You’re being charged a late fee and your outstanding bill is going into collections.
Do you spend several days arguing the mistake someone in charge of your bill has made, or pay up the late fee and entire balance due?
This is the situation I found myself in a couple of weeks back.
The Situation
Upon moving to a new town, I sent in a written request to terminate my utilities and send my last bill to my new address (policy promoted by the city).
I have sent many such mail correspondences in the past to pay my utilities, but somehow they failed to receive my request this time. I wonder how many other people have no problems sending money without being lost but receive late fees when their move-out request doesn’t “come through”.
Three months later I receive a notice that my bill has been transferred to collections department with a new fee attached.
Somehow in the process of moving I had forgotten to keep an eye out on the last bill. Despite my carelessness (the lack of which would likely prevent this situation), the last bill was never sent to my new address. I know this because the collection notice I received was forwarded to me by USPS. It was clear my address was never updated in the city’s records.
Who Is At Fault?
I’m part to blame for this, but the city should have been much nicer when I kindly asked them to remove the fee from my account. However, even after explaining nicely what happened, they rudely refused to do anything about it.
The lady on the phone was a total (pardon my language) bitch.
I explained to her that I have every intention of paying the last bill in full right now, but would have nothing to do with an unfairly assessed fee because somehow my mail didn’t make it there.
In all honesty I realize that there may have been mishandling of my letter and that the city might have had nothing to do with lost correspondence. I was even prepared to pay the late fee just to get the ordeal over with. Who can blame me for trying to talk some sense into an account representative and try to negotiate a deal?
I guess she has never heard of that word: negotiation.
Instead, she proceeded to give me an attitude when no hostility has been expressed on my part.
Normally, this sort of behavior from someone who wants my money would result in complete retaliation. I could have insulted the agent, ruin her day, refuse to pay and fight it to the end.
Lucky For Them… Or For Me?
In the spirit of Thanksgiving I let the whole thing go.
In one outcome I could raise hell, not pay anything and wait for the matter to go into collections. The city threatened court appearance fees which I could stubbornly put up with. I could fight it to the very end, and stand a pretty good chance at winning.
Or… I could forfeit my stubbornness, accept the fact that it might not be anyone’s fault and let them have it their way. I could pay the bill with the fee and avoid days or weeks of stress that would certainly follow by having this stress on my mind.
I chose the second outcome. The next day everything was paid up. Luckily, I didn’t have to deal with the same soul-less wraith this time.
Did I Make the Right Decision?
In retrospect, would the $30 fee be worth the stress of making things right?
Heck no.
The matter could escalate over time with growing fees. My credit score could have been harmed if an outside collections agency got involved. Who knows, there is even a possibility that I’d be forced to take out a payday loan from lenders I work with. Overall it was a clear loss-loss for me. What made it a lesser loss is my action of taking care of the matter quickly.
Sometimes it’s just better to swallow your pride no matter who is at fault, then make right by your obligations.
I hate situations like that where you know the risk of fighting is too high and so you are forced into a corner and just end up paying. I think you did the right thing, but it still sucks.
Glen @ Monster Piggy Bank recently posted..30 Tips – How to Stay Safe on the Internet
I’m just glad it was $30 and not something like $100 or more… Like the time my mom got a ticket even though she shouldn’t have. The cop didn’t see things straight.
I hate when things like this happen. There probably is blame on both sides, but you did what was necessary to make sure your part was covered. I’ve had similar things happen to us in the past and the urge is to fight, but in the long run just is not worth the effort. I think you did the right thing in the end.
John S @ Frugal Rules recently posted..The Risks and Rewards of Taking The Plunge – Part 2
I was definitely part to blame. I guess most of the fury came from the way the collections person was talking to me. Oh well, best to let things go. She was just probably doing her job of dealing with stressful people on the phone prior to speaking with me.
Yep, I have been in situations like this. I am the type that usually doesn’t mind fighting for what I believe in and what I think is right, but I probably would pay up in this situation since it could have been fault on both sides. I would have liked to go to the place in person and then made a huge scene until I could get a manager or higher up to take care of it. Usually when you make scene, things can get resolved quickly. My mom taught me that one!
Grayson @ Debt Roundup recently posted..3 Effective Tips on Personal Financial Management
Haha, scene maker! I’d love to do that, but the place is an hour and a half away
Crappy situation, but $30 isn’t the end of the world. With that being said, I fight fees like that like crazy. I definitely think there are situations where it is better to just swallow your pride, pay up, and move on.
DC @ Young Adult Money recently posted..20 Ideas for New Year’s Resolutions
It’s been happening a lot lately. Seems like my mail is getting lost.
