Small Claims VS Utility Company?

592 Views | 6 Replies | Last: 3 days ago by CS78
CS78
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New tenant set up account with suburban propane, moved in but no propane. She calls them and they tell her that the previous tenant hadn't paid his bill since last May and that someone has to pay $580 before they'll turn the propane on. Obviously Ill pay it, to get it running but I plan to file a small claims suit. I've always been curious how that process works and sometimes it's just the principalities of the matter. I'm in talks with suburban and hoping they will back down. I've pointed out that they need to collect from their customer. And that they have a duty to limit their losses by shutting down services in a timely manner. They dont get to just let someone slide for a year and then hold the property hostage. Curious if anyone has ever dealt with a utility company for a similar situation? Fun stuff!
Martin Q. Blank
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You're talking about propane that is delivered every month? Why did they keep delivering it if the bill was not being paid? Why not just switch propane companies?
Lone Stranger
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Does the location (state/county/city, etc.) have any regulations on the provider's ability to disconnect services during the colder months so customers don't supposedly freeze? That is always the kicker in some of these situations to check on or if it was critical for some type of medical equipment where there are lawyer induced regulations and procedures about not being able to disconnect for non-payment. There are places where shysters have figured out they don't have to pay a bill at all from Oct to April as long as in May/June they start paying say $25 a month towards the outstanding balance and can't be disconnected.
CS78
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It's Meadow Creek in Wellborn. Community propane system ran by Suburban Propane.

Never heard of any laws around here of not being able to shut off in the winter.
agnerd
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AG
CS78 said:

I've pointed out that they need to collect from their customer. And that they have a duty to limit their losses by shutting down services in a timely manner. They dont get to just let someone slide for a year and then hold the property hostage.

Not the same, but I'm involved with a water utility. When the a customer skips out on bills, the utility hooks up the new customer and starts sending demand letters to the forwarding address (assuming the deposit doesn't cover it) before sending the account to collections. I agree with your opinion that the utility's problem lies with the former customer and doesn't have anything to do with the current customer. Keep hammering that point home.
Lone Stranger
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Suburban Propane....Meadow Creek.....Ohhhhh, that explains it. I know local realtors that will directly steer people away from there or emphasize buyers had better do their homework and due diligence on the propane supplier and multiple problems with that supplier in that subdivision in recent years. Sounds about right for their business model.
CS78
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Lone Stranger said:

Suburban Propane....Meadow Creek.....Ohhhhh, that explains it. I know local realtors that will directly steer people away from there or emphasize buyers had better do their homework and due diligence on the propane supplier and multiple problems with that supplier in that subdivision in recent years. Sounds about right for their business model.


Looks like we got it settled but I'm not happy about it. I read your response beforehand and thought it seemed odd that realtors would take that strong of an opinion about a propane company. Ive had this house for years and never had a problem.

I finally spoke to the manager Debbie Schnabel this afternoon. I had sent her some emails which she claims she "never got". Pretty sure she just didnt want to put a response in writing so I gave in and called because my tenant needs hot water. If I didnt pay it, she threatened me with filing a lien against the property, since the meter is on my property. I suspect those liens are filed on houses where the prior owner moves out and hasnt paid their bill. And that is the basis for your realtor contacts opinions. My response was that I would be paying it today but tomorrow morning I would be filing in small claims court due to the fact that I did not have an account with them and that they allowed the bill to go unpaid for almost a year.

She then responded that she would waive the $580 if I paid a $125 unlock fee and signed up for an account so they could hold me responsible in the future, if a tenant doesn't pay. I reluctantly agreed. Again, they've got you by the short hairs because the new tenant needs gas and shouldn't be stuck in the middle of this.

Ive got other houses around south CS with Wellborn water and they do the same thing. Refuse service to a tenant unless the owner has an account they can collect against. Been that way for years and it's always rubbed me the wrong way. The minute someone is late on a water bill, I start getting phone calls, letters, and emails. My response is always the same. I tell them to lock the damn meter. It's not my job to play collections officer for a company. The teeth are in their ability to lock the meter. I cant legally go lock it.

Does anyone else deal with this with utility companies in other towns? Seems shady as hell!
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