Falling behind on your water bills can happen to anyone, but it’s important to understand what could happen if they go unpaid and what you can do to avoid further debt. By seeking help early, you can manage your situation before it becomes overwhelming.
Paying your monthly water bill is a necessity for every household and business that relies on running water. But what happens if you fail to pay your water bill on time or ignore it completely? Unfortunately, not paying your water bill can result in some unpleasant consequences. In this article, we will explore the common outcomes of unpaid water bills and provide tips on how to avoid potential issues.
Overdue Notices and Fees
When you first miss paying your water bill by the due date, the water company will send an overdue notice alerting you that your payment is late. This notice serves as an initial warning and reminder to pay the outstanding amount. If you still do not pay after receiving the overdue notice, the water company may start tacking on late payment fees. These fees are typically a percentage of your monthly bill and increase the longer your bill remains unpaid. For example, your water company may charge a 10% late fee after 30 days and up to a 25% fee after 60+ days overdue. Late fees quickly add up, making your original bill more expensive.
Disconnection Warning
If you continue to ignore notices and do not arrange payment with the water company, the next step is usually a disconnection warning. This strongly worded notice states that if you do not pay the past due amount immediately the water company will proceed with disconnecting your service. Once you receive a disconnection notice, it is absolutely vital to contact the water company right away. Disconnection means you will no longer have running water in your home or business – a very serious outcome.
Water Shut Off
After providing ample warning, the water company may make good on their threat and physically shut off your water if you still have not paid The disconnection process involves a company technician manually closing the shut-off valve that provides water to your building. Once the water is shut off, you will not have access running water for any purpose until you pay the overdue amount and reconnection fee in full. Having your water turned off can make daily living extremely difficult and jeopardize business operations
Reconnection Fee
If your water gets shut off, you will need to pay a specific reconnection fee to restart service on top of your past due bill. Reconnection fees are often $50 or more. The process of reactivating your water requires a return visit from a technician to manually turn your water back on by opening the shut-off valve. The reactivation process takes time, so even after paying you may endure a day or more without water while waiting for the company to restore service.
Property Lien
In a worst-case scenario, an unpaid water bill can eventually result in a lien being placed against your property. If the water company is unable to collect payment after exhausting all other options, they may file a legal lien claim with the county against your property. The lien gives them a secured interest in the property for the amount owed. If you eventually sell the property, the water company lien would need to be settled using the sale proceeds.
Credit Damage
To recover unpaid balances, water companies may report delinquent customers to credit bureaus. Having an overdue water bill that gets reported can drag down your credit score. Poor credit resulting from unpaid bills makes it more difficult to obtain loans, mortgages, rental housing, and more due to perceived financial risk.
Tax Liens
Some municipalities attach water service charges to property tax bills. If you fail to pay the portion of your tax bill related to water service, it could result in a tax lien on the property. Tax liens also negatively impact your credit and ability to sell or refinance the property until repaid.
Collections & Lawsuits
For large outstanding water balances, utility companies may enlist collection agencies or pursue legal action. Collection agencies will attempt to recover the debt through aggressive telephone calls, letters, and other techniques. Lawsuits lead to judgments allowing the water company to pursue repayment by garnishing wages or placing property liens. Both collections and lawsuits make it extremely difficult to obtain any type of financing or credit with the black marks on your record.
Tips to Avoid Water Shut Offs
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Pay on time – Mark your due date on your calendar and pay by the deadline. Sign up for reminders from your provider.
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Enroll in auto-pay – Set up automatic payments from your bank account so your bill gets paid on schedule without any effort.
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Seek payment assistance – If struggling financially, ask your provider about reduced rates or payment plans. Government and non-profit programs may also be able to help.
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Address leaks – Detect and repair any leaks, drips, or other water waste contributing to high usage and larger bills.
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Monitor usage – Note your monthly usage and look for sudden spikes that could indicate leaks or other problems.
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Dispute errors – If you believe your bill is inaccurate, file a dispute right away before non-payment penalties begin.
Not paying your water bill can have very negative financial and legal consequences. Stay on top of your account, address payment problems proactively, and seek assistance if needed. Avoiding a water shut off should be a top priority for every household and business owner.
What Happens If You Don’t Pay?
If water bills go unpaid, water companies have the right to take action. Heres what could happen:
- Reminder Letters: You’ll receive reminders or warning letters about the unpaid bill.
- Debt Collection: If the bill remains unpaid, your water company may pass your debt to a debt collection agency, which can result in additional fees.
- Court Action: In serious cases, you may be taken to court
Unlike energy companies, water suppliers cannot disconnect your water supply for unpaid bills. However, the financial consequences can still be severe, including damage to your credit score.
Steps to Take Before It’s Too Late
If youre struggling to pay, its crucial to take action early. Here are some steps you can take:
- Contact Your Water Company: Reach out to your water company as soon as you realize you’re struggling to pay your bill. They may be able to offer a payment plan or spread the cost into smaller, more manageable payments.
- Apply for Financial Help: Many water companies provide access to schemes like WaterSure for people with medical conditions or large families who use a lot of water. This scheme can help cap your bills at a fixed rate.
- Seek Support from United Utilities Trust Fund: If you’re a United Utilities customer and facing financial hardship or already have water debt, United Utilities Trust Fund may be able to help you clear your arrears and get back on track.
What Happens if You Don’t Pay Your Water Bill? (Don’t Panic!)
FAQ
Does not paying water bill affect credit?
If you pay your rent, utilities, and medical bills on time, they won’t affect your credit score because credit bureaus don’t report them. But if they’re very late or in collections, they’ll likely get reported and affect credit scores negatively.
Can your water be shut off in California?
Get information from your water provider. Most water companies can’t cut off your water in California unless your bill is more than 60 days past due.
What happens if I don’t pay my water bill in California?
A final disconnection notice will be sent if you don’t follow the terms of an amortization plan for 60 days or more, or if you don’t pay your current residential service charges for 60 days or more.
Is water lienable in PA?
If you don’t pay your water and/or sewer bills, the property will be repossessed. This is true whether the service is for a tenant or someone else who isn’t the owner.
What happens if I don’t pay my water bill?
If you don’t pay your bill, your water company should contact you twice before they take further action. If you’ve told them your preferred method of contact, they should use this. If you have more than one unpaid water bill, you should get separate reminders for each bill. Your water company has to follow guidelines about how to help you.
What happens if you don’t pay your utility bills?
Old utility bills need to be paid off. Not paying utility bills can have both short-term and long-term problems, such as: The utility being turned off. In some states, it’s illegal to turn off heat or electricity in the winter, but if you don’t pay, you usually lose service until you pay.
What happens if you don’t pay for water service?
Electricity or heat being turned off: In many states, it’s against the law to do so in the winter. However, if you don’t pay, you usually lose the service until you pay. In most states, a water company can shut off service with 10 days notice.
What if I’m still having trouble paying my bills?
If you still can’t pay your bills after making the changes, you should call the utility company and let them know. A utility company can’t legally turn off the power in the winter in many northern states. But that doesn’t mean you won’t have to pay the bill at some point.
What happens if I miss a water payment?
Typically, after a few months of missed payments, the water utility will contact you with a warning. They will give you at least a week’s notice before they shut off your service. Read your mail to find out if your water is about to be turned off. Your provider is required to deliver a written warning.
What should I do if a water company refuses to pay my bill?
Even if they refuse, it’s worth paying what you can and keeping your proof of payment. In the future, this could help you show that you were fair and honest in your efforts to settle any debts. Find out how to get in touch with your water company on your bill or on their website. They may offer a special debt line service that you can use.
