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Neighborhood Legal Services, Inc. |
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Neighborhood Legal Services, Inc. |
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Deferred Payment Agreements
© 1997-8 by Neighborhood Legal Services, Inc.
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What is a Deferred Payment Agreement?
A Deferred Payment Agreement (DPA) is an agreement between you and a utility company to pay for back bills in monthly installments. Before a utility company can disconnect your service (or refuse to reconnect it), it must offer you a DPA. If you can afford to make this agreement, it will allow you to clear up back bills through agreed-upon monthly payments while you pay your current bills. In exchange, the utility company agrees not to disconnect your service or agrees to reconnect it.
How will I be offered a DPA?
The utility company must make a reasonable effort to contact you to discuss a DPA before it cuts off your service. Also, if you attempt to have your service reconnected, the utility company must discuss a DPA with you.
Either shortly before or at the same time you are threatened with a disconnect, you probably will receive in the mail a "standard DPA," which calls for you to make a downpayment and fairly high monthly payments on the amount you owe, or your service will be disconnected (or not reconnected). If you cannot afford the standard DPA, do not sign it. You have other choices which we explain below.
Are there times when the utility company does not have to offer a DPA?
Yes. If you have previously agreed to a DPA and have not kept up the payments, the utility company does not have to offer you a new one unless you can show that your financial situation has changed. You should receive a reminder of payment due from the utility company eight days before it sends you a notice that it plans to disconnect your service. If you have entered into a DPA and are unable to pay as agreed, call the utility company and try to arrange for a different agreement. If you do not make payments on your DPA or contact the utility, you can be refused a new DPA.
Can the utility company force me to make a downpayment in order to receive a DPA?
No. The DPA must take your financial situation into account and be fair. If you cannot afford a downpayment, they cannot force you to make one. If you receive the standard DPA which requires a downpayment, but you can't afford to pay it, contact the utility company.
How much must I pay each month on my back bills?
Again, the DPA must take your financial situation into account and be fair. The amount paid on your back bills can be a little as $10 per month, but you must also pay the full amount of your current bills at the same time. If you receive a standard DPA and you can't afford to pay the monthly amount asked for on your back bills, contact your utility company.
What happens if I enter into a DPA but cannot make the payments?
Contact the utility company and ask to change the DPA. If your financial situation has changed, be sure to tell the utility company. Such changes could include:
- losing a job or other forms of income
- having new medical bills
Remember, if you do not make payments according to the DPA, the utility company does not have to offer you another one. It will simply send you a reminder notice. If you cannot make a payment, it is important that you call the company rather than just ignore the bill.
What should I do if I think the utility company is treating me unfairly?
Complain to the Public Service Commission (PSC) at 847-3400. Or if you have an emergency, you can also call 1-800-342-3377. Being treated unfairly could include:
If you do not receive help from the Public Service Commission, you may call us.
