Customer facing hardship has debt sent to collection agency

Published on 27 August 2024

Rachel* was experiencing financial and personal hardship after leaving a domestic violence situation. In addition to this, she lost her job and her home was impacted by flooding.

Rachel contacted her energy provider to let them know about her financial hardship and requested a payment plan for her accumulated debt of over $1,800. The provider did not respond to her request in a timely manner and Rachel made the decision to disconnect the power. This resulted in the account being closed, and following their normal process, the provider sent the debt to a collection agency.

After discovering what had happened, Rachel contacted the provider again. As a result, the debt was recalled from collection and a payment plan set up. Rachel was then informed she was not eligible to apply for the Home Energy Emergency Assistance Scheme (HEEAS) to help with her debt amount.

Here’s how we helped

When we investigated, we confirmed that there was an initial delay in the energy provider responding to Rachel’s payment plan and hardship request. When the time was added on for referral to the collection agency and then withdrawal again, the account had been closed for over 60 days. This meant that the customer was no longer eligible to apply for HEEAS $720 grant, as applications need to be initiated by the energy provider within 60 days of account closure.

Outcome

As a resolution of the matter, the energy provider applied a $1,000 credit to Rachel’s account. This credit was to cover the missed HEEAS grant of $720 plus an extra $280 as a customer service goodwill gesture. For the remaining balance, the energy provider offered to review Rachel’s current payment plan to ensure it was manageable. Rachel was satisfied with the outcome, including the payment plan.

What can you do?

If you’re facing financial difficulty and don’t think you’ll be able to pay your energy or water bills, the first step is to contact your provider. They can help by talking through your options of payment plans, options and other rebates and concessions you may be eligible. Read more advice on payment assistance.

If you’re not happy with their response, you can make a complaint with us.

*name changed to protect privacy.