was unable to make payment on it. The utility company sent the bill to collections. I got a written notice from the collections agency. Then I called the gas company to restart the service and they want full payment on the account or they won't restart my gas. I would like to work this out with the collections agency and have the gas company restart my gas. Is it legal for the gas company to ask for payment once they've sent the bill to collections? BTW, I am in Kansas, if that matters.

5 years ago - 5 answers

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It depends on whether they truly sold the account to the agency or if they are just contracting with them for collection. Where I work, we do both depending on the age of the debt. Call the gas company, they will tell you who you need to pay. It's in their best interest to be honest with you because if they try to collect it themselves after it's sold, the agency who they sold it to can sue them for breach of contract. Hopefully the debt is still with the gas company, because if so you will likely have a better shot at resuming business with them. If it's sold, the gas company may (understandably) see you as too much of a risk and deny your business. Good luck with this.

Source(s):

5 years ago

Other Answers

Is the collections agency a subsidiary or branch of the utilities company?

Regardless, you will probably want to attempt to find a new company for your gas.

by mt_pelion - 5 years ago

Well let's see you did not pay for product used so they sent you to collections which you have not paid and now you want them to give you credit again and they don't want too unless you pay them for your previous bill correct?

Can you not see what's wrong with this picture? You ripped them off once and can't figure out why they will not give you credit again without paying them.

And to answer your question yes it's completely legal.

Source(s)

by SPIFIMAN1 - 5 years ago

Yes, it is legal you still owe them money from a previous bill, they are not going to turn your gas back on until you pay the bill in full, and then they can require a deposit which they will most likely do because of non-payment on the first bill. Get your gas turned on in someone else's name until you can pay them and then switch it back to yours.

Source(s)

by 2blessedby3 - 5 years ago

Yes it's legal. Do you really think they'd sent one bill to collections and let you start over again with a clean slate. If that's how it worked no one would ever pay their bills.

by redhairedmama75 - 5 years ago