I think everyone has faced this at one time or another. In that regard, my motto is to pick and choose your battles. Sometimes the “cost” of being right and winning is higher in emotional drainage and time spent going through the red tape. It sucks to eat the cost though. It’s like “the man” won. lol!
Budget & the Beach recently posted..Looking Back, Looking Forward: Part 2
I know, I felt terrible giving up, but the thought of having to think about it any longer didn’t sound so good.
Ugh, that situation totally sucks! But I think you did the right thing.
Mackenzie recently posted..Candy Canes and Credit Cards
Come to think of it, I should have done what Pauline suggested and call back another time to see if some other person picks up and has a better attitude. But ultimately, I don’t regret it.
Yes sometimes it’s true just to suck it up and move on. It sounds to me that for the $30 it would have taken more time and effort on your part. When we moved here in Ontario we paid $60 for a 6 month mail re-direct meaning that anything that was addressed to our old address would redirect automatically. Some people don’t use it and decide to contact everyone and give out the new address. For us it was worth the money. Moving can be a pain in the backside behind the scenes. Sometimes just moving is the easy part…
Canadianbudgetbinder recently posted..A Beginners Guide to Early Retirement
Hmmm, I wonder if we have that. Is that service from the post office? I should look into that – may be worth saving a headache or two.
It depends on the amount. For a few bucks, I’m not going to rock any boats. But for a larger amount, I’m going to fight tooth and nail. We recently had a creditor come after us for a bill that was actually discharged in my wife’s bankruptcy. For $300, I spent an hour on the phone with 5 different people to get it straightened out.
I’d do the same way in the other direction. I’ve been undercharged a couple times in my life for things. For $5, I’m not going to bother. But for a larger amount, I will go back and make amends.
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You’re a good guy
I found 20$ on the ground in Laguna Beach with nobody around to claim it. Had I seen the person drop it they would have it back, but no1 around = I’m keeping it 
I tend to agree with you. Whenever I get billed ‘incorrectly’, I usually call and nicely explain things. Then if they go the wrong direction, I express my displeasure. Then if this also fails, I pay it and let it go. Not worth ‘steaming’ about.
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I tried my best to be reasonable with her and not to steam my displeasure of her tone of voice, but she made it so difficult! In hindsight, I should have asked for her supervisor or called back to see if I could get another person on the phone as some have suggested here. Thanks for your comment Jason.
One can’t avoid financial problems at one point or another. I agree that sometimes it’s better to suck it up and cut your losses.
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Thanks for stopping by Barbara. I’m glad I wrote about it here, as many have made some good suggestions. Overall though, I’m not stressed about it and its Christmas time – glad I let it go.
Sometimes $30 is just $30 and not worth the headache. I’m sure you have better things to do with your time. On a side note, I find that city employees who deal with the public need customer service skills.
Marissa @ Thirtysixmonths recently posted..Why I Am a Maker of Things.
Indeed Marissa. I suppose dealing with many people on a daily bases frustrates them to the point where no matter who they talk to next, some of the stress will be shown.
I would have definitely asked for them to take it off as well! They should have tried to be more flexible.
Holly@ClubThrifty recently posted..Christmas Shopping Budgeting Tips
I know, even the Toll Road people were much nicer!
I would have called back and hoped the same lovely lady doesn’t pick up. Then probably given up. I do that when I call to renew my internet at half price each year, sometimes it is a new guy in training and he doesn’t know that the company does that to retain customers. Talking to someone else takes half the time that fighting that first person. $30 is worth less than your sanity obviously, although it is annoying to deal with narrow minded people.
Pauline recently posted..How much do you spend on gifts?
I should have done that! Why didn’t I think of it
I’ll give it a try next time anything comes up for negotiation.
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It really depends, for me. If I can be certain that I am not to blame, then I would probably fight for it. But if it was partially my fault, the effort is usually not worth it.
CF recently posted..Pay Off Your Mortgage – Ludicrous Speed Edition
That’s partially why I didn’t feel like fighting it to the end. It’s quite possible the mail got lost or I wrote down the wrong address or something / forgot the stamp. It’s also my fault for not remembering to check into the matter after moving. That’s one extra thing to add to my moving checklist: don’t forget to track pending last bills to make sure they go through!
Thanks for your comments CF.
I only thing you might have done differently is asked for the supervisor. At least the rep may get a negative review for their attitude and you may have gotten the fee waived. But $30 certainly isn’t worth the amount of stress of letting it continue.
JumboCDInvestments recently posted..October 2012 CD Rate Update
You’re right, I should have done that. Thanks for your tip, I will keep it in mind for the next time! (Hopefully there is no next time lol).
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