What are your repayment plan policies?

Share on facebook Share on LinkedIn Share on Twitter

Once again, one of the listservs I subscribe to provide the subject matter for a newsletter. This time it was a town manager asking about policies allowing repayment plans.

previous Utility Information Pipeline described the distinctions between extensions, installment services, and payment arrangements. This issue will examine some of the requirements many utilities impose on customers requesting a repayment plan.

Limited number of repayment plans

Most utilities impose a limit on the number of repayments plans a customer may have within a given time frame. For example, only allowing two extensions per calendar year or twelve-month period.

The rationale for this is, under normal circumstances, your customers should be able to pay their bill by your established due date. Customers who habitually request additional time to pay are abusing the system.

No history of dishonored payment plans

For most utilities that offer repayment plans, failing to honor a previous payment plan automatically makes a customer ineligible for future payment plans. If your customer failed to live up to their agreement, why allow them to take advantage of you again?

Signed agreement

Perhaps the most important part is to require a signed agreement stating the repayment terms and consequences of failing to honor the agreement.

This signed agreement should include promised payment dates and amounts, along with any interest or finance charge to be assessed. As with any legal document, it’s always wise to consult with your attorney when drafting the document.

Subscribe to Our Free Blog Newsletter

Categories

Archive

Related Articles

This is the second of two consecutive Utility Information Pipelines reporting the results of the 2020 Utility Staffing ...
For the past few months, I’ve been conducting the 2020 Utility Staffing Survey. This survey has become ...
Following the discussion from the last issue about creating payment plans for customers impacted by COVID-19, today ...