Legal Question in Credit and Debt Law in California
My local water company, which is privately owned by the estates where I live, requires that we pay the minimum fee for our water in advance. I do not exceed the minimum usage, however, if my payment is not not made at least 15 days in advance of the delivery of that water, I am assessed a late fee. Is it legal to charge a "late fee" when the payment is made in advance?
I told the president of the board of directors that I felt that the fee was out of line and did not believe I should have to pay it. He informed me that even if I made the standard payment, but did not pay the late fee, they would turn off my water.
Am I going to be forced to pay a late fee to a company to which I am basically the creditor? When they fail to deliver water to me because of a problem with the water system I cannot charge them a fee for failure to deliver water as promised.
1 Answer from Attorneys
Yes, they are similar to any other utility (they are governed by the Public Utilities Commission) in that they can charge you fees in advance of providing services, and if you do not pay, they can assess late fees and shut off your water. Contact the Public Utilities Commission to see if they have any recommendations, or they may even be willing to review it for you to be sure that the utlity has the right to do what it is doing.
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