Average utility debt: $800. Utility debt from electric, gas, water, and internet bills. State public utility commissions regulate billing practices. Many states prohibit disconnection during extreme weather.
Common Financial Management Systems Violations
Adding unauthorized collection fees
Misrepresenting urgency of payment
Failing to provide proper validation notice
Utility Debt Dispute Strategies
1
File complaint with state Public Utility Commission
2
Request billing audit and meter verification
3
Apply for utility assistance programs (LIHEAP)
4
Dispute estimated vs actual billing
5
Challenge reconnection fees if disconnect was improper
Tips Against Financial Management Systems
FMS collects for government agencies — verify the debt with the original agency
Government debts may have offset provisions — understand your rights
Request a payment plan if the debt is valid — most agencies must offer one